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Payments are a huge part of everyday life, which is why technology seeks to revolutionize the way payments are made. As such, digital payments inhabit a large sector of the Fintech industry. Traditional payments face various issues, and companies are now implementing technology to overcome these problems. There are various payment methods available, such as mobile wallets, social payments, and PayPal. Millennials are one of the main drivers of the digital revolution, with 40% of their purchases made online; digital payments now make this process smoother than ever.
Digital payments are becoming increasingly popular due to high levels of mobile phone usage. It was estimated in 2016 that 62.9% of the world’s population owns a mobile phone – many technology companies recognize this and look to push financial services through mobile platforms. Companies such as Apple and Samsung have already created digital wallets for their devices and continuously seek to find new ways to improve and introduce new features such as using the digital wallet on other applications. Many social networking companies are also entering the market and are offering ways to transfer money over social networking platforms. Companies such as Facebook and Snapchat have already introduced payment options that allow users to send money on their respective sites.
QR payments are another notable contender. These are performed by scanning a code provided by the merchant with a mobile app. The customer then enters the payment amount and proceeds to send the money.
China has currently adopted the use of QR Payments in an attempt to push for digitalisation.
This method is more secure than many other methods that do not use a card. It is also possible to use Bitcoin for sending and receiving QR code payments. In China, most transactions are completed by scanning QR codes, from rent to meals and taxis. Currently, the mobile payment market is ahead of the rest of the world and worth a massive RMB 40.36 trillion. China aims to further promote digital payments in order to ensure transactions become faster, easier, and more secure.
In terms of GCC countries, many governments are pushing for improved efficiency and an increase in innovation within the economy to improve the satisfactions of citizens, tourists and residents. Countries such as the United Arab Emirates have already begun to roll out solutions to move the country from cheques to digital transactions. Digital payments such as Samsung Pay and Apple Pay have become increasingly popular, and in the coming future the UAE will introduce more solutions that will facilitate evolving into a cashless society.
The potential of digital payments is still relatively unknown but the technology is currently making huge innovative leaps within the financial industry. It is expected that digital payments will be used primarily to solve current problems, but also that many countries will follow in the footsteps of China and introduce more digital payment methods in order to aim for a cardless and cashless society. The GCC in particular is pushing for change and digitalization, with the UAE aiming for an increase in digital payments.
Tagged:
- digital payments, financial inclusion, global
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Omar Mansur
Tech enthusiast and disruptive strategy expert with a strong passion for exploring innovation and making a difference.
