# Money and technology – the continued integration of fintech with daily lives Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-12-28 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: The Future of Fintech Payments: Key Trends to Watch in 2022 Meta Description: Discover the latest trends shaping the fintech payments industry, from IoT integration to Buy Now Pay Later services, and stay ahead of the curve in the world URL: https://financedigest.com/money-and-technology-the-continued-integration-of-fintech-with-daily-liveshtml _By_ **_Petru Metzger,_** _Head of Payments, Endava looks at how the rising fintech sector will become ever more present in our daily lives and how we handle money._ There are almost no areas of our lives that haven’t been transformed by technology and nowhere is this more apparent than in fintech and especially payments. The way we handle our money has seen rapid transformation over the last five years due to changes in an ‘online-first’ consumer base. Of course, this [transformation has only been accelerated](https://www.financedigest.com/accelerating-transformation-in-the-workplace.html "Accelerating transformation in the workplace") by COVID-19. The payments industry has therefore attracted huge investment and interest as consumers and businesses require faster, more reliable and more secure [ways of handling payments to ensure a stress-free experience with money](https://www.financedigest.com/best-ways-to-make-money-online.html "Best ways to make money online"). As we progress into the New [Year and the fintech industry](https://www.financedigest.com/2022-the-year-that-facial-recognition-will-lead-the-fintech-industry.html "2022 – The year that facial recognition will lead the fintech industry") continues to grow there are several key trends that are apparent, particularly as consumers continue to demand more from their payments. The drive to mobile has already seen developments such as Apple Pay and Google Pay make [payments](https://www.financedigest.com/what-is-the-optimum-mobile-payment-mix.html "What is the optimum mobile payment mix?") from a mobile device routine, but now when it comes to payments, we’re seeing a transition from mobile to the Internet of Things (IoT). As wearables become more prevalent, we can [expect a surge](https://www.financedigest.com/exclusive-german-govt-expects-inflation-to-surge-to-2-9-in-2021-source.html "Exclusive-German govt expects inflation to surge to 2.9% in 2021 – source") in this segment as well as a host of other devices that will become enabled to make payments. IoT has seen us connect everything from [cars to fridges to the internet and there’s an opportunity to help customers make purchases](https://www.financedigest.com/6-tips-to-save-money-on-your-next-used-car-purchase.html "6 Tips to Save Money on Your Next Used Car Purchase") using them. Further [enhancing the experience](https://www.financedigest.com/enhancing-the-guest-experience-in-hospitality.html "Enhancing the guest experience in hospitality") by adding voice-activation and even gestures will make payments even more natural and convenient. Soon [payments systems](https://www.financedigest.com/main-uk-payment-systems-effectively-privatised-to-one-person.html "Main UK payment systems effectively privatised to one person") will be everywhere, making sure that you never have to reach for your phone or find your wallet to be able to carry out online transactions. The second trend is the new generation of [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") (BNPL). Savvy consumers are turning away from credit cards with their high [interest rates](https://www.financedigest.com/interest-rate-and-recession-fears-knock-stocks-and-oil.html "Interest rate and recession fears knock stocks and oil"), and are looking more at services covered by the Merchant – such as Klarna – to offset costs.. This has been particularly noticeable in the ‘Golden Quarter’, including Black Friday, Cyber Monday and Christmas where approximately 39% of UK consumers have said they were planning to use Buy-Now-Pay-Later (BNPL) to defer festive season expenses. This is not only making retailers sit up and notice, but also the credit [card industry](https://www.financedigest.com/virtual-cards-in-the-travel-industry.html "Virtual cards in the travel industry"), as it considers how it too best provides for customers.. Aside from the fact that by embracing BNPL merchants can generate more sales, the appeal is also that it can be used for far more than simply just payments. BNPL [companies have vast amounts of data