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Points You Need To Know About The Grow Of Online Payment Gateways




The cashless payment method is growing exponentially with evolving payment methods, rising e-commerce use, enhanced broadband connectivity, and emergence of the latest technologies. Can increasing incidences of cyberattacks and spams hamper the expansion of internet payment market or does it expanding at a rapid rate?





The worldwide digital payment market is supposed to hit the USD6.6 trillion mark in 2021, registering around a 40% begin couple of years. The cashless payment methods are rapidly evolving with ground-breaking innovations including mobile wallets, peer-to-peer (P2P) mobile payments, real-time payments, and cryptocurrencies. Inside the growing digital age, many payment technology publication rack collaborating with traditional banking institutions to focus on the latest consumer and merchant preferences. On account of enhanced broadband connectivity, increasing mobile commerce, emergence of new technologies for example Virtual Reality, Artificial Intelligence, and rapid digitization, immeasureable people have started embracing contactless payments both in developed and emerging countries. Besides, surging e-commerce businesses, digital remittances, digital business payments, and mobile B2B payments are boosting the non-cash transaction ecosystem.

Cashless transaction method users across various generations are widely adopting the digital peer-to-peer (P2P) apps because they are more pleasing and versatile to make use of. In-app payments or tap-and-go transactions take seconds at the checkout and permit users to create payments anytime and anywhere. Tokenization, encryption, Secure Sockets Layer (SSL), etc., offer multiple methods for securing payments while enabling digital transactions. Moreover, you do not have to fill in information each and every time to finish the payment process. Thus, online payment gateways play a crucial role in the economic growth, enabling trade in the modern economy. With social distancing rules in place, digital payments are becoming an obligation for contactless transactions rather than just a transaction option to avoid the spread of coronavirus.

Digital Commerce Empowering Businesses
Electronic payment systems have become a crucial part of businesses as consumer inclination towards shopping on the web is expanding. With broadening internet penetration, increasing usage of smartphones, and various alternatives for e-transactions, most people are preferring online channels over traditional brick-and-mortar stores for shopping. Therefore, businesses are shifting online with the electronic payment strategy to maximize their profit earnings. Automating the electronic payment system eliminates the scope of errors and saves a considerable amount of time and effort. High standards for detecting and preventing fraud in digital transaction systems and AI-based fraud detections protect users from security breaches. By providing the pliability in making payments through credit/debit cards, mobile money, e-Wallet, etc., nokia's can expand their client base. The electronic payment process improves customer happiness as customers need not count cash or handle paperwork if he or she intend to make the transaction.

Biometric Authentication Enhancing Security
Biometric authentication involves recognizing biometric features and structural characteristics to ensure the identification of your individual. The verification method can involve fingerprint scanning, facial recognition, voice recognition, vein mapping, iris detection, and heartbeat analysis. Together with the surge in identity fraud and fraud, biometric authentication has changed into a reliable and secure alternative to make digital transactions. Based on a recent research, biometrically verified mobile commerce transactions are anticipated to constitute a massive 57% of the total biometric transaction by 2023. Biometric payment cards are also becoming more popular as they support tap-and-go payments, allowing users to make faster digital transactions. The digital payment technology provider, Worldline is partnering up with all the French FinTech, A3BC (Anything Anywhere Anytime Biometric Connection), to safeguard mobiles from intrusion which has a two-factor authentication process. The combined solution eliminates identification by having a single touch, rather it recognizes fingerprints by having a picture of the hand. MasterCard is about to bring FinGo's vein-scanning payment solution that facilitates users to authenticate transactions.

Dominance of Mobile Wallets
In 2019, mobile wallets overtook credit cards being the highly adopted payment type globally. Digital wallets offer flexibility to users to save multiple payment methods a single digital home change cash into electronic money required for online or in-store purchases. Loan companies have already started to embrace a digital wallet trend by providing virtual cards to business customers. The virtual cards kept in digital wallets contain details like 16-digit card number, CVV code, date of expiry and work similar to the physical credit card. Currently, only 37% of merchants support mobile payments at the point of sale, though increasing adoption, merchants are prepared to purchase technologies facilitating digital wallets. The virtual wallets can help to save money because of low processing costs while they limit transaction values and frequency. Artificial Intelligence (AI) is enhancing the buyer on the subject of transactions with ChatBots, designed to execute and robotize essential exchanges as reported by the user's interest. Besides, cryptographic money-based e-wallets are being embraced by new companies to small-medium organizations for storing digital money. Smart voice technologies are causing the expansion of smart voice wallets ever since Amazon propelled the principle of the platform, that's now being followed by Google and Apple.

