From contactless and QR code based payments to chatbots and voice-enabled technology, fintech is changing the way people bank and make payments

In today’s world, most people are used to getting what they want right away. This reality is especially true when it comes to the use of technology.

For many individuals, this is the age of instant gratification. People can order food, summon a taxi, or purchase items online with the click of a button.

For the most part, people have come to expect immediate results for just about everything. This notion is also true when it comes to finances.

This article discusses the significance of fintech in a world of instant gratification and explores how fintech is changing the way people make payments.

The expectation of instant payments

In the early 1990s, when cheques were at their peak, it took an average of three business days for a payment to clear.

Imagine the difficulties a company would face if they suddenly had a surge of customers who wanted to pay by cheque.

They often needed to apply for loans and risk financial stability to meet the demand.

Not to mention cheque fraud, which was rampant at the time.

Fast-forward to the present day, and it’s a whole different story.

Thanks to innovations in fintech, people can now make payments in real-time. This means that businesses no longer have to worry about being overwhelmed by customer demand – they can simply process the payments as they come in.

These developments are a significant advantage for companies as it allows them to keep up with the competition and grow their business.

Real-time payments also help to improve customer service by reducing wait times.

Plus, they make it easier for businesses to manage their finances and stay on top of their cash flow.

According to Vaibhav Sinha, CTO at BlocPal, “We are now in an ‘instant gratification’ world. In Fintech, sending and receiving payments is expected to be instant. For example, India’s NPCI has transformed payments where 48% of retail payments are now instantly settled in the merchant’s bank account.”

He added, “Merchants don’t have to wait for end-of-the-day card settlements using this mode. As this catches on, we’ll see similar ‘instant’ payment & settlement services launching in North America and the rest of the world as well.”

How fintech is changing the way people make payments

In addition to making real-time payments possible, fintech has also made it easier for people to make payments in various ways.

For example, there are now many mobile payment apps that allow people to pay for items by scanning a QR code or using contactless payments.

“The Internet of Things (IoT) has finally come of age, with important ramifications for financial systems,” stated Terrie Smith, Co-Founder and CEO at DIGISEQ. “The IoT is casting a wider net for devices to communicate across wired and wireless networks, including NFC solutions and connected end-point devices. Embedded-system and smart technologies are also developing fast, enabling more intelligent communication with objects.”

Saving time on processing payments means businesses can focus on more critical tasks, like growing their business. It’s also suitable for customers because they can avoid long wait times.

Furthermore, in addition to instant payments, consumers have come to expect instant responses.

This is where chatbots come in.

Chatbots

Chatbots are computer programs that mimic human conversation. They can help customers with a variety of tasks, including making payments.

Businesses provide instant customer service and resolve any payment-related issues in real-time by using chatbots.

“We are starting to see the application of conversational AI in the world of payments,” said Jane Loginova, Chief Strategy Officer at BPC. “Chatbots with speech-to-text and text-to-speech features have now become more accessible, bringing the ability to transform how we make in-app payments.”

Voice-enabled payments

Another way fintech is also changing the way people make payments is through voice-enabled commands.

This option allows people to make a payment by simply saying what they want to purchase or confirming payments.

For example, Amazon Alexa and Google Assistant both allow people to make payments using voice-activated commands.

“Digital banking apps that offer this feature are enabling their customers to instruct on transactions and initiate bill payments using voice alone. And the potential for this isn’t restricted to banking apps, added Loginova. “Voice-enabled payments could be used to confirm payments on other apps such as those of food delivery providers.”

Wearables

Another way fintech is changing the way people make payments is through wearables.

Wearables refers to devices that people wear, such as watches and rings, that allow them to make payments.

For example, Apple, Google, Samsung, and Fitbit all have payment systems using their ‘Pay’ brands that allow people to make payments using their smartwatches.

“Wearables are truly at the forefront of fintech innovations and disruption, creating new ways for millions of consumers to connect with their banks, service providers and other brands worldwide,” added Smith.

Other examples

The technologies mentioned above are only a few examples, but there are many other ways in which fintech is changing the way people make payments.

For example, many companies now allow people to make payments using cryptocurrencies, such as Bitcoin and Ethereum.

Buy now pay later (BNPL) is another example, which allows people to make payments for products and services over time.

Remittances have also improved over the years, making it easier for people to send and receive money worldwide.

“We’ll see a convergence of payment products and services among banks and credit unions. I believe they are in the best position to serve as the primary provider of these services for their customers,” said Bryce Deeney, Founder and CEO of equipifi.

He added, “As three examples, crypto, BNPL, and investing currently require multiple relationships with multiple companies. But in the very near future, people will be able to log into one account that does all of that, plus more. The whole industry is set to be democratised, giving all consumers—not just the affluent–more control over their finances.”

The bottom line

A lot has changed over the years when it comes to making payments.

Thanks to fintech, people can now make payments in real-time, which is a significant advantage for businesses.

In addition to making real-time payments possible, fintech has also made it easier for people to make payments in various ways.

According to Jonathan Silver, CEO of Engage People, “The increased adoption of digital payment options through mobile devices, or tap-to-pay options has become more prevalent as consumers continue to move away from traditional payments. This opens up a myriad of new opportunities to enable alternate payment options.”

In a world of instant gratification, it is clear that fintech has become the foundation in the way people make payments. This evolution is thanks to the innovations in technology that have made it possible for people to pay for items quickly and easily.

“Given the demand for payment flexibility and simplicity of conversion, companies will begin to focus on creating products tailored to the consumer experience, including the utilisation of loyalty currencies as a form of payment,” added Silver. “We see PwP gaining wider traction alongside other alternative payment options like cryptocurrencies or Buy Now, Pay Later, and becoming integrated into the preferred consumer experience.”

In conclusion, as more and more people work on these technologies, it’s likely that even newer innovations will emerge, making it easier for people to make and receive payments in exciting new ways.