The future has a habit of being unpredictable; but sometimes, we have a hunch of what’s on the horizon. In this case, we’re talking about the future of payments, and how they are set to change as we know them. Today: we are setting out to answer these questions:
- What’s a virtual wallet?
- How long before credit cards become virtual?
- Are you prepared for the future of payment?
- Are you future-proofing your technology today?
If you have found yourself wondering the answers to these questions, you’ve come to the right place! So, what IS a virtual wallet? Well, it’s basically like moving your physical wallet into your smartphone. Sounds pretty convenient, right? In fact, at some point in the very near future, all of your credit cards, IDs and credentials will be stored electronically in your virtual wallet in your phone. We actually believe that payments as a whole are moving from your wallet to your phone. That means all of your credit cards in the future will be considered e-cards.
So, now that we know what’s happening, it begs the question of when will it happen? Let’s jump into the next question that needs answers: What do you think the timeline is for credit cards to become virtual? To answer in the simplest way possible: It’s already here. In fact, in Singapore, IDs and passports are already virtual. Interested in learning more about this? We found an informative reference on everything you need to know about e-wallets in Singapore: https://www.singsaver.com.sg/blog/mobile-wallets-singapore. If you reside in the United States, you may be wondering how this affects us. In actuality, we aren’t too far behind them! We are estimating about 5-7 years before the American masses will adopt these same technologies. Get ready!
Now that you know what’s coming, and when, can you confidently say you are preparing for the future of payments? If not, that’s okay, we’re here to help! The future is all about giving your customers choices. So let’s break those down: if you’re looking for a mobile wallet, your best bets are Apple Pay and Android Pay. Then, there’s contactless payments, online payments, Bitcoin, recurring payments, card-on-file payments, checks, cash, smart watch payments, and e-checks. According to a financial article written by First Horizon, businesses are increasingly moving toward payments made by virtual cards. According to their research, virtual payments are expected to boom to more than a half a trillion dollars by 2024!
So we know what the future of virtual payments holds, we know when it’s coming, and we’ve discussed the options for you and your customers. Now, let’s figure out if you are future-proofing your technology today. As we take steps to prepare for the financial future, we can’t forget that there are always going to be disruptors entering the payment market. Yes, there will be even more alternate forms of payment. For example, Bitcoin and P2P payments, among others, will add more disruption in the market. And of course with more payment types comes more fraudsters. That’s one reason why open platforms are becoming extremely important. Open platforms allow you to rapidly implement more products and services, rather than having a proprietary point of sales payment system, your provider will alter your payments to keep up with trends and avoid risks.
Now that your questions have been answered, we believe you have the knowledge to be more confident when preparing for your business’s financial future. For more information on this topic and more, contact us to see how else we can help!