What Does The Future Hold For Traditional Or Frictionless Payments?
As we entered the 2020’s, traditional payment methods were still a part of everyday life but frictionless payment methods were starting to catch on and become a preferred payment preference at stores around the world.
Once Coronavirus started to flare up, the payments industry was immediately changed because it became clear that most people didn’t want to pay for items like they did in the past and more frictionless payment options started to become a common sight.
Now that Pandemic restrictions are being lifted in most cities, the big question is: will we continue to see a move towards frictionless payment options, or will people go back to opting for traditional payment methods when the Pandemic has officially ended?
Security Vs. Convenience
In the early days of the electronic payment industry it was simple to get cash from an ATM, swipe a debit card at a cash register, or pay for gas at the pump.
Sadly, in the 2020s, those days of worry-free payments are over because there’s a real possibility that anyone can fall prey to a scammer and have their debit card or payment method hacked, resulting in them losing money.
With the rise in security concerns, more consumers in the 2020’s are opting for security over convenience because they know how easy it is to lose a bank account or credit card to a criminal, and potentially. thousands of dollars as well.
A recent study by Paysafe, a prepaid online payment method, found that when asked if they were more concerned about security vs. convenience with their payment method, 34% of consumers said that they were more interested in security.
It’s easy to see why consumers want security vs. convenience with their payment method because it’s not hard to know someone who has had their debit, or credit card, compromised.
Even though security is important, 21% of consumers who were recently surveyed by PaySafe also indicated that they were concerned about the speed and or convenience of their payment transactions. What Will Payments Look Like After Coronavirus? Since the onset of Coronavirus around the world, the global payment industry has seen an increase in the use of mobile wallets, frictionless apps, and online cash. This isn’t expected to change much after the Pandemic, especially since consumers are seeing how easy newer payment solutions are to use and they will continue with those solutions for making their payments in the future.
As with any era in the past, even though more consumers are opting for frictionless payments, it’s likely, there will still be plenty of traditional payment solutions available for those consumers who like to use the same payment solutions that they used in the past.