How are the ways people are making payments changing?
Ever since this little thing called the internet was born, the way people pay for things in their everyday life has changed more as each year passes. In fact, countries such as Canada, the U.K., France, Norway, Sweden, and Australia found that in-store cash payments fell by 50% or more in 2020. In the United States, it is expected that by 2024 cash payments will only make up 10% of in-store payments, and 13% of payments worldwide. So what’s the deal? Why are we relying on our phones and a mobile wallet to replace the way we have been paying for things for years?
Applications from the Google Play Store and the Apple App Store have transformed the way we purchase everything from takeout to the little things that we find around our homes. Users have become more confident in the security of their phones with the help of facial recognition, fingerprints, and the multitude of other forms of security that are found in smartphones. When you lose a wallet containing cash, that money is gone forever (if there is a phone number you can call to claim lost cash, please let us know). If you lose your phone, your data is easily protected by a passcode and other security features.
Over the years there has been a drastic increase in reward-based online transactions. Many credit card providers reward their users for processing payments online, further contributing to the drastic shift from cash to online payments. While many users have utilized the rewards feature, and ease of use of online payments, many have expressed concerns of security of information and privacy in regards to their personal data. For the most part, U.S. law doesn’t limit the personal information institutions can collect about consumers and what they can do with that data. This means that the importance of encrypted data, and payment processing transparency is more important than ever before. As companies begin to provide online payments, there is a responsibility that comes along with it - to educate their customers on the security of their data.
It’s hard to believe that online transactions and smartphone payments haven’t established much tenure. While we have only seen online payments truly skyrocket in the last few years, it is very evident that this trend is not likely to end any time soon. As more people begin utilizing the security and ease of use in online transactions, we will also see an increase in security, as well as federal regulations in order to ensure the safety and security of customer data.