The world of payments has undergone significant transformations over the last decade, especially with the pandemic. As it grows more complex, companies require customized solutions to help accelerate revenue and forge lasting relationships with customers
or clients. It is essential for businesses to break from a holding pattern and explore beneficial options. A recession may be on the horizon this year but smart business leaders need to resist knee-jerk reactions and remain focused on the organization’s mission
and strengths. With that in mind, here are the top four digital payment trends to look forward this year:
BNPL Increases by Demand
Today’s economic barometer is positioned to fuel the Buy Now Pay Later (BNPL) option. It is becoming increasingly popular as a means of shopping because it provides the opportunity to divide payments and pay over time, which greatly helps manage expenses.
Much of the country lives paycheck to paycheck, and with skyrocketing costs at the gas pump, grocery store, restaurants, and retailers, BNPL is a valuable option in a recession. More than 111 million consumers in America would be interested in using BNPL
to purchase high-value services (Source:
PYMNTS), adding that 29 million consumers utilized this payment option last year. The way in which we pay will continue to evolve in 2023, with BNPL becoming a preferred option.
Real-Time & Faster Payments Become the Norm
Real-time payments (RTP) have grown 39 percent in 2021 alone and volumes exceeded 118 billion globally (Source:
Alacriti). Millions of customers expect and demand an opportunity to make a transaction whenever they want. It’s the new normal in today’s business world.
RTP is any account-to-account fund transfer that allows for the immediate availability of funds to the beneficiary of the transaction. Once a payment is authorized, the payer’s account reflects the deduction of funds immediately. This form of pay is irrevocable,
so once a payment is made the payer cannot deauthorize a transfer. Benefits include instant access to funds and more convenient electronic payment options, expediting the refund and disbursement process, and providing consumers greater visibility into their
financial situation, reducing the risk of overdraft fees and other penalties.
Text Message is Still King
Text messages remain the preferred choice of fast communication, and that translates directly into B2C relationships in 2023. Payments and communications via text message will remain a priority in the financial world. Invoices can be sent via text and customers
can make payments using this simple method in the palms of their hands using any method—or by responding with “yes.” Two-way text messaging allows consumers to ask for more information or customize automated responses.
SMS communications connect the consumer to the business owner and makes the consumer feel more involved in the process. It is the perfect tool for companies that want fast payment using the most modern, convenient payment method available.
Shopping via mobile device today is an expectation. In Q3 2022, they already account for 73% of retail traffic and generate 63% of online shopping orders (Statista).
Consumers will continue to prefer it as their preferred shopping channel, and one-click mobile payments make checkout seamless.
While these are only a few trend predictions, 2023 will be a year of innovation and surprise as the world of payments becomes a melting pot of ideas. We can all expect to see evolutions in the way we pay and communicate with businesses and customers.