Change is an inevitable part of life, and the payments industry isn’t immune to that fact. The ways consumers pay their bills, purchase their groceries and transfer funds have undergone a number of changes in the past decade, and will no doubt continue to transform into the foreseeable future.
A recent ATM Marketplace article takes a closer look at some specific shifts payments will likely experience over the next 10 years. I’ve highlighted a few of them below.
- Cash will stay in the game — Mobile payments are expected to continue to gain traction, as more than 6 billion people now have access to a mobile phone. Despite this, and a predicted increase in prepaid card usage, cash will continue to be the payment method of choice for many consumers.
- Real-time will rule — Regulatory burden to establish faster payments will continue to be placed on financial institutions (FIs) worldwide, encouraging the implementation of real-time payment transfer systems. This will likely lead to these new real-time transfer payments being rooted in innovative FI services like SHAZAM BOLT$.
- Wearables will enjoy more uniformity — As wearables’ designs evolve into likely smaller, more aesthetically pleasing and comfortable devices, they’ll become increasingly popular. By 2017, Gartner research forecasts 30 percent of smart wearables will become nearly invisible, with contact lenses being one option in consideration. Smart wearables disguised as jewelry is another potential advancement in wearable technology.
- Checks will become even more scarce — Checks are predicted to decline even further in usage over the next decade. Innovative person-to-person payment channels, as well as mobile and even social media accounts, are expected to increasingly replace checks over time.
Whether these predictions come to fruition remains to be seen, but one thing is for certain: being proactive about potential changes typically serves us better than adopting a wait and see approach. Consider where your FI stands when it comes to accepting and adapting to change. Understanding and embracing the payments industry’s evolution can serve FIs well as we march forward in this age of innovation.