Imagine a future where spending cash will seem as obsolete as using a manual typewriter, cassette player or even a VCR.
With Asia Pacific’s smartphone adoption expected to hit 3 billion units by 2020, it is evident that consumers are embracing the increasingly-connected world. Even today, the point of interaction is changing and digital solutions, such as digital wallets, are becoming rapidly accessible to consumers. It is clear that the payments industry is on the cusp of an exciting new era.
At the MasterCard Innovation Forum this year, we caught a glimpse of these payment innovations, and here are five payment trends we think will revolutionize the future of payments:
- Commerce Anywhere?
Mobile point-of-sale, or mPOS, is a portable dongle which transforms any connected device into a commerce device. Cost-effective and easy to implement, mPOS enables traditionally cash-based micro and small businesses to offer electronic payment options to their customers. This nifty piece of tech is catching on among consumers in Singapore Vietnam and by more merchants across Asia Pacific in the near future.
- Smart (Connected) Cars
The latest technology being developed for cars include driverless technology, pre-collision sensors and road safety vehicle-to-vehicle communications. We’ve seen the ERP system revolutionized toll payments in Singapore through the use of in-vehicle devices. In the future, commerce systems in cars will allow drivers to select & purchase drive-through food, petrol, and other services without ever having to step out of the car.
- Frictionless Security
Security is paramount in today’s ever more digital world. Yet it would be great to remove the frustration of remembering all your passwords, or getting locked out of your own account for failed login attempts. With heartbeat payments and facial recognition technology on trial in the Netherlands and the U.S., authenticating payments with our face, fingerprint and heartbeat will soon be an everyday reality. Such use of technology and data moves away from relying on what the consumer knows (passwords), to what they have (mobile smart devices) and who they are (biometrics) while raising the bar on security.
- Boundary-less In-Store Experiences
Not a fan of queuing? Imagine going shopping when you want and where you want. By simply installing Radio Frequency Identification (RFID) chips or QR codes for each item, all consumers have to do is scan and purchase the item via their mobile phones. Tesco Homeplus took this idea to the next level by bringing the store to their customers in Korea subway stations and it was a great hit!
- Being Human
Find yourself forgetting your wallet at times or even misplacing it? In the future, you will be able to persistently authenticate yourself to your environment. Through simple gestures and verbal instructions, you will be able to conduct any type of commerce transaction. It is being human. Get the most out of your life. No swipe, tap, or click required.
Sounds farfetched? We think not. The future of payments is limitless and we at MasterCard are hard at work to make the commerce experience even more seamless, frictionless and secure. Are you with us?
Check out our Digital Press Kit for more content from the MasterCard Innovation Forum 2015!