Main Changes in Online Payments

Online shopping has been around for nearly 30 years, but it hasn’t always been the same. This increasingly popular practice has undergone numerous changes to reach its current status. The most important ones came out in the past three years.

Nowadays, we can enjoy amazing technological breakthroughs, such as e-wallets, alternative payment methods, digital currencies, and mobile payments. Furthermore, we no longer rely on banks and can choose whichever payment provider we want. Generally, it’s best to always use a payment provider that offers multiple withdrawal methods, such as Paxum.

We rarely notice these big changes in online payments and just take them as we go. Below are the main ones that impact how we pay for stuff over the internet today.

The Rise of Artificial Intelligence and Machine Learning

Artificial Intelligence (AI) and Machine Learning (ML) are two of the most debated technologies nowadays. On the one hand, they make many processes safer, more convenient, and faster. However, they also pose many unknown side effects, which developers have yet to discover, understand, or predict.

Nevertheless, this doesn’t stop financial companies from implementing AI and ML in various payment processes. The main reason for doing so is that these technologies help in the fight against money laundering and fraud.

AI-embedded and ML-using payment tools are on the rise and will most probably become the industry standard in the future. These solutions can record and manage the customers’ operations history, including their spending habits and preferences. This way, they can anticipate future expenses, withdrawals, or money transfers.

Financial companies can then sell this data to merchants to help generate customer profiles. This data benefits the creation of marketing campaigns, their launch dates, and customer targets.

Business woman holding credit card.

Payment Security is Now the Main Priority

The online payments sector has been under constant and increasingly violent attacks from hackers and cybercriminals. Recently, the number of scams and hacks has enhanced considerably, leaving many users with empty e-wallets.

This concerning status quo has convinced financial providers to boost their defenses. As a result, most payment providers have improved their security protocols to make scamming and hacking less probable.

You may have noticed this change in the emergence of Two-Factor Authentication (2FA) security measures. This process may be time-consuming to some, but it drastically reduces the risk of sensitive data leakage online.

Payment Extension to Other Devices

For decades, paying via credit or debit cards was the only alternative to paying via cash. You can make money transfers and online shopping while paying from various devices thanks to online payments.

For example, you can use a mobile app, an e-wallet, or a blockchain-based payment processor to transfer funds from your account to a merchant.

Additionally, online payments have expanded to other devices. You can pay for stuff with your smartphone or a smart car. Alternatively, you can do it via AI tools embedded in social media platforms, such as Facebook and Instagram. Lastly, IT giants like Apple and Google enable you to purchase online through their dedicated apps and electronic wallets.