The average British person makes around 286 deals per year using payment methods, while in the USA, the number average number reaches 376 deals. In Europe, particularly Finland, it is a whopping 448.
Systems facilitating electronic payments are the most common financial products as they became very popular around the world. The days when people had to carry stacks of cash with them limited their purchase power and also subjected them to serious risks of theft are now part of history.
Waves of innovation from banks and financial institutions created cards, and now we have the modern credit card. Mobile payment services like ApplePay and others made the act of paying very easy and secure for all around the world.
Carrying no cash means limiting the threat of robbery. Banks will be safer as the motivation to rob them will drop same as to the cash on hand. Pickpocketing has become an act of history, especially in countries that have easy access to cashless payments and security cameras. Thieves have no motive to steal wallets anymore since they don’t contain cash, maybe some papers and useless plastic cards. A large city like New York, for example, had 23,000 reported pickpocketing incidents in the year 1990. Now, such acts are so rare. The police department no longer keeps track of this crime, instead, it allocated its resources to the acts of stealing iPhones and mobiles
Ironically, virtual payments leave more track than cash payments. Digital funds are easier to track which doesn’t make it a preferable channel for anonymous drug trafficking lords, tax evasion, and terrorism financing.
The future of e-payment authentication methods
1- Biometric Authentication
The biggest challenge curbing online and electronic payment is authentication. Facial recognition is not the only outlet for face authentication, eye scans have long since appeared in sci-fi films as a very successful method of verifying identity, however, the development for a real-world application is already under research. Eye veins are unique, same as fingerprints, which enable accurate acceptance or rejection of the consumer.
Hand veins are also an extra option for body outlet authentication. Vein patterns are mapped in the hand and referenced with the credit card data when a transaction is done. More than one card can be linked to a single credit card, this limits the need for carrying banknotes in a wallet.
2- Selfie Authentication
Developers are currently working on many technical methods to authenticate the entire e-payment process. One of the most intriguing authentication methods uses a tool which the vast majority of consumers already have and use on a regular basis, the cameras on their mobiles
After downloading a special application on the mobile, consumers will have the ability to take a selfie at checkout. This selfie authentication method was tested by MasterCard in 2015. It is expected to take a larger scale later over the coming years.
3- Voice Authentication
Voice authentication is an extra verification way which is currently used by many different banking systems all over the world. To verify account ownership, cards and mobile phones will be linked to the consumer’s voice commands through a certain specialized software, this ensures a high level of authentication accuracy.
Many new trends of e-payment methods are emerging that can substitute conventional and current electronic payment methods, all these payments methods are still under scrutiny, but they are expected to take the whole scene by a landslide in the near future.
Although consumers regarded Bitcoin with suspicion in the beginning, this e-payment technology is now very acceptable on a large scale.
Bitcoin is based on the BlockChain method. It involves integrating a set of transactions into one block of data, encrypting it and then storing it. It is considered one of the cheapest, quickest and most secure ways to transact.
Payoneer gained a strong focus from international merchants and it is very popular in China’s eCommerce industry.
Using this method, consumers can make many payments in several currencies through virtual bank accounts, the whole process is almost instant. Retailers can also manage to bill by features provided by Payoneer.
Receiving funds from other Payoneer user is off charged, while the random transaction charge is 3%.
3- Google Wallet
Google is also joining the bandwagon of online payment methods, there is a new payment method that allows you to receive money from anyone.
Same as PayPal, the only needed personal information is an email address to receive payments. However, Google wallet transfers these funds to the bank account by default.