top of page

Cost-saving

Digital payments are quickly becoming a preferred method of payment across the globe. This is due to their efficiency and speed, which saves time and energy. Digital payments are also cost-saving because they are not subject to the costs associated with printing paper money and distributing it to banks.

Transparency and security

Digital methods enhance traceability and accountability of payments, reducing corruption and theft as a result.

Financial Inclusion

They allow easy access to a range of financial services, such as saving accounts, credit and insurance products, including for those who face any physical struggle to get to a bank.

Women's participation in the economy

They allow women to have control over their finances, providing them with independence and economic opportunities.

Inclusive growth

They benefit all financially excluded people because they unlock economic opportunity, and enable a more efficient flow of resources in the economy.

Benefits that Digital Payments offer

Some kinds of Digital Payments

mPOS

Mobile point-of-sale systems that work through smartphones and other wireless devices to accept payments from anywhere, most common in restaurants and retailers. They were especially useful during the pandemic, allowing for social distancing.

Digital Wallets

Allow users to store payment information so that they can purchase items without having to repeatedly enter their card information. This makes it much easier to make repeat purchases online or in-store. Examples are Apple Pay, Google Pay and Samsung Pay.

Peer to peer digital payments

Allow users to search for other users and perform online transactions between themselves. This solution links the payer and payee’s bank accounts to withdraw and deposit funds.

Contactless payments

Powered by Near Field Communication NFC, this type of payment allows contactless-enabled cards to connect with a device to perform a transaction.

Social media payments

Facebook, Instagram and Pinterest business accounts offer a social shopping solution including in-app purchases. The advantage is that the user doesn't need to leave the platform's environment to make a purchase.

Crypto payments

This type of payment is made using a cryptocurrency wallet, which is a software program that allows individuals to send and receive digital currencies and track their balance. They can be faster and cheaper to process, as they do not require intermediaries like banks or payment processors. They can also offer a higher level of security, as they use advanced cryptographic techniques to secure transactions and protect against fraud.

Open banking apps

Open banking apps allow individuals to access and manage their financial accounts from multiple banks and financial institutions in a single place. They use APIs (Application Programming Interfaces) to connect to various financial institutions and retrieve data about the user's accounts.

NFTs

A non-fungible token is a digital asset representing ownership of a unique item or piece of content. NFTs are typically built on blockchain technology and are stored in a digital wallet, similar to other cryptocurrencies.

Digital Payments

Some people call it “The 3rd Industrial Revolution”, but is better defined as the advancement of technology from analog mechanical and electronic devices to the digital technology available today. 

Wise

A British company based in London that provides international money transfer services. This company operates online and has a mobile app, making it convenient for users to manage their international payments from anywhere.

Related apps

Paypal

General and flexible is an American company with global reach that operates an online payment system that supports money transfers between users and serves as an electronic alternative to traditional payment methods such as checks and money orders. 

Venmo

Allows its users to send and receive money through a simple mobile phone application to another user with a Venmo account. In addition, it has the particularity of working as a social network. 

Zelle

A United States-based electronic payment system owned by Early Warning Services. It has partnered with leading banks and credit unions across the U.S. to bring a fast, safe and easy way to send money to friends and family. Money moves quickly - directly from bank account to bank account.

Video recommendations

What does Digital Payment mean?

Digital or Electronic Payments is the transfer of value from one payment account to another using a digital device like a mobile phone, point of sale, computer, or another digital channel.

They include payments made through bank transfers, mobile money, debit, credit, and prepaid cards.

Some kinds of Digital Payments

mPOS

Mobile point-of-sale systems that work through smartphones and other wireless devices to accept payments from anywhere, most common in restaurants and retailers. They were especially useful during the pandemic, allowing for social distancing.

Digital Wallets

Allow users to store payment information so that they can purchase items without having to repeatedly enter their card information. This makes it much easier to make repeat purchases online or in-store. Examples are Apple Pay, Google Pay and Samsung Pay.

Peer to peer digital payments

Allow users to search for other users and perform online transactions between themselves. This solution links the payer and payee’s bank accounts to withdraw and deposit funds.

Contactless payments

Powered by Near Field Communication NFC, this type of payment allows contactless-enabled cards to connect with a device to perform a transaction.

Social media payments

Facebook, Instagram and Pinterest business accounts offer a social shopping solution including in-app purchases. The advantage is that the user doesn't need to leave the platform's environment to make a purchase.

