As we begin a new year, many people are looking ahead to anticipate what 2020 will bring. If you’re involved in the payments industry, then you’re undoubtedly wondering where you should focus your efforts.
After all, the industry has gone through massive change over the past decade, and you can expect that more transformation is coming. Here are four payment trends you need to know about in 2020.
4 Payment Trends for 2020
1. A decrease in cash payments
Globally, people continue to shift away from using cash. According to McKinsey & Company, cash transactions decreased from 89% to 77%. And cash is no longer the most frequently used currency in the United States.
There are many reasons for the decrease in cash currency. Cashless payment options are safer for consumers and businesses and are far more convenient. The shift away from cash payments is not necessarily a new trend, but it will pick up speed in 2020 and beyond.
2. P2P apps
In the coming year, you can expect to see an increased focus on convenient and seamless payment options. There is no better example of this than the growth of peer-to-peer (P2P) payment apps, especially among younger generations.
These apps allow consumers to send money instantly, just by entering another person’s email address or phone number. Venmo, the Cash App, and Zelle are some of the most popular P2P payment apps available. You can expect more of these types of apps to pop up in 2020.
3. Invisible payments
Invisible payments are the ultimate form of customer convenience. Imagine entering a store, picking out the items you want, and then leaving without ever having to stand in a checkout line. The money is automatically taken from your debit or credit card, and the store emails you a receipt.
Amazon started this trend when it opened its flagship store, Amazon Go. The company plans to open 3,000 Go stores across the U.S. It’s expected that these stores will bring in an additional $6 billion in revenue.
Other retailers will begin to follow suit when they realize the convenience and revenue potential that comes with invisible payments.
4. Increased focus on security
As the number of payment options continues to increase, consumers will become more concerned about keeping their payment information safe. One survey found that 30% of consumers are very concerned about their payment security, and 58% are somewhat concerned.
Businesses that don’t take payment security seriously will be left behind by other payment service providers.
In 2020, consumers will carry less cash, look for convenient payment options, and choose service providers that keep their data safe.
The massive growth in cashless options presents both a tremendous opportunity and responsibility for businesses of all sizes. Companies that want to get ahead in 2020 need to focus on customer safety and improving the customer payment experience.
To your success!
Written by, Brian Johnson