People can use payment enablers to make digital payments through a variety of channels. We consider merchants, mobile, internet, bank accounts and participants. The payment infrastructure sub-parameters include prepaid payment instruments, credit cards, debit cards, automated teller machines, point of sale terminals and fast response codes. Radar Payments is a payment enabler that offers the ability to make digital payments through the aforementioned channels.
The payments industry will continue to improve and grow as a result of digital advances. The velocity of digital innovation in payments is driving a projected double compound annual growth rate in cost reduction. As new players arise, it is resulting in new business models and a more competitive environment. Payment Enablers continue to improve and grow with the implementation of various new innovations.
Innovations that propel the improvement and growth of Payment Enablers
Contactless payments – a safe payment technique that uses Radio Frequency Identification (RFID) enabled smartcard, a debit/ credit card or to enable near-field communication (NFC). Due to its fast and flawless experience, this digital payment option is gaining popularity.
Open Application Programming Interfaces (APIs) – a publicly accessible API that grants developers programmatic access to a proprietary software application or web service. New providers can use open APIs to build services over current infrastructure. These techniques are important because they lower the barriers to entry for new financial technology firms, spurring innovation and enabling the growth of seamless digital payment systems for end-users.
QR codes – a data-carrying two-dimensional Quick Response barcode or square-shaped code. It has grown in popularity since it is a rapid and simple way to share data and has the potential to significantly reduce payment acceptance expenses. A digital gadget with a camera linked to an account is all that is required to complete the transaction.
Biometric Payments – New payment methods have emerged as a result of new technologies and the adoption of existing ones. Biometric digital payments rely on biometric identification to verify and authorize payments. Any method of identifying a person by evaluating one or more distinguishing biological traits is referred to as biometric ID. Fingerprints, hand geometry, iris and retina patterns, voice waves, DNA, earlobe geometry and signatures are all unique identifiers.
Central Bank Digital Currencies (CBDC) – According to central banks that represent a quarter of the global population, Emerging market economies are transitioning from theoretical study to intensive practical development on a global scale. The first CBDCs are expected to be issued in the next few years.
With the growth of Payment Enablers, digital payments will bring about a significant change in the payments business, given the rate of change – and customers’ increasing appetite for higher speed and convenience. Some emerging markets lack modern payment infrastructure, and certain cultures have yet to build faith in the modern financial system, implying that we have a long way to go before becoming a cashless society.