The future of online payment systems – What can we expect?

Sponsored content

People’s payment habits have undergone a massive transformation over the past five years, with one of the primary driving forces being COVID. Its effects are still felt today, both in how we make payments and in the popularity of various payment systems.

New online payment systems have radically changed our daily routines and our relationship with payment methods — from cash to bank cards, contactless payments, and digital wallets. But what direction are we heading in the coming years? In this article, we will present the key trends and changes that will shape the future of payments.

The Decline of Cash

These days, it’s almost standard to be able to pay by card everywhere — we even find it odd if a restaurant or website doesn’t offer that option. But this wasn’t always the case. The world is increasingly shifting toward cashless payments, and there are several reasons behind this trend. One might assume it’s mainly due to the rise of smartphones that has shaped our daily habits. Furthermore, another reason could be the growing popularity of online shopping. However, the COVID-19 pandemic has also played a major role. During the pandemic, people increasingly turned to card payments to avoid spreading the virus — and this tendency seems to have persisted even after the pandemic.

Cash usage has been steadily declining, and according to experts, this trend is expected to continue gaining momentum in the coming years. A study by PwC and Strategy& predicts that the number of cashless transactions could grow by more than 80% between 2020 and 2025 — from 1 trillion to nearly 1.9 trillion — and nearly triple by 2030.

Cryptocurrencies and the role of blockchain

Bitcoin and other cryptocurrencies are seen by many as the foundation of the financial system of the future. While regulations and exchange rate fluctuations remain a question mark, the decentralisation and transparency provided by blockchain technology could bring significant benefits. More and more companies and banks are starting to use this technology to simplify and secure international transactions. 

The most popular online payment methods right now

Online payments are becoming increasingly popular and there are many different platforms available to users. Below we present the most popular online payment systems:

PayPal: one of the best known and most trusted online payment providers, so you may have heard of it. Paypal has more than 400 million users and is available in over 202 countries.

The biggest advantage of this service is that it accepts more than 25 currencies. Paypal’s system protects users’ financial data, so card details are not shared directly with merchants during transactions. It also has a customer protection program. Thus, if the customer does not receive the product or it is defective, PayPal provides a refund under the customer protection program. In addition, we can easily send money to our friends through PayPal.