One of the biggest changes to the financial and banking industries in recent years has been the rise of mobile payment platforms. The COVID-19 pandemic caused a significant rise in use of digital payments, as people sought to avoid contact with cash and cards. This trend has continued into the post-pandemic world, as more and more people are using their smartphones to pay for everything from restaurant tabs to gas for their cars. As mobile payment adoption has grown, so has the number of banking and financial institutions looking to implement them.
Aside from the pandemic, there are several other reasons for the rise in digital payments. First, there is the increased awareness of the risks associated with carrying around physical cash and cards. Secondly, there is the convenience factor – it is much easier to pay for something using your phone than it is to fumble around with your purse or wallet. There is also the fact that many businesses are now offering discounts and rewards for customers who use digital payments.
Other than convenience factor, digital payments have also become much easier for consumers in recent years. According to ACI WorldWide’s 2022 annual pulse report, in comparison to last year, 45% more customers say they made a payment using a mobile wallet in 2022. With the advent of apps like CashApp, Zelle, and Venmo, paying for goods and services online has become a breeze. Gone are the days of having to write out a check or use a money order to pay for something online – now, all you need is your phone or your computer, and you can make a payment in just a few clicks. This convenience has made digital payments much more popular than traditional methods and has helped drive the growth of e-commerce around the world.
However, digital payments are not just convenient – they are also more secure. When you pay using your phone, the transaction is encrypted, and your details are not stored on the merchant’s system. This reduces the risk of fraud and identity theft. This rise in digital payments is good news for businesses and consumers alike. For businesses, it means they can save money on processing costs and reduce the risk of fraud. For consumers, it means they can enjoy greater convenience and security when making payments.
This rapid rise in use of digital payment methods is causing lots of market disruption within the financial services and banking industries. There is currently an arms race going on to see who can produce the best, easiest to use, and most user-friendly digital payment platform. This in turn is causing a talent shortage in the financial IT space. The developer market is tight enough as it is, and then add in specialized fintech knowledge, and it gets even thinner. In order to keep up banks need to come up with detailed hiring plans and make their business a more desirable place to work for these developers.
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