Payment Methods That Give Merchants an Edge
It’s no secret that cashless and digital payments adoption has accelerated over the course of the last few years. In 2019, 77% of U.S. consumers were using at least one type of digital payment system. By the end of 2020, that figure grew to 78%.
Digital Payments Defined
A digital payment is any payment that is done digitally. For a consumer, that means any transaction that doesn’t need a physical credit or debit card. Payments made through mobile devices and wallets, QR code, and online payments are just a few of the more common ways digital payments are used today.
For merchants, digital payment methods include ways to accept these types of payments. A buyer may use a physical card but if the point of sale is a mobile device instead of cash register, the transaction becomes digital. With so many consumers using these digital types of payment methods, it is vital for businesses to stay up to date on these technologies to stay competitive.
Three Payment Types Merchants Should Watch For
Many merchants have already adopted key digital payment acceptance methods like mobile point-of-sale systems, as well as contactless, digital wallet, and online payments. As technology continues to rapidly advance, here are three digital payment types that merchants may want to consider adding to their arsenal of acceptable payment methods.
1. Biometric Authentication
Biometric authentication is a technological process that identifies the end user through biological characteristics like fingerprint, facial, voice, or eye recognition. This process allows for advanced security measures for the user as these characteristics cannot be forgotten or stolen. And the customer experience is improved because this process is extremely fast and protects a person’s biometric data via an encrypted code.
Although merchants today already see one type of biometric payment via a digital wallet transaction, additional biometric options are poised to become a prominent player in the payments space. According to Forbes, it is predicted that by 2023, 1.3 billion people globally will use a digital wallet solution on their mobile phones making a strong case for merchants to explore biometric payment platforms that look beyond the basics.
2. Social Media Payments
Small businesses who utilize social media to promote their goods and services can now use it to send and receive money. It started in 2013 with the creation of Venmo and now large social platforms like Instagram, Pinterest, TikTok, and Facebook, have evolved to include built-in mobile-commerce options for consumers.
Businesses utilizing social media for payment provide their consumers easy-to-use experiences that are seamless from “browse” to “buy”. And this type of payment method helps companies stand out from the competition, build customer loyalty, and keep costs down by using free social media platforms with minimal processing fees. A recent study of business executives found that 8 out of 10 businesses will sell their products via social channels in the next three years.
3. Crypto Payments
Cryptocurrency is a decentralized currency that is not managed by any financial institution. It is run on the blockchain, a totally secure digital infrastructure that makes it immune to fraud and theft. While many businesses do not accept this type of currency today, cryptocurrency has become more mainstream with consumers and will likely become another payment method merchants should be ready to accept.
There are a few ways merchants can accept online and in-person crypto payment options today:
- Cryptocurrency POS terminals: A variety of providers are now accepting cryptocurrency in the same way they would accept a mobile wallet or contactless card payment.
- Personal crypto wallets: Everyone using crypto will have a wallet where they store their currency. Merchants could set one up to allow customers to make peer-to-peer style transfers for goods.
- Crypto payment plugins: eCommerce sites have a range of options in the form of app and plugins that enable businesses to accept cryptocurrency.
Learn About i3 Merchant Solutions’ Payment Solutions:
Contact us online or call 1-800-621-8931.
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