# 2022 – the year ‘future payment trends’ become reality? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-12-28 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: 2022 Payment Trends: Digital Currencies, Buy Now Pay Later Meta Description: Explore the key trends shaping the payment landscape in 2022, from digital currencies to Buy Now, Pay Later options. Stay ahead of the game with insights from URL: https://financedigest.com/2022-the-year-future-payment-trends-become-realityhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1154923171-1-1736836534256-compressed.jpg) ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/robert-hoffmann-ceo-of-merchant-services-at-nets-450x360-1736836534221-compressed.jpg) The payment world today is unrecognisable from the beginning of last year. Consumers are so much more willing to try new payment technologies, especially if they are quicker and more hygienic (i.e. touchless). This rapid rate of change will continue on a global scale in 2022, writes Robert Hoffmann, CEO of Merchant Services at Nets, as consumer [expectations for innovation keep](https://www.financedigest.com/commerzbank-keeps-outlook-as-lower-q3-profit-still-beats-expectations.html "Commerzbank keeps outlook as lower Q3 profit still beats expectations") growing. **His three big trends to keep an eye on in 2022 are:** 1. [**Digital money for digital lives**](https://www.financedigest.com/coindirect-makes-digital-currency-trading-simple-now-live-in-uk-south-africa-nigeria-and-kenya.html "Coindirect makes digital currency trading simple, now live in UK, South Africa, Nigeria and Kenya") Interest in Central [Bank Digital](https://www.financedigest.com/igtb-launch-digital-transaction-banking-available-as-saas.html "iGTB launch Digital Transaction Banking available as SaaS") Currencies (CBDCs) has been growing, fuelled by the rapid European-wide digitisation of payments during the pandemic, as well as growing interest and competition from cryptocurrencies (i.e. Bitcoin) and stablecoins (i.e. Tether). Digital currencies issued by central and [national banks](https://www.financedigest.com/swiss-national-bank-says-inflation-battle-not-yet-won.html "Swiss National Bank says inflation battle not yet won") are coming: it is only a matter of time. The underlying [technology for digital](https://www.financedigest.com/digital-technology-and-startups-during-a-recession-how-to-stay-afloat.html "Digital Technology and Startups During a Recession — How to Stay Afloat") currencies like the e-Euro or the e-Krona is the same as for cryptocurrencies – in other words, it already exists! We just need regulation to catch up and to [ensure the supporting](https://www.financedigest.com/strategic-budgeting-ensures-success-of-community-support-programs.html "Strategic Budgeting Ensures Success of Community Support Programs") technology does not exclude anyone. Each member of the value chain is looking to protect and optimise their own interests and presence, but be in no doubt, digital currencies will fundamentally change the global [payments landscape](https://www.financedigest.com/5-predictions-for-payments-landscape-in-2022-and-our-reflections-on-2021.html "5 Predictions for Payments Landscape in 2022 and our reflections on 2021"). In 2022, expect more national pilots, rollouts and regulatory adjustments to prepare for the biggest shake-up to money in a generation. 2. **The time is now for Buy Now,** [Pay Later](https://www.financedigest.com/the-pros-and-cons-of-buy-now-pay-later.html "The Pros and Cons of Buy Now Pay Later") Paying in digital instalments, often without added fees, is forecast to be worth $995bn in 2026. For merchants, the benefits are vast. It boosts [sales and drives](https://www.financedigest.com/apples-weak-iphone-sales-drive-first-profit-miss-since-2016.html "Apple’s weak iPhone sales drive first profit miss since 2016") conversion rates by 20-30%, attracting consumers with more flexible payment options. It tends to increase basket value, [trust and loyalty](https://www.financedigest.com/how-to-maintain-customer-loyalty-and-trust-in-the-face-of-a-pandemic-and-digital-competition.html "How to maintain customer loyalty and trust in the face of a pandemic and digital competition") too. Successful start-ups and incumbents are increasingly offering this solution to appeal to [Millennials and Generation Z consumers](https://www.emarketer.com/content/almost-75-of-bnpl-users-us-gen-z-millennials), who are used to more flexible digital payment methods. The [growing popularity of BNPL means that businesses that do not provide this option risk](https://www.financedigest.com/euro-zone-economy-faces-growing-risk-of-recession-survey-shows.html "Euro zone economy faces growing risk of recession, survey shows") having a significant portion of their potential customers go elsewhere. To gain an advantage in 2022, the entire [purchase journey should be adapted to leverage the strengths of BNPL and the preferences of customers](https://www.financedigest.com/britains-nationwide-curbs-cryptocurrency-purchases-by-customers.html "Britain’s Nationwide curbs cryptocurrency purchases by customers") in different markets. For example, in the DACH region, open invoicing – where the [consumer typically has 30 days to pay](https://www.financedigest.com/best-paying-jobs-in-finance-consumer-services.html "Best Paying Jobs in Finance Consumer Services") after receiving their purchase – is king. This has long been the preference of DACH consumers, and by offering multiple BNPL options, [businesses can migrate such consumers](https://www.financedigest.com/essity-mulls-selling-vinda-stake-and-consumer-tissue-private-label-europe-business.html "Essity mulls selling Vinda stake and Consumer Tissue Private Label Europe business") to familiar – yet more digital – ways to pay. In 2022, regulators in the EU and the UK are looking to further understand and balance the [need for growth and innovation with protection for consumers who love the newer payment](https://www.financedigest.com/stay-ahead-of-the-curve-and-meet-your-customers-payments-needs.html "STAY AHEAD OF THE CURVE AND MEET YOUR CUSTOMERS PAYMENTS NEEDS") methods. Until this is in place, [expect BNPL payments to continue](https://www.financedigest.com/synechron-continues-to-shine-with-expected-record-revenue-growth-of-28-amounting-to-405m-in-the-financial-year-2016-17.html "Synechron continues to shine with expected record revenue growth of 28% amounting to 5m in the financial year 2016-17") their very rapid ascent. 3. **Waving goodbye to PINs** Consumers are increasingly [becoming the main authenticator for payments](https://www.financedigest.com/why-payments-have-become-the-next-battleground-for-banks.html "Why payments have become the next battleground for banks"). Biometrics are used to secure mobile wallets such as Apple Pay, and biometric [payment card trials are taking place to bring the technology](https://www.financedigest.com/technology-is-a-tonic-for-late-business-payments.html "TECHNOLOGY IS A TONIC FOR LATE BUSINESS PAYMENTS") into traditional wallets. Such use will grow in 2022 as the [technology scales and becomes more trusted](https://www.financedigest.com/how-to-create-a-more-efficient-transparent-and-trusted-supply-chain-for-the-gold-jewellery-industry-using-blockchain-technology.html "How to create a more efficient, transparent and trusted supply chain for the gold jewellery industry using blockchain technology") and familiar to cardholders. Largely this will be conducted with fingerprint technology, but ultimately we should expect payments to be authenticated automatically via [facial recognition](https://www.nets.eu/Media-and-press/news/Pages/Nets-Trials-Face-Payments-in-Copenhagen.aspx). This will remove friction from the transaction, enabling customers to [pay for travel or groceries simply by walking](https://www.financedigest.com/thousands-of-british-postal-workers-walk-out-over-pay.html "Thousands of British postal workers walk out over pay") through a terminal or shop, using infrastructure that links their purchases to their wallet. In 2022, it will be essential to continue to test and evaluate new form factors to address market demands and understand how people perceive and react to non-traditional [payment methods](https://www.financedigest.com/freelancer-payments-methods-what-you-should-know.html "Freelancer Payments Methods: What You Should Know"), particularly if they have to consider trading privacy for convenience. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---