The rapid evolution of technology, coupled with the growing demand for speed and convenience, is steering the future of payment technologies into a new era of innovation. In this article, we delve into the transformative landscape of payment technology, exploring the intricate balance between speed and security that defines the future of paytech.
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Speed versus Security
In the ever-changing world of payments, Paul Staples, Head of Embedded Banking at ClearBank, emphasizes that "The future of payments is unfolding in ways that were once considered unimaginable". The modern payment ecosystem boasts various options, from mobile wallets to biometric authentication, highlighting the need for a balance between speed and security.
Drivers of Future Paytech
Peter Wood, CTO at Spectrum Search, identifies three pivotal axes shaping the future of payment technologies: cryptocurrency, artificial intelligence (AI), and blockchain. Wood states, "Cryptocurrencies, spearheaded by bitcoin, are progressively being recognized as a legitimate alternative to traditional currencies,". Cryptocurrencies offer a decentralized alternative, reducing fees and enhancing transaction speed. Blockchain, the underlying technology of cryptocurrencies, promotes transparency and diminishes fraud. Wood continues, "AI and machine learning streamline payment processes, predict consumer behavior, and fortify security," marking a transformative era in paytech.
Addressing Industry Challenges
Acknowledging the challenges within the financial industry, businesses are deploying cutting-edge technologies to combat issues such as payments fraud. The adoption of AI, blockchain, and cryptocurrency is helping address longstanding problems. According to American Express research, almost a third (29%) of the surveyed UK businesses reported an uptick in payments fraud. Almost half (45%) of the firms reporting an increase in fraudulent activity have introduced new security and anti-fraud measures, while one third (34%) have taken steps to bolster current payments security capability. Respondents indicated they spend an average of 7% of annual turnover on fraud protection. 1
Paytech's Response to Automation
Automation, a crucial aspect of the evolving payment landscape, is gaining traction as businesses seek efficiency and security. Over the past two years, 69% of businesses have considered or adopted automation to "save time, minimize errors, and reduce expenditure." 2 As the industry embraces technological advancements, businesses are prioritizing secure and seamless payments to navigate the digital era.
Future Trends
Looking ahead, ClearBank's Paul Staples predicts several trends shaping the future of payment technology, “Looking forward to the payment landscape 20 years from now, several trends and developments are poised to shape the future of payment technology,” Staples said. Biometric authentication methods such as facial recognition and fingerprint scans will become even more prevalent and directly part of the payment journey. Quantum-resistant encryption will evolve alongside advancements in quantum computing, ensuring payment security. Payments will seamlessly integrate into the Internet of Things (IoT), becoming an integral part of daily life. Additionally, sustainability and environmental considerations will drive the adoption of eco-friendly solutions to minimize the carbon footprint of financial transactions.
The future of payments hinges on a delicate balance between speed and safety. As the landscape evolves, biometric authentication, quantum-resistant encryption, and environmental, social, and governance (ESG) considerations will redefine payment technologies. This forward-looking approach ensures that payments remain both fast and secure, enriching daily lives while safeguarding financial well-being. In the unfolding brave new world of paytech, the focus on safety stands as the cornerstone upon which future innovations will be built.
FOOTNOTES:
- "UK Businesses Modernising to Enhance Security and Counter Fraudulent Activity", American Express, October 05, 2023. American Express
" Amex research: UK businesses boosting security to counter fraud", London Loves Business, October 04, 2023. London Loves Business
Author
Writing for Touchsuite, Jonathan Bomser, is a technology and marketing expert with over 30 years of industry experience. He is a businessman, writer, artist and musician. He has vast knowledge of finance, business and technology. Jonathan is currently founding, investing and board advising in several early stage and start up companies. Jonathan has been involved in Technology, Media, Marketing and Advertising for a multitude of Fortune 500 companies for over 30 years.He has served as a strategic, creative and marketing executive and consultant for both parent companies and subsidiaries at AOL, The National Football League, The Walt Disney Company, NBC, MTV, Viacom, Time Warner, USA Today, Alliance Entertainment, WPP, Penguin USA, along with numerous other established companies, start-up ventures and reorganizations.Jonathan was the CEO and Founder of BigLinker.com, which was acquired by Ziff Davis (Nasdaq: ZD) in 2021, CEO and Founder of TownTarget.com from 2013-2015 which was acquired by Touchsuite/American Bancard in 2015 and previously Bomser Payan Interactive Agency from 2008-2012 which was acquired by Big Step Interactive/Digital Marketing Associates. Jonathan was the key developer for the technology used to power many of their successful digital campaigns. Clients included national brands such as Adidas, PNC Bank, Massage Envy, European Wax Center and others.Jonathan has also helped manage the technology initiatives, creative strategies and business development for AIM Pages.com, AOL’s Social Network. Since May 2006, Jonathan has also been consulting for technology, marketing, sales and creative strategies for Veoh.com, BigString.com, Vuguru.com and others. Before consulting for these major companies, Jonathan was a principal in En Pea Productions,Inc. which was a television production company focused on reality television, commercials and music videos. Jonathan is also the former Board Member, CEO and President of WoozyFly.Inc. Trading on under the symbol WZFY.Jonathan's current projects at AccountSend.com, VocalChimp.com and CoolValidator.com
Touchsuite is located in Boca Raton, FL and is a payment processing and point of sale company that specializes in merchant accounts, point of sale systems, Grubbrr self-ordering kiosks.
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