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Digital payment trends in banking by 2021

The use of digital payment methods grew in the last year due to the pandemic, driven mainly by the need to minimize or avoid physical contact. In 2021 this trend will continue and will even drive improvements to existing innovations and promote the creation of new ones. What are the trends that will continue and those that are coming?Given the role/function that digital payment methods have gained, both banks and businesses have accelerated their transformation processes with increasingly advanced technologies that provide three basic aspects: simplicity of use, immediate availability, and interoperability. "These axes are the main catalysts for new trends to be adopted by customers. However, this must be accompanied by the change of payment and consumption habits by users and their acceptance," he adds.

Digital payment method trends in 2021:

Contactless technology:
 this is a short-range wireless technology that allows data to be transmitted from a credit or debit card to a payment terminal. It is a fast payment system and works only by bringing the card close to the payment device. It is estimated that in Ecuador, almost 70% of the POS equipment network in stores already has this technology in operation, and of the total number of customers with debit or credit cards, at least 60% have it.

Contactless payments with cell phones:
 Like contactless technology, this payment method allows transactions to be made by simply bringing a smartphone close to the payment terminal. It works through mobile applications with advanced technology that allows this communication and data transfer. This alternative is already possible, thanks to the recent launch of Promerica Pay by Produbanco, an APP in which Visa credit and debit cards can be registered to pay when required, without the need to present the physical card. 

Digital wallets:
 They allow contactless payments by simply bringing the smartwatches of these brands close to a POS. The Fitbit Pay digital wallet works thanks to the brand's smartwatches (Fitbit), which have NFC technology, which allows contactless payments, and the user can register their Produbanco Visa cards and enable them on the device. For its part, Garmin Pay works on Garmin-branded watches and also allows activating bank credit or debit cards to pay by simply bringing them close to the payment terminal.

QR payments:
 It consists of registering credit or debit cards in each bank's application, going to establishments affiliated to the network that has a QR code, and scanning it with the cell phone at the time of payment. Such is the case of Produbanco, which registers on its web page the commercial establishments where this method can be used. The implementation of this method is possible thanks to the alliance of financial entities with commercial establishments.

Payment button:
 This payment option is integrated into web pages or applications and makes it possible for the customer to pay directly with any card, allowing e-commerce businesses to take center stage. It has been very well received by merchants, as it allows quick and easy payments to be made.

Payment link: 
Through this option, a manual link can be generated in the sales platform and sent by different means (social networks or mail) to users so that they can approve and make the payment from anywhere. To enter, the merchant must fill out a template, and it will be generated immediately.

Read also: 
The cost of mobile banking development: and how to build a banking app.

About the benefits of digital payment methods:
Time savings: 
The main benefit, without a doubt, is the time savings generated in the payment processes, both for merchants and their customers. This is due to the fact that the methods explained above require seconds to become effective.

Portability:
 It allows having a means of payment in an everyday device, such as a smartphone or a watch, without having to carry physical cards or cash. The same goes for merchants, who can sell their products from e-commerce platforms with secure payment solutions.

Reduce contact and avoid mobilization:
 During a health emergency, the inclusion of these types of innovations has helped to maintain biosecurity measures. Avoiding physical contact in any commercial transaction is a fundamental measure to prevent the spread of Covid-19; and also to reduce unnecessary travel.
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