The future of payment technologies by 2025
Digital wallets with fingerprint scans are soon going to hit Australia and cash is predicted to cease existing in the next decade.
Many of us are scratching our heads wondering what’s next in the world of futuristic payment methods. With 80% of us now using smartphones to purchase products, and the virtual reality industry set to become a $7 billion industry by 2018, it is clear we are embracing the wild ride technology is taking us on.
It may sound like something straight out of The Jetsons, but eye scanners and fingerprint and facial recognition methods are fast becoming a reality. Bjorn Behrendt, Chief Marketing Officer at Mint Payments says, ‘It’s an exciting period for both consumers, who drive the innovation and businesses, who try to keep up, because these processes will revolutionise the world of payments as we know it today. Not only will they be faster and more secure for customers, but for businesses it will mean added automation, better service, quicker processing times and improved cashflow.’
Products such as tiny mobile EFTPOS machines that connect to any smartphone or tablet via Bluetooth and cardless ATM transactions are cutting-edge now, but this is actually just the tip of the iceberg when it comes to state-of-the-art platforms being predicted by 2025.
‘Small-business owners should upgrade to a contactless terminal now, since the next wave of payment innovation is going to hit Australia in a few months with digital wallets such as Apple Pay, Android Pay and Samsung Pay launching soon. Australians will embrace these technologies and they will completely leave their cash and credit cards at home moving forward,’ says Bjorn Behrendt.
He continued by sharing some futuristic finance technologies, and explaining how they will benefit us in the years to come, leading up to a complete transformed payments world by 2025.
If you aren’t a fan of lines, this one is for you! New payment systems will use RFID chips paired with iBeacons or similar technologies detailed above to scan and purchase items without you even needing to go to a register. Simply pick up a product from the shelf and walk out of the store, leaving the scanners and systems to do the rest!
Facial features, fingerprints and voices are not traditionally associated with credit cards, but moving forward we’ll be able to pay using our unique features. Systems that are able to scan and authenticate our distinct characteristics – such as pupils, voices and fingerprints – will not only make payment processes more convenient, but they’ll add a very tight element of security. Imagine standing in front of a parking meter that recognises you through a high-resolution camera with your name asking you how long you would like to park!
Most of us transfer money to friends or family on a regular basis, but they are waiting up to one business day for the cash to come through, which can be frustrating. Soon however, smartphones will be able to process these transactions instantly. Simply by having two smart devices in close proximity, this new technology will allow us to swap money from one person to another within seconds. Imagine you need to share a $200 bill at the pub with three other friends. Your smartphone will know that your friends are close by and a payments app will offer you to receive and split the bill by simply sending a quick text message to the three contacts of your close by, who simply reply with an OK to initiate the payments based on overlay services of Australia’s future New Payments Platform (NPP).
With the looming launch of Apple Pay not only for iPhones, but also for the new iWatch in Australia, wearable technology is taking on an exciting new dimension. A simple wave of our wrist will soon be all we need to pay at a register. This technology also has the potential to move beyond traditional accessories like watches and take the form of nondescript necklaces, bracelets and rings to promote additional easy to adopt security.
Imagine if we didn’t need to carry a wallet around with us, ever! Well, in the future it will be possible for us to have a custom microchip implanted in our body that stores all of our personal details. With a small microchip, the many inconveniences associated with forgetting our wallets will be erased forever, with almost limitless storage and capabilities all in one.
The impact that block-chain based digital currencies similar to Bitcoin could have on the global economy are too far-fetched for our little crystal ball to comprehend, but just try to imagine a global online shopping world without the hassle of currency exchange rates, with full price transparency for consumers and an independent currency without the risk of inflation. Imagine a currency that is decentralised like the Internet itself with a fair value that cannot be influenced by corrupt governments or central banks with controversial fiscal policies to tax the people. Just imagine that.
The convenience of futuristic financial payment technologies will also move beyond humans themselves. Just like the e-tag has revolutionised toll payments, small devices will be installed in vehicles to allow us to pay for things like petrol, drive-through food and car washes without ever having to get out of the car. It may sound far-fetched now, but one day our cars, bikes, and trucks could very well be our own personalised financial devices and they surely will all be connected to the internet, like the little dash button next to your toilet seat to replenish and pay for new toilet paper from Amazon.