The digital payment industry is working hard to convince as many people as possible about the benefits of payments that aren’t standard cash transactions. Companies that offer a multitude of payment methods are showing their customers that they are implementing processes in line with the latest developments in technology. From cryptocurrency to e-wallets, these new payment methods showcase how financial institutions may take payments in the future. So where do digital payments currently stand?
Payments with Cryptocurrency
While for some cryptocurrency may still seem like a futuristic concept, for others it is just another way of paying. The lower barriers to entry for the cryptocurrency industry mean that anyone with an interest can get involved and smaller businesses are able to offer Bitcoin payment methods. The acceptance by some major companies like Microsoft has given cryptocurrency validity in the eyes of cynical customers. Facebook’s short-lived plan for Libra also brought the idea of cryptocurrency in day-to-day life to the mainstream.
More companies than you’d expect to accept cryptocurrency, especially Bitcoin. For example, Wikipedia accepts donations in Bitcoin, while Microsoft allows people to top up their accounts with it. Mobile carrier AT&T uses BitPay to facilitate Bitcoin payments. Leading the way in other cryptocurrencies was Burger King, which began taking Bitcoin payments in 2016. They have also branched out to allow payments to be made using Litecoin, Ethereum, Dash, and Tether. These methods of payments can be found at various restaurants throughout the world, including Venezuela. However some have been short-lived, such as Germany’s acceptance of Bitcoin.
Digital Wallets and Beyond
Since digital payment methods are already being used across a range of sectors. The possibility of using e-wallets is becoming a differential factor when it comes to customers making choices. Online retailers, such as marketplace site Etsy, offer a multitude of payment options. So some vendors can allow payment through e-wallets, especially those who are averse to Paypal. Alibaba and McDonald’s have partnered to allow the fast-food restaurant to offer a wider range of e-wallet payment methods, trial in Hong Kong. E-wallets are also offered for those who want to play online slots and are trying to select an online casino. Potential customers can compare different payment options along with bonuses and device compatibility to decide which site to choose. In India, customers may choose their utility provider in part based on what e-wallets, such as Oxigen Wallet, each utility company accepts. Being offered the opportunity to use an e-wallet as a payment method shows a sign of the company being tech-friendly and forward-thinking.
Moreover, e-wallet payment method Skrill has been adopted by football team AC Milan, whom they sponsor. This visibility has given Skrill a wider platform and is sometimes offered as a payment method where feasible at matches. Which helps more people learn about it. The e-wallet can also be used to make payments on other sites, such as GoDaddy, Skype, and Shutterstock. Taking existing industries that have a digital slant and using them to enable digital payments helps with the adoption of e-wallets and other digital payment methods.
The Future of Payments
The uptake of both cryptocurrency and e-wallets shows a move away from traditional financial institutions. Each year there is a greater increase in those who are going contactless. Choosing a digital bank like Monzo or conducting financial transactions solely in the ether, such as with Venmo. On a global scale, digital payments are increasingly popular, with some countries in Africa such as Zimbabwe and Kenya utilizing mobile payment methods more than traditional cash methods. Digital methods of payment are solving issues that financial institutions didn’t realize they had in terms of speed of service and finance tracking. With a focus on safety and security going forwards, many people are seeing how digital payment methods could actively benefit them.
It’s unlikely that we will ever fully give up cash, but the current landscape of both cryptocurrency and e-wallets is favorable for a hybrid situation in a future where digital payment methods will merge with traditional ones. The progress might be slower than economists a decade ago predicted, but there is no denying that it is being made.
