In this article we’ll be looking at the 5 top payment trends that are dominating the UK in 2022. Learn more about what you can expect here.
The digital payment market is evolving and developing at a rate we’ve never seen before.
Covid has created a new normal in the payment world with an accelerated, albeit slightly forced, move from cash to the cloud. But even before Covid the popularity of cash was falling fast, with contactless payments using smartphones already on the rise.
Organisations were forced to look at new technologies and innovation to meet the new reality of consumer needs. And the benefits that new digital options brought with them have inspired the future of payments.
Consumers want more. More of the frictionless ease of paying, speed of purchasing and sophisticated security options that new technology is bringing to the table.
In this article we’ll take a look at the five top key payment trends in the UK and what it means going forward for payment technology in 2022.
Embedded finance is a hot topic in the UK at the moment and covers such a broad range of payment technologies, start-ups and opportunities. It’s a system that allows seamless, usually near-instant, financing, and payment without having to involve the traditional banking system and payment gateways.
As stated in the Oracle’s estimates, the value of the embedded finance market is looking to soar close to $7 trillion within the next 10 years.
Here are some of the most noteworthy in 2022.
If companies choose to use data in the right way, it can transform businesses. By identifying patterns in purchases, businesses can start to create a more tailored experience for their customers.
Enter technologies such as AI and machine learning (ML). Having these at their disposal is a game-changer for businesses as they will have the capacity to analyse a huge amount of data such as transaction histories and spending habits.
Transport for London, for example, used data from contactless and Oyster card payments to track user habits, monitor journey times, and identify problem areas to improve the network for everyone.
Connecting commerce solutions like loyalty programmes, online appointments, online check-in, and automated communications are being used to help businesses improve their customer experience. By becoming more connected to their customer they can attract new business, create more value and, as a result, grow their brand. Loyalty programmes, in particular, have come a long way from the ‘collecting points for rewards’ schemes they once were.
With companies such as MarPay technology newly on the scene, customers are now being offered the chance to “buy more, pay less” – all by spending and earning loyalty points instantly at checkout.
In a world where customer loyalty is becoming more difficult to retain, it’s an incentive that is proving to be a win-win for both merchants and customers alike.
The basis of tomorrow’s payments architecture will revolve around firms opening to integration and offering shared services with other firms in their ecosystem. The core of this system will be supported by a services portfolio that will help enable tailor-made sector-specific customer solutions.
With the prime example of open banking revolutionising the way that we move and manage money, it’s a shift in payment technology that doesn’t seem to be slowing down.
As apps have increasingly become part of the everyday fabric of our lives, it’s been pretty much inevitable that some will ultimately transition into “super-apps”. For an app or platform to be considered “super”, it needs to offer users multiple services in one place.
In the UK, Uber started as a taxi app but now offers food delivery too. Facebook has added its Marketplace (and a hundred other services) all under one login and Deliveroo started as takeaway app and now offers Grocery Services as well. When you combine seamless payment processing, digital wallets, and points systems into these apps, you truly can call them super.
The UK financial regulators will be keeping a very close eye on these apps and platforms as they grow, however – so only time will tell if they manage to reach the same market penetration as super-apps like WeChat in Asia.
What are your thoughts on the direction that UK payment methods are taking in the UK? We’d love to hear from you.