In recent years, there has been a shift when it comes to the use of digital payments. Reuters highlights how the use of digital wallets and payments has been steadily rising since 2017. Today, these alternative payment options are now being used by billions of consumers from all over the globe. Because of its success, more and more companies have developed a number of alternative options for consumers within these channels.
Increasing adoption of cryptocurrency and digital currency
Cryptocurrency has slowly become part of everyday life. So much so that we even listed cryptocurrency as one of our ‘Hot Stocks to Watch in 2019’. This is promising as there are several reasons why cryptocurrency, particularly Bitcoin, can be a game-changer. Firstly, cryptocurrency appeals to the younger generation while providing greater security. Cryptocurrency can also largely reduce and potentially eliminate any additional transfer costs, leading to savings for consumers. In addition to all of this, they also benefit those in third-world countries who don’t have access to traditional bank accounts. These factors have to a more mainstream acceptance of cryptocurrency. In fact, the Supreme Court has even lifted The Reserve Bank of India’s ban on dealing with cryptocurrency.
The growing popularity of branded credit cards
With the rise of online shopping, customers are turning to credit cards as a popular payment option. A feature on how to build a good credit score by Petal explains how most major retailers often have their own store credit cards, which offer store-wide discounts at the cost of higher interest rates and lower credit limits. While they can promote greater brand loyalty, they offer limited benefits for consumers compared to regular credit cards due to their lack of flexibility. This is because they can only be used in certain locations and with certain brands. On the other hand, being co-branded does away with this problem. If the card is co-branded with Mastercard, Visa, or American Express, it can be more widely used. This is why co-branded credit cards are steadily growing in popularity, drawing in consumers with desirable rewards options.
The rise of e-wallets and mobile payment apps
Unlike bulky physical wallets, e-wallets and apps can be electronically stored on your mobile phone making them much more convenient for travel. Entrepreneur summarizes the various benefits of digital wallets, noting how they are rapidly evolving to adapt to the needs and lifestyles of their consumers. Unlike card payments, they allow instantaneous payments online and make it easier to keep track of your spending. They also come with promotions, and cashback rewards, and enable you to avoid expensive transaction fees. One innovative feature of e-wallets is their seamless integration with fitness wearables, such as the Apple Watch and Garmin models that enable you to make payments with these devices as well. Something that users should be aware of is the possibility of cybersecurity threats when it comes to inadequate password protection or poorly encrypted payment channels.
When it comes to keeping yourself updated with the latest digital payment trends, it’s all about being careful with regard to any security threats and hidden fees that accompany these platforms. Being mindful of your spending habits and maintaining your safety and privacy are paramount to the convenience that these cashless methods provide.