Driven by consumer behavior and market trends, 2017 saw some of the biggest changes in payment technologies. Here we will examine the impact they will have on startups in 2018.
What were the biggest payment trends for startups in 2017?
2017 has proved to be another successful year for technology startups. Retailing giants Amazon and Apple acquired several technology startups. Both Amazon and Apple had previously introduced their own payment systems. Apple Pay and Amazon Pay are now popular merchant pay systems. Other prominent payment trends include iDebit, Bitcoin and artificial intelligence.
Created by US retailers Amazon, Amazon Pay allows users to make the most of their accounts. Payment information linked to an Amazon account is accessed when a user reaches the checkout stage. Payment is taken instantly streamlining the entire checkout process. Amazon Pay is also the most successful merchant pay system worldwide.
How does it work?
Amazon pay allows the user to make payments and receive money using their Accounts. Payment method details (usually debit/credit cards) already held by Amazon are used to make purchases. Ideal for consumers who like to shop online as it improves the checkout process. Retailers who accept Amazon Pay will it listed within their accepted payment methods. Amazon Pay’s logo may also be seen at the retailer’s checkout.
For retailers in order to be able to accept Amazon Pay it must be integrated. Once fully integrated on their sites retailers will be ready to go. Benefits of Amazon pay include a more streamlined payment process for customers and for better data capturing.
iDebit allows users to make and receive money instantly via online banking. In effect, it means consumers can shop online without using card payments. IDebit can only be used if the consumer has a valid bank account.
How does it work?
Based upon the popular Canadian payment system instadebit came iDebit. Available worldwide iDebit has enjoyed rapid growth in 2017. Within the retail and online casino industry iDebit has already surpassed many other payment systems. Looking at a guide on How to use iDebit consumers will find it works as an extension of online banking. When consumers are ready to check out they can click the iDebit option. Clicking iDebit will take the consumer to a list of banks, where they will select their bank and log in. Once logged in to online banking there will be an option to approve the payment. Money is sent instantly and the consumer will be returned to the retailer’s site. Using iDebit eliminates the need for card details completely. However, iDebit does require the user to have a bank account.
Benefits of iDebit for both retailers and users are the focus on security and user-friendliness. For 2018 startups, iDebit is one of the best payment processing systems available.
Bitcoin is part of the cryptocurrency family meaning it is an online currency only. Throughout 2017 Bitcoin has appeared frequently in the news. Despite all the media controversy, Bitcoin is a recognized payment processing system.
How does it work?
Bitcoin is an online-only currency and is also decentralized. Being decentralized means that no single institution can exert control over Bitcoin. Bitcoin also operates separately from banks or other money lenders. This means that when Bitcoin is used as a form of payment between person, no private information needs to be accessed. In order to use Bitcoin as a payment method, both users must have a bitcoin wallet. Bitcoin wallets are apps that allow the user to send and receive Bitcoins.
In order to use Bitcoins on an e-commerce site, the retailer must have a Bitcoin wallet integrated. If Bitcoin is accepted the Bitcoin logo will be displayed at checkout. One of the biggest benefits of using bitcoin is the security. During a payment no sensitive banking details need to be accessed or divulged. Startups looking to keep up with the latest financial trends should look at Bitcoin. Although Bitcoin value is volatile demand for Bitcoin remains high.
Also known as (AI) artificial intelligence is the development of technologies to enable them to carry out human tasks. Popular examples of (AI) being used in payment processing include virtual personal assistants like Amazon’s Alexa, OK Google and Apple’s Siri. However, banking or debit or credit card details must be linked to the virtual personal assistant.
How does it work?
For years’ large technology companies like Google and Amazons have been compiling data. Largely unused for years until now. Thanks to smarter algorithms and the wealth of data available AI has taken centre stage. For technology companies, the successful implementation of AI has led to rapid increases in sales.
The introduction of virtual personal assistants is the best example of this. Think of any virtual person assistant like Alexa. Now, think of all the abilities that Alexa has. From simple day to day tasks like gathering the news to business applications, Alexa can do them all. More and more people are leaving the running of their lives to AI. Data gathered by Alexa, Siri and Google is invaluable and highly sought after. One of the best new integrations for AI is in payments. An example of this is American Express’ decision to allow Alexa to make payments.
Anything that changes the way consumers pay for goods will affect startups. While AI is being used to drive sales, it is still unclear what the future of AI payments is. Technology startups perhaps have an advantage in adapting to the changes AI will bring.