According to a McKinsey report, digital payment processings increased to 89% in 2022, and the percentage of people using two or more digital payment methods has grown at a fast pace, rising from 51% in 2021 to 62% in 2022. Consumers claiming to want to use three or more digital wallets in the future rose from 18% in 2021 to 30% in 2022. These stats make it clear—the future of payments is a digital one.
Staying up to date with the latest digital payment trends is not only crucial for understanding the payment methods your customers prefer but also what workers are looking for. We dive into several major trends shaping the future of digital payments today.
1. Mobile Payments & Wallets
There’s no doubt that the pandemic helped increase the demand for fast, contactless, and secure digital payments. People are reaching to pay with their phones rather than physical wallets via digital wallets like Apple Pay, Google Wallet, and Samsung Pay. The use of mobile wallets is predicted to reach around 4.87 billion by 2025. And we can see why: it’s become a convenient, safe way for users to transact.
Providing a digital wallet for your workforce is a great way to boost retention and provide meaningful financial wellness benefits. When choosing a digital wallet, the most important thing is to find a reputable provider and research whether or not they charge fees, how secure they are, and what type of features they offer. For companies looking to offer their workforce a free digital wallet, the Branch App allows workers to receive their wages, mileage reimbursements, cashless tips, and more in one secure account.
2. Biometric Authentication
Biometric authentication—such as fingerprint, face, and voice recognition—is one of the safest ways to protect digital payments.y. These systems verify a user's identity using physical characteristics to ensure that the right person is making the payment, receiving it, or accessing the account.
Remember to add these payment security measures in place. Traditional authentication methods such as codes or passwords can easily be stolen or forgotten. Since biometric data is much more difficult to obtain or replicate, it’s significantly harder for fraudsters to gain unauthorized access to accounts.
3. Branded Payments
Companies are increasingly looking to create their own payments experience, whether turning to banking as a Service to build and integrate payments and banking services on their own, or partnering with a payments platform to deliver a turnkey, white label solution. Inspired by the branded payments and loyalty experience of consumer brands like Starbucks and Uber, workplaces and platforms are increasingly looking to create their own payments experience for their workers. This provides new opportunities to pay workers faster, decrease turnover, attract talent, and reduce costs. Our most recent Gig Payments Report found that over 80% of gig workers are interested in financial services provided by a platform that they work with.
Other trends to keep in mind
Because the digital payments space is one that’s quickly developing and changing, here are other trends that are important to stay aware of:
- Open Banking allows third-party financial service providers to access consumer financial information through APIs.
- AI and machine learning are being used and developed to increase the security of digital payments.
- Buy Now, Pay Later (BNPL) allows consumers to defer payment for purchases, benefiting both B2B and B2C businesses by increasing sales and customer satisfaction.
Prepare for the future of digital payments with Branch
Ensure you’re up-to-date with the way customers are choosing to pay—and how workers prefer to be paid. Let Branch help you make the most out of your digital payments and ensure both you and your workforce are up to speed and ready for success in the years to come.
Want more? Here are the six workplace trends shaping the future of work.