Transferra Blog & Insights

Current Trends in Payment Schemes Are the current payment systems the same as during the pre-covid era? Simply, I would answer, No! Why? Covid-19 has expedited the digitization of the payments sector. In fact, I believe 2022 is and will serve as a turning point in how consumers and corporations make transactions. Since 2020, digitization has increased throughout business-to-business (B2B), business-to-consumer (B2C), and peer-to-peer (P2P) transactions, but the pandemic’s second full year proves that it will remain, even if patterns of spending stabilize. Stakeholders earning through payment are now striving to keep up with how consumers and businesses transact.  Analog payments plummeted at the start of the epidemic and will likely do so this year as prepaid, debit, and credit cards compete for market dominance. Apparently, physical cards might become extinct very soon, in my opinion. Thus, businesses must guarantee that customers can utilize their preferred payment method because of the growing digitalization. As a result, point-of-sale (POS) developers are under pressure to build multichannel systems that address both front-end and back-end requirements. Payments providers are also rushing to examine new transaction channels, achieve new segments of customers and organizations, and incorporate new equipment and transaction technologies in every part of the sector. This adaptation struggle has seen various trends in payment schemes such as Payment 4. X, biometric authentication, and digital payments. Now, let us look at each trend in detail. Payments 4.X This is a new payment technology, primarily used by PayPal to enhance digital connection and experience, drive data excellence, develop technology prowess and foster collaborative synergies to minimize technical debt, as the diagram below illustrates. As we have experienced in previous financial crises and pandemics, businesses are expected to adjust their operations to continue operating smoothly. Similarly, Covid-19 forced the payments sector to endure a makeover, […]