About a generation back, a consumer could think of no way other than making payments in cash for his/her shopping needs. The arrival of personal computers, launch of companies and mass digitalization has familiarized customers with the concept of online shopping. This change has been accelerated with the wide adoption of the smartphone, which has made commerce available to consumers, anyplace and anytime.
Technology has a huge role to play in reinventing commerce. It has changed customer experiences in physical retail outlets. It has changed the face of online payment gateway industry.
Let us take a look at the trends in technology that have made the biggest impact in shaping payment gateways online:
Emergence of new forms of payment:
Initially ecommerce could be operated only from computers or smartphones. With the coming of several new devices, such as connected devices, fashion accessories and sensors, clothing and appliances there is a created potential for disruption of existing ecommerce and prospective new payment forms.
Another shift that has been witnessed is consumers moving from the type interface to voice interfaces with personal interfaces. This has resulted in payments becoming more commodities than experiences. There is an expectation among consumers that checkout experiences be seamless across all devices, as the number of established payment platforms have increased. Companies like MasterCard have taken an initiative to increase security in the digital era, by making a provision where card issuers can see where all their cards are stored across all digital devices. This puts customers more in control of how, when and where their card is being used.
Machine learning to take center stage:
Companies have been able to source large amounts of data but are now in a fix as to how to make sense of it. Artificial intelligence (AI), helps companies better synthesize data and improve the ecommerce experience for their customers. With the growth in data, sophistication of networks and smarter algorithms coming together, artificial intelligence is going to transform several industries including the payment gateway industry.
With companies beginning to invest in machine learning, information is becoming smarter over time and this is resulting in fraud risk prevention as well as increased efficiency with respect to online orders, status of balances and transfers between accounts.