5 Fintech Payment Trends In 2022 You Should Definitely Watch Out

Fintech companies are constantly innovating to change the landscape of financial services. However, with the advent of new technologies, traditional financial services must adapt quickly to provide a streamlined payment checkout experience to the customers. The ongoing demand for new ways to deliver financial services requires a fintech company to rethink its payment platform. The Covid-19 pandemic revolutionised the way people buy, work, and live. It has significantly impacted the fintech services alike that need a competitive advantage to stay ahead. 

Here, we will see the top five fintech payment trends in 2022 to watch out for.

1. Cashless Payments Lead the Way

Standard modes of cashless payments include debit cards, credit cards, mobile wallets, bank transfers, and ACH transfers. Since cashless payments are expected to increase tremendously over the coming years, businesses must evolve practices and stay prepared. More customers demand varied payment options to carry out digital transactions. So, merchants must use them as a driving force to evolve their payment processing. 

2. Digital Wallets Become Common Models

Digital wallets are convenient, secure, and contactless payment platforms. Their use has become more popular for in-person transactions, thanks to e-Commerce transactions and NFC (near-field communication) technology. Users can save their payment details with end-to-end encrypted wallets and ensure transaction security. 

Consumers can now leave their residence without carrying an analogue wallet with a digital wallet on their smartphones. Providing multiple modes of payment is essential for any business, and digital wallets continue growing as a fintech payment trend.

3. Contactless Credit Cards with Tap-to-Pay Option

Contactless credit cards are showing rapid popularity among online payment platforms. More merchants are offering these as a safe payment solution to customers. Contactless cards process transactions much faster than scanning the chips. The touchless mechanism also saves the card from unnecessary wear and tear. Besides these, contactless credit cards are safer than swiping the card physically.

Although they have not become a norm yet, many card issuers have started sending them out by default and replacing old cards with this upgrade.

4. Buy-Now-Pay-Later Option is Getting Popular

BNPL option allows customers to purchase a product at the payment checkout and pay its price in instalments. The terms may vary from one fintech company to the other. Some purchases may also include interest. It is an excellent way to attract more customers, even those who do not have the funds to pay for the purchase up front.

5. AI and ML for Enhanced Security

Given the variety and amount of frauds in digital transactions, businesses have started relying on AI and ML to improve their security systems. These technologies monitor fraud transactions in real-time and decline them if appropriate. Using real-time analytics to watch out for fraud, retailers gain valuable insights to optimise their operations and stay safe against money laundering.
In the current era of convenience and speed, innovations in online payment platforms are foundational to business success. Adopting integrated payment platforms provides a secure way to enhance customer service and serve them better. Keeping up with the above trends attracts more clients and turns them into loyal customers, strengthening the merchant business.