Mar 22, 2017
Payments Radar: Where is the future of payments heading?
Technology has a solution for almost everything you could imagine. Arguably, it has been the driving force of innovation in most industries for centuries. In the past 10 years, however, technology has been changing and improving faster than ever before. It is developing at such a great speed that it has entered all spheres of life and business. One could go as far as to say that every industry falls under the tech industry in today’s tech-led world.
The financial services sector is an area where tech companies and start-ups are increasingly teaming up with banks, the traditional financial companies, to improve people’s payment methods.
In light of constant innovation in the tech world, we look at new payments gadgets for the everyday consumer.
The latest introduction to payments tech are sunglasses. The multinational financial services company, Visa, announced at SXSW that they are testing the new product for contactless payments. The sunglasses, which are still in the development stage, have a small NFC chip at the inner arm linked to the owner’s Visa card account. If these become available on the market, you would not have to worry about having your wallet stolen at the beach while you are having a dip in the sea. All you would need would be a pair of shades. Surely a beach-goer’s dream?
Source: Tech Radar
Tech giants, Google, are continuing their venture into the payments sector. US users will be happy to hear that the Gmail feature of sending and receiving money will be available through the Android app. This service has been previously (since 2013) available only through desktop. This means that sending money will be as simple as attaching a file to your email. Is Google gearing up to move in on the low volume merchant market in similar fashion to PayPal?
Samsung UK users eager to explore contactless smartphone payments will be happy to hear that Samsung Pay’s rumoured release date is 28 April 2017. This service has been available in the US since September 2015 but this will be the first time it comes to the UK. It is also rumoured that the new Samsung Galaxy S8 smartphone will be capable of verifying transactions through facial recognition. Will this cause a surge of digital wallet users?
What about security?
How safe will these new products be? It is vital that financial services are frequently regulated, especially new entrants to the market. Personal information and bank details are especially vulnerable to hacks and fraud. Claimed to be the “largest publicly disclosed cyber-breach in history”, Yahoo! is one recent victim of a breach to its servers. It is a no-brainer then that following strict security and financial law processes is mandatory for any financial services business. Any business for that matter.
Blockchain may indeed be the future of safe financial transactions. Formed of an alliance of companies, coders and charities, it is a decentralised digital ledger which records transactions across multiple computers around the world. It is deemed safe because once data is entered, it cannot be altered and, thus, easier to verify authenticity and less vulnerable to fraud.
What payment innovations are on your radar and where do you think the future of payments is heading?