The technological race of payment methods

 

The digital payment market is one of the industries that are experiencing more transformations in the last years.

This is due to the strong impact caused by the habits of new generations, users who want to be able to make immediate transactions from their own mobile, seeking security and comfort.

Traditional banking already requires digital payment platforms, which is an opportunity for those companies that are dedicated to payment systems innovation.

This is a race for modernization that will be driven by the following trends that we will discuss below:

The generation of immediacy

The youth that precedes the millennial are the true digital natives. According to Accenture’s study: Driving the Future of Payments, 68% of Generation Z consumers are interested in person-to-person instant payments, more than any other age group.

It is expected to be the first generation to abandon the traditional payment method as it is estimated that 69% use daily or weekly mobile banking apps.

DCB is still growing continuously

In Telecoming, we are carrier billing specialists, it is a payment model that does not require a bank account and has a great reception among young people, extending to a growing audience.

One of the main benefits of Direct Carrier Billing (DCB) is autonomy because it allows users to make payments whenever and wherever they want without depending on their credit card. Traceability and convenience are other of its characteristics, allowing fast and secure transactions without the need for consumers to provide their personal data.

Therefore, the DCB becomes a good alternative due to new market demands.

As we already announced in our previous post – What The Future of Direct Carrier Billing Looks Like – turnover will reach 7,500 million dollars by 2019. A figure that we expect to double its market penetration by 2022.

The consumer is the king and the user experience is the key

Design new payment methods according to the consumer profile we are targeting is the key: Placing the consumer at the center of any payment experience.

Personalization and security are the digital payments priorities for a new user ´s generation.

It is about seeing digital payment as a new business tool capable of offering a solution that adapts to the needs of each client.

DCB offers a good user experience. The absence of intermediaries helps the simplicity of the payment process, providing a simple and satisfactory experience.

According to the Accenture study cited above, 64% of consumers plan to use a mobile wallet in 2020, a figure that is currently around 46%, an increase of 39%.

As we have been able to analyze, the new business opportunities opened up for DCB will allow this payment system to continue growing in the coming years.

Traditional companies are forced to implement the new payment methods demanded by consumers.

We are facing a technological race in which no one can be left behind.