Numerous Perks Help Propagate Advanced Digital Payment Systems
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he advent of next-generation systems such as e-wallets and payment banks are projected to help accelerate the digital revolution in the payment, financial and banking services.
In addition, various non-banking institutions are now focusing on leveraging innovative technology to improve user experience and provide better digital payment options. For example, non-banking institutions such as Amazon.com, Inc. and Alibaba are offering payment solutions and services to their customers.
And among the tech trends that were very beneficial to digital payment sector are the Internet of Things (IoT), cloud computing, tokenization, biometrics, and ubiquitous connectivity, all of which are expected to shape the way consumers transact in the future.
Based on the mode of payment, the market is further segmented into bank cards, digital currencies, digital wallets, net banking, Point of Sales (POS), and others. However, it is the POS segment which has dominated the market in recent years, owing to its high efficiency, ease of use, and increased accuracy.
In response to the technological developments and to the demand for quick digital payment infrastructure, numerous countries around the world are now making progressive changes in their regulatory framework favoring digital economy.
And the global digital payments market size is expected to reach USD 132.5 Billion by 2025 while registering a CAGR of 17.6% from 2019 to 2025, according to a new report by Grand View Research, Inc. Perk Labs Inc. (OTC PKLBF) (CSE PERK), Alibaba Group Holding Limited (NYSE BABA), Square, Inc. (NASDAQ SQ), PayPal Holdings, Inc. (NASDAQ PYPL), NCR Corporation (NYSE NCR)
As for banking, the segment is continually transforming itself in response to new technology, regulation, and operating models. An important recent example is the rise of banking as a service (BaaS). According to a report by McKinsey & Company, using BaaS service providers - banks, insurers, money managers, payments specialists, and the like - gives the ability to connect to a cloud-based platform on which the end-to-end value chain for a banking product or service could be managed. For example, to avoid the upfront investment and lead time required to develop a proprietary lending solution, the bank can integrate a BaaS lending platform. The digital bank can quickly integrate its applications with the platform operated by the BaaS provider via an API, which frees the bank to focus more time, energy, and resources on its partnership, marketing, and distribution strategy. Thus, the BaaS solution speeds time to market and limits technology development costs, McKinsey explains. The same principle applies for stores, and customers are responding positively. Blackhawk Network conducted new research to explore how U.S. consumers want to pay at POS to provide retailers with greater clarity on how to close the gap of digital and physical shopping experiences. According to the survey, seven in ten shoppers said they are interested in adding cash to an app or digital wallet while in-store.
✔️ Numerous Perks Help Propagate Advanced Digital Payment Systems
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