An overview of the latest FinTech and payment trends likely to dominate the financial industry in 2021
The trends in FinTech such as digital payments have started influencing the financial industry in the last few years. The global pandemic raised the need for our dependence on FinTech and payment innovations. Some of the trends that emerged during the coronavirus such as contactless payments are likely to continue in 2021 as well. Experts in the industry believe that digital payment solutions are all set to stay and grow.
In this article, we take a look at top FinTech and payment industry trends that are likely to become more relevant in 2021. They will also play a major role in increasing customer value and experience for online businesses, eCommerce, enterprise organisations, etc.
FinTech and Payment Trends 2021
One of the industries that had the most impact due to the pandemic is the financial sector. Innovation in the financial industry driven by technology is faster than ever before. The latest trends emerged in the FinTech and payment industry are likely to change the outlook of our current financial ecosystem. Moreover, these next-gen FinTech solutions are predicted to shape the future of payment ecosystem.
The FinTech payment solutions are evolving in developing countries as well. FinTech in India is expected to increase at an estimated CAGR of 20% during 2017-21. Let's take a look at some of these FinTech trends that will continue to expand in 2021 and beyond.
1. Digital Banking
Digital banking gained increasing relevance post the pandemic. It is estimated that the total transaction value of digital payments is expected to reach $6.7 trillion in 2023 at a CAGR of 12.8% from 2019 to 2023.
To meet the rising demands of people, banking institutions have innovated their services in shifting to digital transactions. Furthermore, banks have started collaborating with FinTech companies to enable faster digital transactions and a better user-experience.
2. Mobile Payments
The use of smartphones and internet has skyrocketed in the last few years, especially in developing countries. Country like India is expected to have over 500 million internet-enabled smartphone users by 2023.
Mobile payments now have a place in multiple methods including NetBanking, payment through UPI getaways, QR code payments, etc. Also, most e-commerce platforms now accept online payments further escalating the trend of mobile payments.
3. Paycheck disruption
Firms are now interested in systems wherein consumers can receive better payday options. As a result, they receive their payments before their scheduled payments without payday loans. Moreover, automated systems for pay checks facilitate ease and convenience in operations of an organisation.
FinTech trends of pay check disruption facilitates employees to access their payday amount before time. This works entirely in favour of the employees - who can secure their financial stability quickly without having to worry about salary dates. Moreover, businesses don't lose precious employees over financial matters
4. Real Time Payments
Real-time payments is one of the leading trends in the FinTech and payment industry in 2021. Moreover, as businesses expand globally at a rapid scale they have become a necessity in payments infrastructure. They allow the beneficiary of a particular transaction to receive funds immediately facilitating convenience and ease in global payments.
Real-time notifications of transactions are also made available. Invoices, messages, and account statements can also be accessed digitally. XanPay facilitates a convenient way to conduct instant global transactions with a low transaction fee. Moreover, its payment solution can easily be integrated into the current infrastructure and businesses can route their overseas payment cheaper than ever before.
5. NFC/ Contactless payments
Contactless payments evolved as a FinTech trend after the coronavirus pandemic. Payment trends such as Near Field Communication (NFC) have helped cater to contactless payments. It provides a secure way for enterprises, large and small, to address security concerns along with accessing convenient tap features.
It has helped businesses to improve convenience, and payment security amidst the pandemic. With the inception of contactless payments, merchants can now depend on enhanced security and quick payments. It is highly likely that the trend of contactless payments will continue in 2021 and beyond.
Cryptocurrencies facilitate an innovative way to send digital currencies on a peer to peer network without any intermediary organisations like banks. Digital currencies like Bitcoin leverage blockchain technology to enable instant digital exchange without any limits on geographical boundaries.
Furthermore, as cryptocurrencies do not require a middle-men, transactions in tokens can be conducted with minimal transaction fees. Crypto has now established itself as a new asset class which is expected to pick momentum in the coming years.
It suffices to say that FinTech has seen significant changes in the last few years. It has become a necessity to invest in the new technology to meet the growing demands for a fast, convenient, secure, and reliable payment solutions. FinTech solutions and the growth in the overall payment ecosystem have always been interdependent, and they continue to be so.
Additionally, FinTech trends like real-time payments have now become increasingly relevant with global businesses. These solutions have become a necessity to facilitate easy and convenience to your customers. XanPay has helped customers all across the globe to engage in innovative, reliable, fast, and secure payment solution such that it can easily be integrated into your current ecosystem.