The payments sector has evolved significantly over the last decade. We have moved away from cash-based payments and fully embraced the digital sector. In 2022, a number of trends are dominating and for businesses that want to take payments, or make them, it is essential to have an idea about what they are.
Payment gateways
Consumers are no longer inputting their card details into sites, instead, they are utilising payment gateways that do much of the work for them. A payment gateway is a merchant service that provides the facilitation and authorisation of purchases between an account holder and a platform such as a gambling site or eCommerce store.
For example, there are many casinos that use Interac, which is a payment gateway service provider that allows players to electronically transfer money from their bank to their account and then to a gambling site. It provides a secure option for players, as well as speed, safety, and convenience. This kind of method is becoming increasingly popular across all verticals, with operators offering several different providers in a bid to serve their clients better.
Crypto and digital currencies
For many years, cryptocurrencies were something of a fringe technology. They were used almost exclusively in the underground, with very few places to spend them. But in 2022, the situation has completely changed. More than 100 million people use cryptocurrency across the world, according to data from a leading cryptocurrency exchange.
As Bitstamp’s survey indicated, the actual number is likely to be higher, with more and more users coming on board every day. While only around 5% of global merchants accept crypto, some big names are already involved. For example, Microsoft, Starbucks, Etsy, and Whole Foods all offer crypto payments, with demand from consumers rising toward 50%. There are a number of intermediary companies that provide services to merchants and online operators who want to offer crypto payments to clients, making the process easier and more secure.
Digital wallets
Also known as an electronic wallet, a digital wallet is an app stored on a phone, tablet, or computer that stores the users’ payment information securely. The information it stores include card numbers, names, addresses, security numbers, and even passwords. Using a digital wallet means that users do not need to type in all their details every single time they want to make a payment.
Instead, they simply use the app each time they reach the checkout. However, digital wallets do not just store credit and debit card details, they can also keep track of gift cards, membership and loyalty cards, coupons, and reservations for travel and accommodation. According to Jonathan Kriegel of the Forbes Business Council, some of the most well-known and widely used digital wallets include PayPal, Google Pay, Venmo, Apple Pay, Zelle, and Cash App, although there are many local ones for specific jurisdictions.
Digital wallets are widely believed to be the future of card and bank account-based payments, increasing security and convenience and even facilitating in-person payments.
We have come a long way from paying with just cheques, notes, and coins. In 2022, the use of physical money is lessening while there is an increase in money that uses pixels, code, and the internet. Where we go from here remains to be seen.