E-Commerce Boom Accelerating Digital Payment Market Growth
E-commerce growth with an exponential minute rates are creating shock waves, along with the sonic boom is reverberating over the FinTech sector. The increase of several e-commerce companies is driven by the form of financial services they feature. Digital transactions make it convenient for that buyer and seller to create transactions and also be loyal to industry space. The COVID-19 pandemic added another dimension to e-commerce innovation, introducing newer trends such as payment alternatives at checkouts (avoid digital wallets), virtual cards, QR codes, and also other touchless transactions. Besides, the Buy Now Pay Later (BNPL) trend is dominating the e-commerce industry because it relieves the financial burden around the buyer. BNPL involves a soft credit check needed, therefore the consumers can buy what they already want, maintain your inventory moving, and pay overtime without affecting their credit standing. BNPL provides businesses with much-needed liquidity and greater flexibility at the checkout.

Influence of COVID-19 Pandemic on Digital Payment Market Growth
Digital payment systems have moved beyond their peer-to-peer (P2P) transfers and bill payments. The COVID-19 pandemic allowed digital payment systems to showcase their strengths, say for example a strong knowledge of hyper-local markets and its ability to establish strong local partnerships. Businesses and consumers increasingly "went digital" for providing and acquiring products or services online. Once the pandemic hit, people didn't desire to touch or exchange cash as a result of paranoia of catching the problem from physical currencies. Several governments worldwide introduced digital financial gets in provide COVID-assistance. As a result of lockdown measures, consumers shifted to online platforms, which catapulted the interest in digital payment systems. Now, digital platforms have become an extremely important component of people's lives, and rrndividuals are prone to continue shopping on the web from the post-pandemic period. The dramatic transfer of consumer behavior will probably augment the interest in e-payment systems a lot more. Therefore, information mill focusing their attention on digital mediums to fulfill the new customer demands and thrive businesses within the changing market scenario. Organizations are reimagining customer journeys to reduce friction and offer new security features. Payment companies such as PayPal and Square Cash are staffing up charges to higher view the rearrangement of societal norms and stabilize the business enterprise sooner.

e-Payment Systems include the Future
With increasing smartphone and internet penetration, rrndividuals are becoming tech-savvy, which presents endless opportunities for your digital payment markets. Post-pandemic, digital payment systems are likely to still flourish over the years into the future. While cards remain the best for payments around the world, mobile wallets are quickly gaining traction. The traditional cashflow is declining in bank branches and ATMs, demonstrating a power move perfectly into a cashless society. Currently, China dominates the international mobile wallet consumption, then The philipines. However, you can still find many countries which are highly dependent upon cash due to lack of trust towards finance institutions and lack of proper broadband infrastructure, etc. In the near future, social media-initiated payments, biometric payments, voice-activated payments will probably become mainstream in developing countries as well.

Cybersecurity and Privacy Concerns with Online Payment Solutions
Cybersecurity and privacy threats have grown to be a troubling nervous about the growing incidences of online fraud. In line with the Mastercard survey, one inch four consumers experienced some form of fraud in 2020, ramping inside the cybercrime rate by 49%. In the first 50 % of 2020, online scams increased by 73.8% from 2019. However, adopting new-age technologies including multifactor authentication, biometrics, 3D security, Artificial Intelligence, and Machine Learning may help control fraudulent activities including phishing, virus attacks, etc. Shifting to contactless cards, QR codes, and tokenization will also help mitigate risks related to digital payment solutions. Besides, sensitizing end-users regarding the secure using e-payment solutions through amplifying efforts towards building financial literacy may help prevent frauds. The emergence of mobile commerce and also the evolution of e-payment platforms backed by robust security solutions can help to drive the aim of making the economy truly cash-less.

Based on TechSci research directory of "Global Payment Gateway Market By Type (Hosted, Self-hosted & Bank Integrated), By Enterprise Size (SME and Large Enterprise), By End-User (Retail, Travel & Hospitality, Healthcare, Education, Government, Utilities & Others), By Region, Competition, Forecast & Opportunities, 2026", the global payment gateway companies are expected to cross USD15 billion mark in 2019, registering a CAGR of 22% by 2026. The increase might be due to the increasing demand for online transactions, rising broadband connectivity, and exponential increase of e-commerce across the world.


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