Ways Technology Has Changed Traditional Payment Methods
Payment experiences have changed significantly over the decades; an example of this can be the recent phenomenon of the Fastag recharge app. In addition, technological advancements, customers’ demands for convenience, security measures, and regulation have changed how we pay for goods and services.
Checks then became a practical option for large ticket purchases after cash was the predominant form of payment for a while. It permitted shoppers to carry less cash. Then came plastic credit and debit cards, which allowed consumers to have thinner wallets but more extensive purchasing power.
From cash to credit cards and contactless payments like a mobile recharge app, today’s customers have many options to pay when they shop. Customers can even pay by scanning QR codes with their smartphones or using peer-to-peer (P2P) applications in certain situations.
These typical payment processes have evolved into something bigger than themselves; they have become instrumental in providing customers with a unique shopping experience. But these payment methods didn’t just develop overnight. And many of these technological advancements, like UPI app download, have changed our payment methods forever.
- EMV Chip Cards
Being highly effective in reducing counterfeit card fraud in developed countries such as France, Australia, Canada, and others, EMV was brought to the United States in 2015. Unlike magstripe cards, EMV cards create unique transaction codes with every use.
In addition, these chip cards create two-way communication between themselves and the payment acceptance device to authenticate the transaction. As a result, chip technology has helped reduce counterfeit fraud in the United States by seventy-six percent since its launch.
- Contactless Payments
Contactless payments add speed, additional security, and convenience to the payment process. As a result, contactless cards have been commonplace in European countries and Canada, among other places, allowing them to tap their cards on the payment acceptance devices to pay.
While contactless cards are relatively new in the United States, mobile wallets such as Apple Pay and Google Pay use the same technology to enable customers to use their phones to tap and pay. Furthermore, mobile wallets add another layer of payment security using biometrics authentication. In addition to these customer benefits, when integrated with value-added services (VAS), mobile wallets can also help merchants efficiently manage loyalty programs.
The COVID-19 pandemic has dramatically accelerated the adoption of contactless payments like cards and mobile UPI wallet in 2020 as an easy way to pay for purchases without physically touching a payment acceptance device. It improved the speed of transactions and gave shoppers peace of mind as they benefited from a safer way to pay.
- Mobile Point of Sale
Mobile POS, a kind of online bank transfer, redefines the payment landscape. It enables businesses of all sizes to securely capture payments wherever the customers are and creates unique experiences which can go a long way in providing an exceptional customer experience. Initially seen as a solution for small to medium-sized businesses (SMBs), it slowly became a critical consideration for the enterprise. Whether it’s retailers helping customers checkout in an aisle, curbside pickups, or hotel staff checking guests in at the lobby instead of the front desk, mobile POS has gained popularity over the years.
