In the past, people relied on traditional methods of payment like cash and cheques. Such modes of payment were unable to meet rapidly changing consumer demands due to its slow functional pace. This led to the emergence of new digital payment technologies.
The availability of computers and mobiles have not only changed the way we work but also how we manage our financial aspects and payments.
The developing technologies have also led to the introduction of newer, improved services. This may include e-commerce which has led to a demand for faster payment systems.
The Growth of Digital Payments:
The speed and convenience of e-commerce or online shopping have altered customer expectations related to the payments experience. They expect swift services.
The popular smartphone technology has provided customers access to the growing range of services. The apps have enabled quick, secure payments through mobile banking.
All the Payment service providers compete by providing new products and services to their customers.
What are the Trends impacting the Payment Industry?
The advent of faster and secure mobile devices has increased a degree of customer expectations for efficient and even faster methods of payments. Another reason is the lesser amount of fees charged by the card processing merchants.
The availability of instant payments has evolved a new customer need. With the implementation of PSD2 in Europe, it is expected to enable new technology companies to recognize a new opportunity in financial services. Thus, it aims to enhance the competition in the industry and will have an impact on global payment systems.
Though African banks are not being bound in any way to comply with PSD2, these banks have shown great interest as they are able to identify potential for increasing their competitiveness. African banks can start adopting principles of PSD2 at a comfortable pace as there are no timeline restrictions. Also, this does not negatively affect their standard business processes.
Cross-border payments are likely to witness a high degree of growth. It is the cheapest way of transferring money to participating banks within Southern Africa. After a payment is received by the bank, your beneficiary simply needs to go to that bank and withdraw the money in their own currency. In this way, the recipient takes on the cost of the exchange rate rather than you.
Digital payments are on it’s way towards bringing about a radical change in the payments sector with the pace of change and customers’ increasing requirement for increased speed and convenience.
Therefore, we at DPO PayGate are consistently ahead of our game and clients can be certain that they have the competitive edge they need. We provide effective and tailored payment gateway solutions in Botswana Uganda, Tanzania, Zanzibar, Zambia, Rwanda, Nigeria and several other countries in Africa, and across the world.