Payments systems have changed their format. Now everyone is optioning for the digital payments. For the last 4- 5 years, the 4G introduced in the market; the digital payment system has boosted. There are many digital payments system in the payment ecosystem. Since the last few years, we have seen tremendous growth in the digital payment providers. India’s largest digital payment governing firm is the NPCI (National Payment Corporation of India). It regulates the digital payments of India. NPCI has introduced the new features called UPI (Unified Payment Interface) used by most digital channels. It is growing day by day as the digital payments are booming in the industry. UPI is emerging as the largest payment provider in India. India has 45 mobile wallet providers and 50 UPI based wallet providers.
What is a dynamic payment system?
Dynamic payments is a payment system used on multiple channels. It is useful for frequent payments after some time.
Why use a dynamic payment system?
Dynamic payments ensure the correct amount and real-time billing system. It is easy for different merchants to verify the amount to deduce.
What are the advance options for the dynamic payment future?
1. Biometric authentication:-
Biometric authentication provides the highest security measures. There is no need to remember the pin, password to access the account. It will reduce the chance of piracy and ensures security.
2. Tap and pay Payments:-
Tap and pay payments are some of the easiest ways to perform digital payments. There is no need to swipe the card and tap the cards and complete the transaction. Debit/credit cards with the EMV chips used in Tap and pay systems. It reduces transaction time and increases data security.
3. Invisible Payment:-
Invisible payments are the new kind of payment system where only one-factor authorization will use. It is for the specific service consumer used or the consumer’s time to use service with the prior consent of charge. It is useful in case of recurring payments.
4. Voice Payment:-
Voice payments are the next invention by big tech companies. Many of MNC giants are working on these to introduce it as the next invention.
5. Face Recognition:-
Face recognition is one of the safe payment systems available for a transaction. It is with the camera system. Whenever the customer avails the service, it will start the camera and captures the image. It is one of the fastest and safest ways of payment.
What new aspects of dynamic payment systems?
There are many aspect trends involve in developing the trends in the dynamic payment ecosystem.
1. Open payment ecosystem:-
An open-format is the single way of managing an ecosystem where consumer performs all the task in the single ecosystem. Payments in a single ecosystem introduce new business models. It will reduce dependence on the app and devices. New kinds of commercial models and firms can develop.
2. Upgrading payment system:-
New payment systems will get introduced in the market. It will reduce time caused to perform the transaction and increase security measures while developing the new ecosystem—the new alternatives for a credit card, debit card. New technologies like cloud computing will use for a modern payment system. One of many organizations will work with each other to perform a different task.
3. Reframing the money flow system for better management:-
Regulation related to money flow can be design for better customer data security and money management. Money flow management will become a serious concern as the multiple currency transactions will happen in the new payment ecosystem. Many new international standards must introduce to increase authentication.
4. Working of payment ecosystem:-
The new environment of working can introduce many payment providers. The currency exchange will become easier. The working payment ecosystem will change as per the new firms will play in the market. Some of the payment firms have started restructuring the payment systems. Team building and collaboration is required.
5. Skilled employees:-
The new skills will be introduced in the market for the new employees to manage the workload and payment system. The employees must work with the new kind of agility principle to get familiar with the technology. Companies must invest in the training and development of new employees.
Companies must start preparing the new training for the employees and reform the company structure considering the technologies, infrastructure, and standards and regulations. In India, the new firms and startups are starting the payment systems. They must ensure when and where to invest? And why invest? They must introduce new models of the payment system. It will ultimately create a new horizon for the dynamic payments in the market.