The impact of digitalization and technological innovation in the world is reaching unknown levels, being able to reinvent industries and the entire economic fabric. This transformation of traditional models towards more digital models has also reached the world of payments. Added to this is the critical situation in which we find ourselves in relation to the socio-economic impact caused by the coronavirus, forcing many companies to rely more and more on a largely digital environment. Jason Simon, an expert in online payment solutions FinTech, explains how electronic payment innovations can lead to better development of today’s industry.

“In this scenario, it is really important that banks and other companies are up to the task of supporting their customers on that path to digital transformation by providing digital payment services that meet their needs in relation to payment methods,” says Simon.

61% of users surveyed in a study have indicated that they already use financial apps for payments and 90% of them rate the experience as positive. Meanwhile, 39% who do not use them expect to incorporate the habit in the short term. It has been determined that mobile payments will increase along with additional functionalities that help consumers manage their money in a simpler and more efficient way. Not only will the use of bank apps grow, but also the use of wallets from non-traditional financial institutions.

On the other hand, there also comes the existence and growth of the QR code. It is expected that the QR code will grow exponentially as more and more businesses will incorporate it. According to several pieces of research, the growth of QR has been evidenced in the last few months. In supermarkets alone, payments grew by more than 500% between February and July of 2020.

Payments through social platforms are another phenomenon. During the last few months, different companies have launched their own payment button for WhatsApp, Facebook, Instagram, and Twitter platforms. To pay in this way, consumers must contact the merchant to place their order, then they will receive a link to fill in their personal and card data, and when they return it completed, the transaction is confirmed. Although this is not a tool specific to social networks, these platforms are already developing their own payment systems.

Even when the digital transformation was already on the industry’s agenda, it has now become a priority, especially for banks, which are competing with FinTech for the leading role in the sector. Simon says, “Projects have not stopped, but rather have taken a massive acceleration over the last few years. All those companies that in one way or another wanted to take the lead must now transform themselves quickly to respond in an agile, efficient and digital way to today’s market.”

It is also important to address other key points to which special attention should be given, such as the adoption of tools like tokens, which redefine the security of payments both in the business-to-customer and business-to-business relationship, with agile and easy-to-use technologies, thus allowing the creation of authenticated profiles. In this way, banks are able to leverage this database to make and receive electronic payments securely without the need to disclose any sensitive banking information.

Another key lies in rising to the challenges of dealing with emerging technologies. There is no doubt that the risk is worth it, but it is increasingly important to be up to the task of dealing with certain cybersecurity threats by providing effective risk mitigation solutions for potential fraud. “Providing protection and ensuring confidentiality thus becomes the biggest challenge facing the payment industry in its digital transformation,” Simon concludes.