5 Payment Mechanisms Set to Go Mainstream in the Next 2 Years
All of this changed with the crackdown on Silk Road and the opening up of the bitcoin market in the last few years. A slew of new bitcoin exchanges popped up, enabling consumers to buy and trade bitcoins with ease. Consumers can (and do) now use bitcoins for purchases from websites without providing any personal details, such as their credit card number, address or even a name to the merchant.
As consumers become more privacy focused and concerned about growing data theft online, the use of crypto currencies like Bitcoin, Dogecoin, etc., that offer users anonymity will only gather momentum. CoinMap offers a detailed guide (in interactive map form) of merchants both online and offline that accept bitcoins as payment.
4. Biometric payments: Biometric payment systems are probably the most nascent among the new payment mechanisms available to consumers and merchants. However, it's reasonable to expect smartphone-based biometric payment systems to become mainstream over the next couple of years. How?
Recently, Visa has been reported to be experimenting with biometric payment technologies. Currently, Visa supports biometric payment validation in conjunction with smartphone manufacturers like Apple and Samsung. Visa integrates with Apple Pay via Apple's Touch ID. Samsung has also introduced several phones with finger print readers, which now are supported by Visa for payment authentication. Nobody will be surprised if, in the near future, more smartphone manufacturers incorporate technologies for biometric authentication.
Biometric payment systems are extremely secure, as they require biometric authentication before processing a transaction. For example, a biometric validation can be in the form of a fingerprint or retina scan.
5. P2P payments: We've all used peer-to-peer (P2P) systems to share music, movies and games with our friends and family, adding to the media industry's woes. P2P payments work on the same fundamental principle, except that they're 100 percent legit.
Rohan Ayyar is the regional marketing manager for India at SEMrush. His blog, The Marketing Mashup, covers digital marketing from the perspective of B2B, B2C, lead generation, mobile marketing, SEO, social media, content marketing, database marketing including predictive analytics, and conversion rate optimization. In addition, he'll look at emerging marketing technology and how marketers can use it. Reach Ayyar at email@example.com.