The document outlines eight key digital payment trends for 2020, including the rise of biometric authentication, the influence of Generation Z on payment methods, and the transition from physical cards to digital codes. It highlights the increasing popularity of mobile point-of-sale systems, contactless payments, and mobile wallets, emphasizing the importance of security through AI and machine learning. Overall, it posits that digital payments are the future, with a notable shift from cash to digital methods and the emergence of new trends in the payments landscape.

1. Top 8 digital
payment trends
for 2020

2. • Economics, money, and the way we make
payments have undergone several changes since
the time of the stone age.
• In a sense all these are key indicators of our
progress as a species. The primitive methods
indicated our primitive way of living.
• Similarly, the current payment methods powered
by cutting-edge technology boast our
technological achievements of today.

3. • In such times, it’s really exciting to see what
2020 has in store for us.
• In this article, we will closely look at all
those digital payment trends that will make
it big in the year 2020.

4. Biometric authentication

5. • Biometric authentication is a trend that you’ll
see quickly emerging in the year 2020.
• Biometric authentication is a verification
method which involves biological and structural
characteristics of a person.
• These verification methods include
fingerprinting scanners, facial recognition, iris
recognition, heartbeat analysis, and vein
mapping.

6. • Biometric authentication is a unique and
important payment method as it incorporates
and provides accuracy, efficiency, and security
under a single package.
• Biometric authentication is a highly-secured
method since it involves an individual’s unique
characteristics.
• This factor also helps in building the customer
loyalty and trust.

7. Gen Z: The tech-savvy
generation

8. • Before we proceed, let’s understand what
generation Z is. The term ‘generation Z’ or
the ‘gen Z’ is used for individuals that are
born between the years 1999-2012.
• In simple words, all those who are aged 7-
20 are the gen z which also happens to be
the generation of the digital world.

9. • This is the generation that will have a
higher dependency on the cutting-edge,
automated, quicker, and efficient
technologies and services.
• As a result the demand for digital payments
systems will see a rapid growth in the
coming year.

10. From cards to codes

11. • Early on, the bank accounts were simply
recognized by random combinations of unique
digits present on card.
• However, the emv technology (europay,
mastercard, visa) has gradually picked up and
introduced customers with more computerized
and secured mechanism for payment.
• Moreover, the future of plastic cards is bound to
be overshadowed by cutting-edge payment
services that offer more convenient and seamless
methods of money transfer and store.

12. Increasing demand for
mobile point of sale

13. • Mobile-point-of-sale (mpos) is a revolutionary
technology as it frees all the merchants from their
bricks-and-mortar locations and in-store
payments. It liberates them to go to various
places like concerts, trade shows, food trucks, and
many other where they can seamlessly accept
payments from their customers.
• Not only that, the mpos technology also makes a
huge difference in the payment process of a store
by making it more streamlined and flexible by
replacing the central checkout areas with sales
staff equipped with mpos devices.

14. Smart speaker payments

15. • Home assistants or smart speakers allows its
users to give voice commands to a speaker and
receive a voice response in return.
• The user can give voice commands for various
things such as getting weather updates, traffic
update, ordering from zomato or booking a cab
from uber.

16. • Many giants have invested in the manufacturing of
smart speakers. Amazon was the first one to come
up with its first smart speaker in the year 2014.
• Google home and apple joined amazon in the year
2016 and 2017 respectively.
• Let’s have a look at some stats to understand the
smart speaker situation better. According to statista,
35% of users use smart speakers for buying
products like home care, groceries, and clothing.

17. Top-rated security powered
by AI and Machine
Learning

18. • Security is the most crucial element whenever it
comes to payment. People will always prefer
using a payment method that has a high security.
• That’s the reason why payment technologies
won’t be able to go forward without developing a
top-grade security.
• Banks receive a lot of customer details and
payment data each day. And to detect all the
possible threats within seconds, banks are now
taking the help of machine learning.

19. Contactless payments

20. • Contactless payments are another payment
method which you’ll see growing rapidly in
the year 2020.
• As the name suggests, the contactless
payment allows the customers to simply
wave their smartphone across the reader.
• This method of waving is way faster and
more convenient than inserting a card.

21. • Contactless payments are possible with the NFC
(near-field communication) technology. That’s
the reason why they are also termed as NFC
payments.
• Nfc payments are used in many countries. For
example, in china it’s used as a mode of payment
in public transport. Similarly, in london the NFC
payments is used in the bus and tube stations.
• In japan this technology is used to provide
information about the identity cards.

22. Dominance of mobile
wallets

23. • According to a report by retaildive, around 2.1
billion customers are using mobile wallets in
2019. And this number is bound to increase in
2020.
• A mobile wallet solution is nothing but a mobile
application that tries to mimic an actual physical
wallet.
• With the help of a mobile wallet, you can send
money to other users, receive money from other
users, and store money inside the wallet.
• Not only that, with the help of a mobile wallet, a
user can also pay utility bills, buy tickets, get
rewards, and many more.

24. • Big companies like apple, google, and
samsung have their mobile wallets.
However, all those wallets are brand and
company specific. In coming years, more
companies will try to create their own
brand-specific wallet.
• Companies can easily assess the customer’s
usage with the help of a mobile wallet.
There are several players that are involved
in a mobile wallet

25. Conclusion
• Digital payments are future. In coming years we will see
payment methods transitioning from physical cash to
the digital payment methods.
• Before the transition concludes, many new trends will
appear and disappear.
• These trends will play a vital role in shaping our future
payment methods.
• Many of the mentioned trends will also play a major
role in that process. But only time will tell how it will all
undergo.

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