Introduction:
With the comprehensive e-commerce platforms and businesses in the global markets, digital payment gateway has become critical. We all are seeing rapid growth and advancement in the payment industry, in which there was development, regulation and innovation in the previous year in the aspects of contactless payment, Secure Remote Control (Click-to-pay), Buy Now and Pay Later(BNPL), and other integrations.
With the prevailing trends and technologies and ever-changing customer behaviours, the payment sector has to change time-to-time to provide a seamless experience to users, says NTT DATA Payment Services. From the rise in digital wallets, cross-border payments, CBDC, PAs, and PGs to open banking and financial services, we have covered you for 2023. To get an insight into the outlook of future payment, continue to read the blog.
Top six payment trends and technologies to watch in 2023:
If you take the payment industry, 2021 focused on growth and sales and 2022 prioritised cost-cutting and survival. Now, the new bang year 2023 is all about achieving stability. With the current and challenging macroeconomic headwinds, payment issuers and acquirers are pushed to rank revenue growth and operating efficiency first, followed by sustainability. However, digital payment is on exponential growth.
With the anticipated massive growth and innovation in the payment system, it is an exciting year for the industry players (payment providers). Amidst the continuity of digital transformation initiatives, here are the six popular payment trends and technologies you should know in 2023.
– The rise in Digital wallets
Since the emergence of cutting-edge payment technologies, the payment industry has undergone visible and significant alteration. Just like how cashless payments have changed to card usage and have progressed to e-wallets and fiat money to cryptocurrencies, the digital wallet is on the swirl to impact the payment industry.
As per the report by FIS (Fidelity National Information Services), in 2023, digital wallets will surpass the cash payment mode. People using cash, Credit, and Debit cards will considerably reduce, and usage of digital wallets and BNPL (Buy Now, Pay Later) will increase.
A hike in the usage of digital wallets makes it easier for people to carry out financial transactions smoothly since there is no need to remember the PIN and CVVs of their physical cards. Digital wallets are now adopting a ‘one-stop wallet’ regime, which allows people who don’t have a particular wallet to also use it by scanning the QR code.
You can now store your prepaid, credit, debit, fitness club and other country-unique identification cards like PAN, Aadhaar, etc., in a consolidated format in your digital wallet, making it not needed to carry them physically.
– New entities operating as PAs/PGs
With the Reserve Bank of India’s guidelines to regulate Payment Aggregators (PAs) and Payment Gateways (PGs), it has made all the PAs to get accredited and authorised by the Apex Bank. It has also directed other non-banking companies providing PAs to apply for authorisation.
The RBI guidelines limit PAs and other merchants from storing their customer’s card credentials in their business database. People using cards for transactions should enter their details fresh every time for data security purposes, including the 16 digits card number, CVV and the expiry date.
In 2023, we can welcome new entities operating as PAs and PGs after getting licensed from the Central Banks. The move is beneficial for FinTech and payment entities to streamline the business models and see profits.
– Operationalisation of UPI on Credit
When the National Payments Corporation of India launched the concept of UPI on Credit to hike online payments in 2022, it was sure that people would feel less pressure since they need not worry about carrying their credit cards but rather add their RuPay Credit cards to their UPI and make payments effortlessly and instantly, faster.
2023 will be a year to turn the theoretical concept into empirical reality, where customers will link their credit cards to their UPI and use them for their payments. Being a year of innovation and new ideas, we will see immense new use cases and technologies that attract new customers to the digital ecosystem.
– CBDC becomes a mainstream product
2023 will be the operationalisation of the Central Bank Digital Currency. The current year will witness the digital form of the country’s fiat currency used innovatively to help cross-border payments look seamless.
Over eleven countries have launched a pilot program of CBDC and are exploring the research and developmental phase. Having bagged the spark globally, CBDC will be a formidable competitor to India’s UPI.
– Development in cross-border payments
International payments enabling cross-border taste and investment play a prominent role in the global economy. In 2023, predictions are that cross-border payments will get integrated into UPI. Financial Technologies, digital banks, big techs, card networks, closed-loop networks, payment service providers and non-traditional players will drive growth in cross-border transactions.
The Reserve Bank of India has released a report about working on using the UPI for cross-border transactions across jurisdictions in 2021. Chances are to witness the operationalisation of the same in the upcoming financial years.
– Open banking and open finance
Open banking is on the hike because it builds healthy competition in the financial markets, benefiting customers. Open banking helps banks provide digital services, fair pricing and better security, rooting for open finances. It also aids cross-industry business models like B2B2C and B2B2B apart from B2B and B2C.
In 2023, an open finance ecosystem will expand, and many banks and financial institutions will emerge towards sustainability and a creator economy, enhancing more Fintech innovations and collaboration.
Also, personalised offerings by open banks strengthen the banks and usage of fraud management practices, giving a safe and secure space for the customers. It bestowed users with transparency and flexibility if built with secure integrations.
NTT DATA Payment Services:
NTT DATA Payment Services is Asia’s leading digital payment service provider that caters to various industrial and banking segments across the globe. It provides 360-degree payment solutions to customers and has over 100 payment options. It is the one-stop payment solution to enhance businesses and paves the way to a seamless and hassle-free transaction experience. Built with a bulletproof security system, NTT DATA Payment Services has served over 6 million merchants.
Why should you choose NTT DATA Payment Services?
- It has high success rates and ensures uninterrupted cash flow.
- It accounts for instant settlement and has multiple payment options.
- It has easy EMI solutions and provides them for more than ten banks
- NTT DATA payment services’ solutions power everything from broking and crypto to Government and hospitality.
- Its advanced encryption system assures users of the safest and most secure transaction experience.
- Its customer care services activate 24*7 to help customers with all kinds of queries.
Conclusion:
With the increasing Gen-Z-focused payment options, the future of financial services will likely be more innovative, with greater efficiency, security and convenience. With the rising use of blockchain technology and contactless payments, the cash flow will be even more transparent and secure in the upcoming years, fostering a seamless and integrated payment system.