The 21st century has seen disruptions in almost all sectors of the global economy, one of which was traditional banking. The emergence of fintech has changed the way people transact due to the introduction of crypto-currencies.
Thanks to fintech trends, transactions are now cashless, faster, secure, and transparent.
1. Fintech Trends Provide Real-Time Payments
A few years back, making payments often took a few business days (3-5) before the money reflected in the business account. Even today, this delay is still there, but it’s gradually reducing. Among the main fintech future trends is the adoption of real-time payments.
It’s expected that the next few years will see a shift to real-time payments by businesses in the US. This will only happen if big institutions and merchants begin recognizing the upsides of RTP. Countries like the UK, Australia, and Singapore have developed the requisite real-time infrastructure.
These developments are accelerating payments and creating opportunities for financial institutions such as PaystubCreator.
2. Cashless Transactions
Thanks to the fintech industry, the global economy is fast becoming cashless. The rise of cashless payment can be attributed to the convenience, especially in retail and transportation. Although the adoption of cashless payments system is still slow, it’s recommended especially for businesses.
In countries like Australia, cash transactions will fall below 2% by 2022. From 2010 to 2016, cash transactions, especially with Australian merchants, dropped by a whopping 46%. Cashless transactions have become so common that people with cash are now considered a ‘’rare breed”.
Compared to Australia, the US is far behind with more than 77% of payments made in cash. Despite the numerous cashless technologies, cash payments remain the preferred option for many Americans.
The decline is due to the increase in payment technologies. This has greatly diminished the need to carry hard cash.
3. Instant Authentication Using Biometrics
You have probably come across this, especially in payment terminals, wearables, and ATMs. Biometrics are unique to every individual who makes its use the ideal authentication method. The gradual adoption of biometrics is attributed largely to the increase of biometric features in phones.
In 2018, mobile biometrics authenticated more than $124 billion worth of transactions. This number will likely hit $2 trillion in 2023. The use of biometrics is gaining a lot of traction due to the ease of use.
With biometrics, you don’t have to remember like 10 passwords to your accounts. It’s not uncommon to find an online user with over 50 accounts. All these accounts need authentication to log in.
What better way to do this than to use biometrics?
4. Growth of Blockchain
Every day billions of dollars are transacted, and this leads to a lot of paperwork and delays. A big percentage of these transactions pass through redundant processes causing even more delays.
Thanks to blockchain technology, these processes are no more. The process has become more transparent, secure, and less expensive. This trend in fintech has also reduced fraud in transactions.
Fintech Trends to Watch
With fintech trends, voice banking will soon become an integral part of banking services. It’s expected to be among the top trends in fintech in 2019. In the UK, Santander has already integrated voice banking into their services.
This year, it’s expected that more institutions in the US and the UK will integrated voice payments into their services.
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