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Cashless & Contactless, biometric systems… trends in payment methods this year

The digital payment methods have grown considerably in recent years. Before the pandemic, the world was already moving towards the disuse of cash, but the increase in cashless and contactless payment alternatives has meant that these systems are installed in a large part of the world population. PaynoPain, a Spanish technology company specializing in the development of online payment tools, analyzes the trends that will mark 2022 hand in hand with the fintech market.

A new study by Accenture states that, since the pandemic, the growth of these payment methods has accelerated in five years. According to this report: “Covid-19 took us away from cash and even from our credit cards. The contactless payments they grew 150% since March 2019. And this phenomenon will continue globally: almost 2.7 trillion transactions, worth 48 trillion dollars will switch from cash to cards and digital payments in the next decade».

Given these data, it is not difficult to imagine that the use of cash will be reduced so much as to be almost non-existent. Fintech, all those new technologies applied to financial and investment activities, have experienced exponential growth. In total, 38.5% of those under 25 years of age already use them, according to a study by the consumer association (Asufin). This happens because this market offers more flexible, faster and more personalized alternatives when it comes to paying, without the need to move from home.

Open doors

The advancement of technology opens many doors in the field of digital payments and today many ideas have come true that a few years ago would have seemed like science fiction. PaynoPain analyzes some of the trends that will continue to be talked about during 2022:

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  • Cashless & Contactless: Contactless methods from mobile phones or other devices such as wearables (watches or other accessories) will continue to rise and will be an increasingly popular alternative. The use of virtual cards in “electronic wallets”, QR codes, MoTo and Pay by link payments, and especially Peer-to-peer, will break new records in 2022. The percentage of implementation of instant payments between people already It reaches almost 90% of Spanish banks, according to a survey by the Bank of Spain, mainly after the appearance of the payment solution for Spanish banks, Bizum, and will continue to grow.
  • Biometric systems: After the digitization of payments, and the increase in e-commerce, one of the greatest demands is security. In this sense, biometric identification technology was gaining ground as it is a great tool when it comes to authenticating the identity of users as it is based on the recognition of a physical and non-transferable characteristic of people. The application of PSD2 has been a clear trigger for its use. Now, user identification can be done by multiple mechanisms such as fingerprint, facial recognition, retinal scanner or voice recognition. Its use in payment methods contains very ambitious projects such as hand vein reading systems or payment for recognition of eye veins.
  • True omnichannel: Hand in hand with the rise of electronic commerce, new digital technologies have arrived that allow businesses to establish a close relationship with customers, understanding their situation in real time. This will drive the development of hyper-personalized omnichannel strategies, whose ultimate goal will be to offer the user a homogeneous experience through all the contact channels that a company can maintain with them, both in the offline and digital worlds. Next year we will see many trends related to achieving a true omnichannel approach, and the ability to adapt with which companies achieve it will define, in many cases, the survival of many of them.
  • cryptocurrencies: Thanks to Bitcoin, virtual currencies are more fashionable than ever and their followers number in the millions. As a payment system, it is one of the safest and most sophisticated that exists and allows online businesses to offer payment with cryptocurrencies and receive them FIAT currency (Euros) in the company account. Although it is not yet in widespread use, the truth is that the blockchain already has many followers who use cryptocurrencies in their daily lives and its adoption will increase.

“At PaynoPain we have been dedicated to research and technological development specialized in payment methods for 10 years, with the aim of offering simple and innovative solutions in Spain and in other countries around the world. Undoubtedly, in the last two years we have been able to witness the rise of the revolution in digital payment methods, which opens the door to many new actors who propose the most creative tools in favor of the user experience. We are living a great moment to test ourselves and challenge ourselves for next year. Luckily, users are increasingly open to incorporating these new technologies”, says Jordi Nebot, CEO and co-founder of PaynoPain.

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