From the beginning, the payment model has undergone tremendous change from barter system to cryptocurrencies.
In the modern era, money exists in both digital and physical form. The former is becoming more prominent as technology is making digital money through e-wallets safer, more accessible and convenient. Here are the top e-wallet technology trends to watch for in 2020.
The digital currency concept has reduced many of the challenges encountered with traditional monetary transactions such as lack of transparency,
accountability, access, mobility, security, and more. The popularity of the Internet has acted as a platform for electronic money transactions and facilitated the payment experience.
For the past five years, a new method of payment has emerged in the digital payments market, it is called mobile payment or e-wallet. And because of its easy accessibility and convenience, the e-wallet payment mode has become the most popular payment method among all.
Considering the fact that global digital wallet transactions reached $4,296 billion in 2018 and are expected to reach $13,979 billion by 2022, e-wallets seem like the future of payments.
The most interesting thing to know is that innovations in the e-wallet ecosystem have just begun. Advanced technologies will be integrated to make mobile payment systems more secure and convenient over the next few years.
The year 2020 will see the rise of biometric authentication as a verification method for financial transactions. It is based on the biological and structural characteristics of the customer and includes fingerprint recognition, iris recognition and facial recognition.
The reason why biometric authentication will become popular in the near future is because of the increase in the cases of identity theft and fraud. Biometric authentication comes as a secure and reliable solution for mobile payments. Since biometric security involves unique characteristics of an individual, it helps to address challenges such as lack of customer trust with e-wallets.
Types of Biometric Authentication
Here we will give you a basic understanding of the types of biometric authentication methods and how they are used. If you’re not interested in knowing that, you can move on to the next technology trend – smart speaker payments.
One of the most commonly used biometric authentication methods is fingerprint scanning.
Since most mobile devices are now equipped with fingerprint scanners, it has become possible to rely heavily on this technology. Although fingerprint sensing is not a full-proof technology, it is inexpensive and a viable alternative to biometric authentication.
Facial recognition technology is based on measuring and comparing a person’s facial markings to provide access. Faceprints are different measurements of one’s face and when a sufficient number of faceprints match, the system grants access to the user. Many high-end mobile devices have facial recognition features and a fintech company may incorporate such features for users of such devices.
Voice recognition technology measures a speaker’s voice profile by combining multiple data points and comparing them with benchmarks/stored databases to provide access.
The technique also includes the movements of the speaker’s throat and mouth while producing sound. This technology eliminates verification errors resulting from voice imitation or changes in voice due to illness.
There are two types of eye scanners used commercially, one is the retina scanner and the other is the iris scanner.
Retinal scanners read and compare the patterns of blood vessels in the eye by projecting a bright light towards the eye. Whereas the iris scanner looks for unique patterns in the colored ring present around the iris.
The scanning technology of both eyes is prone to security hacks. For example, one can dodge scanners by using photographs. It is also difficult to use if the person is wearing contact lenses or glasses.
Smart speaker payment through e-wallet
Smart home assistant speaker is the latest trend in the market and the e-wallet industry has started taking advantage of it.
It actually commercialized successfully in 2014 when Amazon took a step forward by launching Alexa, its first smart speaker. Several other market players have entered this market segment as home automation has become mainstream in recent years.
A Statista report states that in the month of November in 2017, 82 percent of smart speaker assistant users used voice commands to retrieve information. Whereas, 35% of users used Assistant to shop for clothes, home care, etc.
The report further stated that 28% of users paid or sent money through smart speaker assistants.