that can be utilised by retailers to build customer loyalty with more tailored offerings and can even be used to provide a ‘try-before-you-buy’ service by taking financial](https://www.financedigest.com/how-financial-services-companies-can-successfully-utilise-low-code-and-no-code-technologies.html "How financial services companies can successfully utilise low-code and no-code technologies") burden from retailers. Regulation will be a deciding factor in the future of this segment but it’s clearly here to stay and can be expected to [continue to grow and develop](https://www.financedigest.com/southampton-development-continues-to-excite-local-investors.html "SOUTHAMPTON DEVELOPMENT CONTINUES TO EXCITE LOCAL INVESTORS") a more holistic customer experience. The final trend is data driven identity, which will soon be almost completely defined by [tech companies](https://www.financedigest.com/uk-to-fine-tech-companies-that-fail-to-remove-self-harm-material.html "UK to fine tech companies that fail to remove self-harm material"). In recent years there has been a growing focus on the [security of payments](https://www.financedigest.com/allpay-signs-with-eckoh-to-secure-telephone-payments.html "allpay signs with Eckoh to secure telephone payments"), particularly as more and more of our spending moves online. Authenticating the participants in a transaction is a key concern, however, and banks, processors and card issuers have had to [develop sophisticated anti-fraud and AML solutions to ensure we are who we say](https://www.financedigest.com/crypto-firms-will-develop-offshore-without-clear-us-rules-coinbase-chief-says.html "Crypto firms will develop ‘offshore’ without clear US rules, Coinbase chief says") we are and to reduce risk on transactions. Going forward, these will have to continue to develop. This is not only to combat the ever-evolving threat from fraudsters and hackers, but to also advise consumers on payment methods and assist in their decision-making as they evaluate the best [ways to buy](https://www.financedigest.com/5-top-ways-to-buy-ethereum.html "5 Top Ways to Buy Ethereum") something. Ultimately, the key is to [balance the friction with the risk](https://www.financedigest.com/risk-of-uk-balance-of-payments-crisis-under-truss-is-rising-deutsche-bank-warns.html "Risk of UK balance of payments crisis under Truss is rising, Deutsche Bank warns"), with ‘high-friction’ methods of evaluation required to ensure the security of high-value transactions. Likewise, a ‘low-friction’ model, such as contactless payment, for low cost [purchases is also essential to avoid over-complicating the process and ensure customers](https://www.financedigest.com/britains-nationwide-curbs-cryptocurrency-purchases-by-customers.html "Britain’s Nationwide curbs cryptocurrency purchases by customers") are able to complete the transaction. Biometrics and behavioural analysis are likely to become a significant part of this, as well as further [innovation in user](https://www.financedigest.com/latam-airlines-reduces-cost-per-user-by-83-thanks-to-innovative-ad-technology.html "LATAM Airlines reduces Cost Per User by 83% thanks to innovative ad technology") experience. The security of our [money is of paramount importance](https://www.financedigest.com/how-to-save-money-on-important-documents.html "How to Save Money on Important Documents") and this is something which will continue to receive a lot of attention. There is no doubt that we will continue to develop the payments and overall [fintech sector to meet](https://www.financedigest.com/fintech-incubation-more-value-than-meets-the-eye.html "FINTECH INCUBATION: MORE VALUE THAN MEETS THE EYE") evolving customer and consumer demands. We have seen incredibly fast development over the [last five years and this is set](https://www.financedigest.com/last-apartments-set-sail-southend.html "Last Apartments To Set Sail In Southend") to continue at a rapid pace. Generations that have grown up with [contactless and swift online payment wherever they happen to be are unlikely to be willing to go back to cash](https://www.financedigest.com/cash-me-if-you-can-the-future-of-contactless-commerce.html "Cash me if you can: The future of contactless commerce") transactions. As we increasingly move into a cashless society, [companies will have to keep up with their needs through further technological](https://www.financedigest.com/5-top-tips-on-how-to-grow-a-technology-company.html "5 Top Tips on how to grow a technology company") investment and innovation. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---