Crypto payments

This type of payment is made using a cryptocurrency wallet, which is a software program that allows individuals to send and receive digital currencies and track their balance. They can be faster and cheaper to process, as they do not require intermediaries like banks or payment processors. They can also offer a higher level of security, as they use advanced cryptographic techniques to secure transactions and protect against fraud.

Open banking apps

Open banking apps allow individuals to access and manage their financial accounts from multiple banks and financial institutions in a single place. They use APIs (Application Programming Interfaces) to connect to various financial institutions and retrieve data about the user's accounts.

NFTs

A non-fungible token is a digital asset representing ownership of a unique item or piece of content. NFTs are typically built on blockchain technology and are stored in a digital wallet, similar to other cryptocurrencies.

Biometric authentication

Uses biological characteristics, such as fingerprints, facial features, or the sound of a person's voice, to verify a person's identity. Its convenience, speed, and accuracy are the reasons this technology is increasingly being used in payment systems as a way to secure transactions and prevent fraud.

The tech-savvy generation

Gen Z is accustomed to and dependent on the convenience of technology. As they become a larger part of the consumer market, it is likely that businesses and other organizations will increasingly adopt new technologies, providing a faster and more convenient way to make payments, especially for online transactions.

From cards to codes

The EMV technology (Europay, Master Card, Visa) introduced customers to a more secure mechanism for payments. They use temporary codes that are updated for every transaction, this enhances the security of money movement. The future of plastic cards is bound to be overshadowed by cutting-edge payment services that offer more effective methods for customers.

Smart speaker payments

Smart speakers, such as Alexa, Siri, and Cortana, have gained widespread popularity in recent years as a convenient way for users to give voice commands for various tasks. In fact, 35% of users have used these smart speakers to make purchases, including household items, groceries, and clothing. The future of smart speakers looks bright, as major tech companies are investing in the development of advanced versions of these devices.

Machine learning

A type of artificial intelligence that involves training algorithms to make predictions or decisions based on data. This can help identify patterns and trends that may not be immediately apparent to humans, and improve various aspects of the payment process, such as detecting fraudulent transactions and notifying the customer immediately.

The future of Digital Payments

Book recommendations

The World Of Digital Payments: Practical Course (FinTech)
Pavlo Sidelov

“Pavlo Sidelov, the chief technical officer of SDK.finance, public speaker, and recognized author, delved into the current payment tools and how financial institutions can integrate them into their services. For someone with over fifteen years of experience in the fintech industry, you should expect the best from him, and that is what the book seeks to offer.
The “World of Digital Payments” is an eye-opener, especially for beginners, on the informative and compelling guide to digital payments. In this book, there is a lengthy description of various payment instruments in place (today) and how to integrate them with traditional banking services”.

The Innovation Ultimatum: How six strategic technologies will reshape every business in the 2020s.
Steve Brown

“This Innovation Ultimatum, written by Steve Brown, a household name in the financial services industry, is a former Chief Evangelist at Intel. The book contains a full guide and explanation of the technological innovations that will define the present and future of financial technology.
According to Steve’s book, companies must harness these six strategic technologies: artificial intelligence (AI), distributed ledgers, blockchain technology, 5G communication, the internet of things (IoT), and augmented & virtual reality are the drivers of the Fintech industry. These technological innovations and mechanisms are expected to bring significant impact and open new frontiers for businesses irrespective of their industry”.

Bank 4.0: Banking Everywhere, Never at a Bank
Brett King

“The PAYTECH Book: The Payment Technology Handbook for Investors, Entrepreneurs, and FinTech Visionaries By Susanne Chishti. Susanne Chishti focuses on the future of payments (PayTech) in this book. It is the first crowdsourced book in the global payment sector published by Wiley. A range of different authors contributed to the creation of the book, among which are Markos Zachariadis, Robert Courtneidge, Tony Craddock and Susanne Chishti.
Written by leaders in the global FinTech payment sectors, this book is a valuable source for investors, entrepreneurs and FinTech visionaries. The PAYTECH book explains the transformation of the payments industry, the need of better customer experience and offers answers for entrepreneurs, financial services professionals and investors from a diverse collection of experts”.
 

Disclaimer: the information provided is for informational purposes only and is not intended as a recommendation or endorsement of any particular product, service, or course of action.

Close Site Navigation
bottom of page