Digital payments: 4.0 payment systems for an online market that shows no signs of stopping
The digital payments sector in 2018 generated a market of around 38 billion dollars globally: the numbers regarding the trend of digital payments are constantly growing with a positive average annual rate of 18% and a turnover of almost 90 billion dollars estimated by 2023.
These are the data that emerged from the latest market research of the Report Linker company , analyzes that clearly highlight the constantly increasing trend relative to the modern digital payments market : the incessant introduction of innovative technologies and the development of a constantly connected communication network are the main prerequisites for devising new business opportunities with smart and original payment methods.
Speed, comfort and modernity are the main features of the new digital payment systems: in a modern and digitally active company 24 hours a day it is inevitable that the sales and payment sectors will undergo radical changes. If online sales, e-commerce and purchases via Social media represent the latest frontiers in the commercial sphere, Digital Payments, ePayments and Mobile Payments are the real innovations in the payments sector.
The ” Digital Payments Study Visa ” research carried out in 2017 communicates that 68% of users in Europe use digital payments to buy products or services: the major consumers of digital payments services are the Millenials (people born between 1981 and 1996 ) with a percentage of activity of almost 90%.Do you want to grow your business? Discover the rates and benefits of UAE Website Development payment systems
Digital payments: what they are and how they work
What are digital payments? When can a payment method be defined as such?
The term “digital payments” defines all types of payments made in digital mode: online purchases, electronic wallet payments and internet money transfer provisions; P2P payments and transactions made in physical stores using NFC technology and the contact less POS mode are also included in the digital payments category .
Although very different from each other, all types of digital payments have as their primary objective the optimization of the customer experience, guaranteeing the user comfort and speed: POS and contactless turn out to be practical solutions and ideal for activities within stores, applications of online sales and digital transactions are the payment methods most appreciated by ecommerce users thanks to an intuitive, safe and fast service.
Digital payments: the different types
Digital payments include many different types of payment, we find out what they are:
All payments that occur through the use of a card are classified as “digital”. Card payments are divided into two categories: Contact less Payment, or enabling payments by physical credit, debit or prepaid card with contact less mode (without contact), and Mobile POS , payments made through hardware and software that can transform one smartphone in a tool to accept card payments. In particular, contact less payments have experienced exponential growth since 2016 with an increase of around 700%.
Electronic payments and new forms of bank transfer
Digital payments include new payment solutions also for the bank transfer method: making direct transfers to bank accounts digitally is now an activity commonly carried out by online buyers and users. One of the most used solutions to obtain an authorization to transfer money from your bank account to that of the merchant is without MyBank : a digital authorization solution that transfers payments online (via tablet or smartphone) in a secure manner by certifying your identity digital only via the current account.
Payments via smartphone with e-wallets and applications
Transactions via smartphones are undoubtedly the most innovative category within digital payments and can be divided into four types: Mobile Remote Commerce, Mobile Remote Payment, Mobile Proximity Payment and Mobile Proximity Commerce . The Mobile Remote Commerce category includes all the purchasing processes that take place via smartphone with debit on a payment card or electronic purse, Mobile Remote Payment indicate instead all payments of top-ups, bills, parking lots or newsletters occurred through mobile phone with charge on e wallet or card. The Mobile Proximity Payment type refers to payments made at the points of sale, authorized by smartphones using NFC or QR codes and debited on paper, electronic purse or bank account, and finally Mobile Proximity Commerce includes all the services supporting the in-store customer experience such as authorization of coupons or loyalty services.
Digital payments: 3 points in favor
Digital payments offer multiple innovative solutions compared to the classic payment with cash, we discover what are the points in favor of digital payments:
Security and insurance coverage
Most digital payments offer the customer a valid insurance coverage for the goods purchased online: in many cases it is possible to get quick refunds in case of product returns and refunds valid in the event of a fraud. The privacy regulations and information security systems are gradually gaining more confidence from consumers who prefer online purchases over physical purchases.
Rapidity and simplicity
Online consumers are looking for speed and simplicity in their purchasing procedures: digital payments are able to constantly optimize themselves, guaranteeing security, speed and comfort to the user who uses them.
Internationalization of payments
With the use of digital payments there are no exchange problems: it is possible to travel in any country by paying through your credit card or mobile device thanks to the international digital payment circuits.
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