As any meteorologist will tell you, the crafting of predictions is a risky business. Nevertheless, making our best guess about what will happen during the months and years to come seems to be a part of human nature. In that spirit, we present to you our prognostications about the near future of the online payment processing arena for the rest of 2022 and beyond.

Smart payments.

For most consumers, time is at a premium. Therefore, anything you can do as a business owner to make the checkout experience as frictionless as possible is mutually beneficial. So-called smart payments exemplify how technological solutions are helping to fill the bill.

As 2022 progresses, we will continue to see expanded payments flexibility being offered by more and more retailers regardless of size. Buyers will be able to make their purchases not only with cash, checks, and credit or debit cards, but also through the use of Apple Pay, Android Pay, Samsung Pay, and other vehicles. Using digital wallets stored within phones and wearable devices like watches, these latter methods allow goods and services to be bought securely in a matter of seconds.

Contactless solutions.

Since COVID-19 appears to be with us in one form or another for the foreseeable future, consumers will likely keep embracing contactless payments and innovative product delivery solutions such as buy online pick up in store (BOPIS). They will also likely go on ordering much of what they want over the internet, having items shipped directly to their door in a matter of days or even hours. Because families are spending more time than ever at home during periods when the virus is surging, their hunger for shiny new products and hobby-related items will likely only get stronger despite ongoing supply chain kinks.

Decentralization of payments.

For years, banks and other mainstream financial institutions have held sway over the payments industry. However, the status quo is changing. For instance, the only alternative to paper checks was once the automated clearing house (ACH) transfer. These days, however, ACH is gradually being replaced by real-time payments (RTP) that have lower transaction fees and are generally more accessible to the end-user.

Instantaneous digital transfers.

Consumers have been embracing peer-to-peer payment options such as Venmo and Apple Pay for several years now. That same technology is now making its way into the business-to-business arena. As a result of this efficient digital process, transactions that once took days or even weeks can now be accomplished in an instant.

Flexible payment options.

Any online payment processing company worth its salt is now jumping on the consumer choice bandwagon. People tend to spend their money with sellers who give them several different ways to pay for their goods and services.

To meet this demand, processors have begun to offer added options. One of the most popular is recurring or subscription-based payments, an arrangement in which the buyer agrees to have a set amount of money automatically withdrawn from their bank account on a fixed day of each week or month for a predetermined length of time. Other solutions include automatic and layaway payments. All of these are designed to make obtaining merchandise as convenient as possible without placing the merchant at undue risk of default.

Early payment discounts.

With economic conditions tenuous at best, retailers want to get what is owed to them as quickly as possible. Incentivizing customers to settle their bills early by offering a small discount is proving to be an effective tool that frequently pays for itself, as your company’s staff does not need to spend time, energy, or financial resources to chase delinquent payments. Instead, they have immediate access to the cash, which can instantly be funneled back into the business.

Greater emphasis on security.

The headlines remain filled with stories of fraud, ransomware attacks, email phishing schemes, and numerous other forms of cyber sabotage. These crimes are causing financial devastation to businesses of all types and sizes, as well as to their customers. Sadly, cybercriminals show no signs of lessening their efforts anytime soon.

An ever-more sophisticated combination of human expertise and technological digital perimeter monitoring solutions is being used to combat these potentially devastating intrusions. Security specialists have long been aware that many forms of breach are made possible because of poor cyber hygiene on the part of end-users. Weak passwords and ineffectual fraud detection at the time of payment have left many businesses’ doors wide open for these electronic burglars.

There is heartening news on this front, however. Protocols such as Address Verification Service (AVS) and 3-D Secure payments are helping to make the purchasing landscape safer. As sellers at all levels become increasingly knowledgeable about security red flags, as well as the solutions that can be used to protect data, retailers’ fortresses against cybercrime can become increasingly effective.

The increasing popularity of cross-border digital payments.

Despite supply chain kinks and other difficulties caused by the pandemic, we continue to do business on a global scale. In addition, immigrants in wealthier nations such as the United States are using innovative digital money transfer services to send financial support to relatives back home.

Increased regulations on the horizon.

The proliferation of players in the payments industry has led to more choice and opportunity, but it has also set the stage for additional needed regulation. To that end, the Consumer Financial Protection Bureau (CFPB) is taking steps to learn more about the payment practices of big tech providers like Amazon, PayPal, Square (now known as Block), Google, and others. No doubt, it will implement regulations over the upcoming months that will affect the information consumers receive about the financial services they use to make purchases and transfer funds.

Crystal balls are hard to come by, and what magicians see in them is open to question. Luckily, the payments landscape seems to be a good deal easier to read. In 2022 and beyond, companies and their customers seem destined to keep embracing the online marketplace, complete with the security measures that are quickly being put in place to protect its perimeters. Even as cybercriminals concoct new schemes, security and industry specialists are sure to arrive at solutions that allow for ever safer and more innovative ways to transfer funds.