Top 5 trends in payment technology industry in 2015

#2015 has been the year which saw some path breaking innovations, rapid adoption and steady growth of the Mobile Payments Ecosystem in India. With wider adoption of smartphones and Internet penetration, people in the country have finally started realizing the benefits of #technology in online payments space. We take a look at 5 #trends that have made a huge impact on #payment technology #industry in the recent time.

1. Mobile wallets & Checkout
There was an increased acceptability of the most recent online payment innovation ‘mobile wallet’. Words such as ‘wallet’, ‘cashbacks’, ‘wallet offers’ etc. have become a part of our daily life. All thanks to the millions of dollars which have been burnt at a breakneck speed in advertising and praising the merits of new age online payment system. Especially the advertisements around the mobile wallets are way too luring for anybody to fall for it due to the benefits that are being offered.

Consumers appreciate mobile wallets that enable faster checkouts. In recent times, it has been observed and established that businesses offering a seamless payment experience have a tendency of picking up faster in the market. Buyers tend to lose interest in the purchase if the payment process is too complicated. Accepting payments from customers isn’t as easy as clicking a switch and watching the money flow in, however it is not necessary that it be complicated either.

In this regard, PayUmoney made some noise with its checkout feature.

2. Faster mobile payments with focus on reducing transaction time
With massive shift to mobile that has happened in such a short time frame, opportunities in m-commerce as well as in other areas have multiplied. This is a time when online payment companies would be taking e-commerce companies to the next level.
Few online payment companies have already started working in this direction by thinking about what problems they can solve for m-commerce by providing best online payment experience on mobile screens.
The launch of ‘one tap payment’ by PayUbiz is one such technological breakthrough which sent ripples across the booming online payments industry. The patent pending and first of its kind tech innovation in the payments world is another step which will ensure a robust online payment system. The PCI-DSS complaint and patent pending ‘one tap payment’ is a combination of 4 different tech innovations that together provide a seamless online payments experience to the users.
Store Card Vault: This feature is the first of seamless payment journey, ensures that the consumers don’t have to go through the pain of putting in the 16 digit card number repeatedly.
No CVV: The heart of creating a seamless one tap payment solution was doing away with the process of repeatedly entering the CVV. The innovative patent pending and PCI-DSS certified technology developed by payubiz provided a solution to it.
Auto OTP read and submit: Furthermore the second factor authentication of OTP, gets auto read and submitted leading to the completion of a seamless one tap payment experience.
Magic Retry: the magic continues even when there is a network issue and the magic retry feature picks up the transaction from the point where it stopped.

3. Focus on improving mobile transaction success rates (impacted due to poor network)
In India, network congestion, signal error, slower internet speeds on 2G, 3G, and internet fluctuations are prime reasons for a transaction failures on mobile. A transaction can drop anywhere while it is hopping across acquiring gateways, processors, issuers or Master/Visa network. As a result of this, merchants encounter increased cart abandonment rates which impacts their revenue stream negatively.
For this Magic Retry feature was introduced by PayUbiz which solves this issue very effectively. Magic Retry gives customer an option to retry by a click of a Retry icon, without the customer to go through the hassles of re-doing everything again. Magic Retry captures the current status of a customer’s transaction and creates various checkpoints during the transaction. It helps him/her recover the transaction if anything goes wrong during a payment process. In other words, upon Retry, it resumes the transaction from the last successful checkpoint by re-using the existing captured parameters.
Statistics suggests that the mobile based payment transactions suffers approximately 20% drop rates due to network issues. As low as 50% customers retry transaction due to failures at first attempt. With this feature, this the success rates can go up to 90-100%. .

4. Emerging Biometric payments
Security is the topmost concern of the financial services industry today. Passwords have been the most common and the oldest way to keep accounts and personal data secure. But for how long? It’s difficult to keep a track of all the passwords and payments organizations have already started bringing innovations in this space.

Very rapidly, biometric authentication is replacing the term “password,” especially in #FinTech. This is true not just for the US but globally as well.

In the FinTech industry, Apple has done a brilliant job of taking people away from passwords by introducing TouchID. Apple’s TouchID has been a huge success as #banks and financial institutions are incorporating the feature in their banking mobile apps. Like Apple Pay, Samsung Pay also has biometric authentication techniques where a user will be able to authorize payments by holding their finger on the inbuilt biometric scanner.

5. Online to Offline
O2O is defined as anything digital such as a mobile app which brings people to shop in offline stores. Mobile payments are an enabler for O2O wherein customers can shop from offline stores and use a service such as mobile wallet to make the payment for the service or product.
Recently Paytm decided to enter into O2O with the acquisition of local services marketplace Near.in. It also invested in deliveries start-up Jugnoo and Little, an app that helps people find deals at stores in their neighbourhoods.