Gone are the days when making payments in cash was the only option available to consumers. Today, we have a wide range of payment options thanks to the latest developments in technology. Moreover, the payment processing environment is evolving, making it necessary for consumers and businesses to stay updated on the latest trends.
Cashless payment is far from a novel concept in 2022. Whether we’re catching up with a friend over coffee, splurging on some online shopping, or even playing one of our favourite online games. It doesn’t matter if you consider yourself a technophobe or technophile, digital payment methods have been with us for well over a decade.
Let us now talk about five cashless payment methods that will become very popular in 2022.
1. Mobile Wallets
Mobile wallets are popular among merchants and consumers because they are convenient, secure, and contactless. You can store your debit or credit card information in an encrypted mobile wallet and pay for products and services securely.
The only downside is that mobile wallets are not as widely accepted as traditional payment methods. But the number of people using mobile wallets to make payments is on the rise.
2. Contactless Credit Cards
The Covid-19 pandemic popularized the use of contactless credit cards because both merchants and consumers feel that contactless credit cards are safer.
Financial transactions through contactless credit cards are faster and save the card from wear and tear. Moreover, using contactless credit cards is more secure than swiping cards.
Currently, few banks issue contactless credit cards. More than 190 million Visa credit cards have the contactless feature. Banks and financial institutions worldwide will launch 300 million more contactless Visa credit cards shortly.
Also, many issuers of credit and debit cards are now issuing contactless credit cards by default and upgrading existing cards with the contactless feature.
Amex states that it implements contactless technology in its products, and financial institutions like Capital One, Chase, and Bank of America present several contactless options.
3. Buy Now Pay Later (BNPL)
Do you want to make an expensive purchase but cannot afford it? You can consider using the Buy Now Pay Later (BNPL) option, which retailers are now offering to their consumers.
BNPL allows customers to purchase products and pay later in installments. The BNPL payment option functions like a personal loan. While some merchants charge interest, most BNPL options are interest-free.
Make sure to read the terms and conditions carefully because the BNPL option may have late fees, loan duration, penalties, and so on. You wouldn’t want to get into an unnecessary debt because you failed to read the BNPL terms.
The BNPL option encourages many consumers to purchase products they would have never purchased without the BNPL option.
4. Cryptocurrencies
Cryptocurrencies and the blockchain technology on which they function are relatively new, and not all consumers understand them. However, cryptocurrency use is on the rise.
Cryptocurrencies double as digital currencies and payment methods. Despite their volatility, investing in cryptocurrencies is an attractive option for investors. Several companies, including Tesla, Microsoft, and others, offer cryptocurrencies as payment options. In the next few months, cryptocurrencies may evolve into a mainstream payment option.
Consumers are increasingly using cryptocurrencies to make international payments. Cryptocurrency transactions are faster and safer. Moreover, users can easily convert cryptocurrencies into fiat currencies.
Another advantage of using cryptocurrencies as a cashless payment method is their anonymity. You do not have to reveal your bank account or credit card details while paying with cryptocurrencies.
5. QR Code Payments
Consumers are increasingly scanning QR codes on their mobile devices to make payments. QR code technology has opened a floodgate of contactless payment opportunities for consumers and merchants.
Scanning QR codes to make cashless payments is fast, safe, and secure. QR codes function in the physical and virtual worlds, making it easier to pay without making contact or carrying cash.
