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2021 Predictions for the Payments Industry
Payment Industry Trends in 2021
2020 was definitely unprecedented in so many ways. The rise of the COVID-19 pandemic brought everything to a halt and changes had to be made in order to operate in what is now called the “new normal.”
But if there’s anything good that came out of this pandemic, it would have to be the introduction of more alternative payment options into the mainstream market, making it easier for all kinds of businesses to continue operations with the help of a reliable credit card processor.
As 2021 begins, we can expect to see new trends and predictions for the payments industry including:
3-D Secure
With more people choosing to make transactions online, the incidences of fraud and scams are also increasing rapidly all over the world. Therefore, it’s only fitting that this year we will see more merchants implementing a stronger 3D anti-fraud system setup that will allow them to protect their consumers and their own businesses from potential security threats. In fact, it won’t be surprising if these anti-fraud systems will now be integrated into most websites.
Remote Payments
Because of the pandemic, more people are now working, shopping, and paying bills from home. It won’t be surprising that remote payments, especially app-based money exchanges, will now be the new way of sending and receiving money this year and moving forward.
It might take some getting used to for consumers to master ordering and paying remotely, but this trend will surely last for the foreseeable future. In order to take advantage of this trend, your business should start to accept credit card payments online, if it doesn’t already.
Stricter KYC & AML
The surge in online-based purchases has attracted cybercrimes of all shapes and sizes. So this year, we can all expect KYC and AML to impose stricter measures to protect both the customer and the merchant.
Businesses should be more vigilant about high-risk profiles and make sure that proper security measures are in place at all times.
SMEs
With a huge shift in online shopping and payment, small and medium-sized enterprises are now making a comeback. Aside from the value of local craftsmanship, SMEs also offer a good price point for their products. Supporting local businesses is a good way for consumers to keep the local economy thriving.
Alternative Payment Methods
The pandemic has definitely stirred a newfound interest in alternative payment methods. Both big and small countries are now seeing a huge demand for payment methods that allow for more convenient online shopping.
In fact, a study revealed that 74% of shoppers said that they are likely to switch brands if payment processing is difficult. Payment processors will see more payment gateways being designed for consumers.
Finally, crypto payments will continue to thrive this year, thanks to more people recognizing the legitimacy of cryptocurrency as a safe and reliable payment option.
At the end of the day, this year’s predictions for the payment industry will all boil down to what options will fit a business best. One thing’s for sure, though. The payments industry will be seeing one of its biggest evolutions yet, one that will transcend the boundaries of traditional payment processing, especially with the pandemic still going on around the world.
Contact us today to learn more about applying for a high-risk merchant account so you can start implementing these payment processing trends in 2021.
