As technology continues to advance and the world becomes increasingly digital, the way we pay for goods and services is evolving. While debit and credit cards have been the go-to payment methods for many years, new payment technologies are emerging that could replace them in the near future. In this article, we will explore some of the innovative payment methods that are on the horizon and discuss their potential to revolutionize the way we make transactions. From mobile payments and digital wallets to biometric authentication and blockchain-based currencies, the payment landscape is rapidly changing, and it’s important to stay informed about the options that are already disrupting the world of payment as we speak.
BNPL is gaining momentum
“Buy now, pay later” (BNPL) is a payment method that allows customers to purchase goods or services and pay for them later in installments, rather than paying the full amount upfront. This payment method has become increasingly popular in recent years, especially for online purchases. According to a recent report by FIS, “BNPL is now the fastest-growing payment method. By 2024, an estimated $306.8 bn of e-commerce purchases will be made via BNPL, increasing from $97.2bn in 2020. The reason: More consumers are choosing BNPL as a way to budget and control finances, managing the cost purchases directly at the point of sale.”
With BNPL, customers are typically offered the option to split their payments into several smaller payments over a period of time, such as weekly or monthly payments, instead of paying the full amount upfront. The payment plan is usually interest-free if payments are made on time. However, if payments are missed or late, the customer may incur fees and interest charges.
BNPL services are typically offered by third-party providers that partner with merchants or retailers to offer the payment option at checkout. Customers can select BNPL as their preferred payment option at checkout and usually only need to provide minimal information to apply.
But there are a few caveats, especially those hidden in the small print. it’s important to read the terms and conditions carefully and make sure you understand the fees and interest charges that may apply.
Payment apps are preferred by many
PayPal, one of the most well-known payment apps, has been around for over two decades and is used by millions of people worldwide. But it’s by far not the only alternative to card payments that’s gaining traction today.
One of the most popular payment methods in North America is Venmo, a service owned by PayPal, a peer-to-peer payment app that allows users to send and receive money from friends and family. Users can link their bank account to Venmo and then send money to other Venmo users by entering their usernames or phone number. Venmo also offers a social aspect, allowing users to see their friends’ transactions and share payments with others.
Zelle is a mobile payment app that is owned by a group of banks in the United States. With Zelle, users can send money to friends and family using just their email address or phone number. Users can link their bank account to Zelle and then transfer money to other Zelle users instantly. Zelle offers a convenient option for sending money between bank accounts without having to go through a third-party app or service.
Cash App, which is owned by Square, is a mobile payment app that allows users to send and receive money using just their email address or phone number. Users can fund their Cash App account by linking it to their bank account and then use the funds to make purchases or transfer money to other Cash App users. Cash App also offers a debit card, called Cash Card, which can be used to make purchases online or in stores.
Overall, these payment apps offer a convenient and secure alternative to traditional credit and debit card payments. By linking their bank accounts, users can transfer money quickly and easily without having to provide sensitive financial information. Additionally, many of these apps offer features such as buyer and seller protection, making them a popular choice for e-commerce transactions. While there are some fees associated with using these payment apps, they are often lower than those associated with credit or debit card transactions.
Businesses also embrace these payment apps because they provide a range of options for accepting payments and managing transactions.
But don’t dismiss credit and debit cards just yet
Debit and credit cards have become ubiquitous payment methods across many industries, including retail, hospitality, and e-commerce. Despite the emergence of new payment technologies, these industries are likely to continue relying on cards for the foreseeable future, as they are widely accepted, familiar to consumers, and provide a secure and convenient way to make transactions.
In the retail industry, for example, debit and credit cards remain the most popular payment methods, with many stores equipped with card readers and payment terminals. Similarly, in the hospitality industry, hotels, restaurants, and bars often require customers to present a card upon check-in or to open a tab. And in e-commerce, card payments are still the most common way to pay for online purchases.
While new payment technologies may disrupt these industries in the long term, it is unlikely that debit and credit cards will be completely replaced anytime soon. One industry that is likely to continue to rely on cards, in particular, is iGaming, which encompasses online gambling and betting. All the iGaming outlets listed at https://www.gamblingsites.org/gambling/credit-card/ rely on cards as their primary payment method.
One reason for this is that debit and credit cards are widely accepted and familiar to consumers, making them a convenient and accessible way to make payments on iGaming sites. Additionally, card payments allow for quick and secure transactions, which is important in an industry where speed and security are key concerns. Furthermore, regulations in many jurisdictions require iGaming operators to verify the identity of their customers and prevent fraud and money laundering. Debit and credit cards provide a means of verifying a customer’s identity, as well as ensuring that the funds being used to gamble or bet are legitimate.
the payment landscape is rapidly changing, with new payment technologies emerging that could replace traditional payment methods such as debit and credit cards. Innovative payment methods such as BNPL, payment apps like Venmo, Zelle, and Cash App, and blockchain-based currencies are disrupting the payment industry. While debit and credit cards are still the most popular payment methods, new technologies are gaining momentum. Still, while they may disrupt some industries in the long term, it is unlikely that debit and credit cards will be completely replaced anytime soon. Businesses need to be aware of these payment options and provide customers with choices that fit their needs.