# Tracking the payments evolution Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-02 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: The Future of Payments: Cashless Society Predictions by 2031 Meta Description: Discover how the evolution of electronic payments, from QR codes to biometric technologies, is shaping the future of transactions in a cashless world. URL: https://financedigest.com/tracking-the-payments-evolutionhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1252574961-1736815301860-compressed.jpg) _By_ **_Kosta Du,_** _CEO of Dapio_ It is predicted that by 2031, [only one in every twenty transactions will be made in cash](https://www.telegraph.co.uk/money/consumer-affairs/death-cash-nears-just-one-20-transactions-will-use-notes-coins/). The pandemic prompted businesses to quickly move as much of their operations online and implement entirely digital payment systems, so the transition to a cashless society is a logical step in the evolution of how customers and businesses interact with payments. The [next step](https://www.financedigest.com/open-finance-the-next-step-for-global-digital-transformation.html "Open finance – the next step for global digital transformation") is determining how much we interact with electronic payments. Innovative [payment methods include QR codes and digital](https://www.financedigest.com/can-i-please-speak-to-someone-why-building-relationships-is-still-crucial-in-digital-payments.html "“Can I please speak to someone?” Why building relationships is still crucial in digital payments") remittance, and they have an impact on all facets of society. **The** [rise of contactless payments](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") During the pandemic, businesses were under pressure to make sure their [business could succeed](https://www.financedigest.com/how-local-communities-are-helping-local-businesses-succeed.html "How local communities are helping local businesses succeed") in a suddenly digitised, touchless world. mPOS, the mobile point of sale, makes transactions easier and affordable, so when everything moved online, the [benefits became clear](https://www.financedigest.com/clearing-out-your-garage-benefiting-from-corporate-simplification-2.html "Clearing Out Your Garage – Benefiting from Corporate Simplification ") and mPOS naturally grew. In response to the low-touch economy, they even turned to earlier solutions, such as the comeback of QR codes which were mainstream in the public in the 2010s with retailers like Alipay using them in China as a contactless [payment method](https://www.financedigest.com/freelancer-payments-methods-what-you-should-know.html "Freelancer Payments Methods: What You Should Know"). In 2020, Apple bought the financial company Mobeewave in response to the expanding low-touch economy, [launching their own Tap to Pay](https://www.financedigest.com/britain-launches-scheme-to-pay-homes-to-curb-electricity-use.html "Britain launches scheme to pay homes to curb electricity use") solution. The rush to introduce a Tap to Pay solution to the market has grown competitive as big technology [businesses want to participate in the next generation of payment](https://www.financedigest.com/technology-is-a-tonic-for-late-business-payments.html "TECHNOLOGY IS A TONIC FOR LATE BUSINESS PAYMENTS") technologies. This launch will no doubt attract some attention, but [providers will be competing across Apple and Android to prove to microbusinesses and sole traders that their platform](https://www.financedigest.com/newly-launched-quintessential-to-provide-prestige-living-management-platform-for-prs.html "Newly launched Quintessential to provide ‘prestige living’ management platform for PRS") offers seamless integration and usability. [**Next gen payments**](https://www.financedigest.com/the-next-frontier-of-payments.html "The next frontier of payments") So, how can we expect to see [payment technologies develop in the next few years](https://www.financedigest.com/2019-year-customers-take-control-payments.html "2019: The year customers take control of payments")? With cashless and contactless [payments now widely accepted as the future](https://www.financedigest.com/the-future-of-biometrics-in-payments.html "The Future of Biometrics in Payments"), new technologies are rapidly developing, and businesses will need to be agile to keep up. From the perspective of the consumer, we are quickly moving in the direction where you won’t even [need to take your wallet or phone out of your pocket](https://www.financedigest.com/soccer-deep-pockets-needed-to-persuade-glazers-to-sell-united.html "Soccer – Deep pockets needed to persuade Glazers to sell United") to make purchases. Although they may have been viewed more as a novelty than as a long-term viable solution, smart watches have already contributed to the [contactless revolution](https://www.financedigest.com/contactless-technology-a-revolution-in-travel.html "Contactless Technology: A Revolution in Travel"). However, it’s possible that similar [technology will soon be applied to other wearables](https://www.financedigest.com/is-wearable-technology-ushering-in-a-brave-new-healthy-world.html "Is wearable technology ushering in a brave new healthy world?") like bracelets and rings – anything that could readily double as a more convenient form of payment. This [leads on to how consumer](https://www.financedigest.com/leading-credit-reference-agencies-launch-industry-wide-information-notice-to-support-lenders-and-consumers-in-gdpr-world.html "Leading credit reference agencies launch industry-wide information notice to support lenders and consumers in GDPR world") hardware is being eliminated entirely. For example, Mastercard [launched a pilot biometric payments programme](https://www.financedigest.com/uk-to-launch-new-billion-pound-home-insulation-programme.html "UK to launch new billion-pound home insulation programme") in its stores in May, using facial recognition technology to explore how customers could pay with a wave or a smile. No wallet, no phone, no jewelry – just yourself and a smile! Similarly, we could [see payments by voice command eliminating the need to tap](https://www.financedigest.com/portugal-pm-welcomes-lufthansas-interest-in-tap-scholz-sees-good-fit.html "Portugal PM welcomes Lufthansa’s interest in TAP, Scholz sees good fit") a device too. Using speech recognition as a popular [biometric has become mainstream through Google’s voice](https://www.financedigest.com/speaking-clearly-the-case-for-voice-biometrics.html "Speaking Clearly: The Case for Voice Biometrics") assistant, Amazon’s Alexa and Apple’s Siri, as all major technology players see the potential in voice-led convenience. It doesn’t just open up possibilities for frictionless [experiences in payments](https://www.financedigest.com/curating-a-fully-contactless-customer-experience-for-payments.html "Curating A Fully Contactless Customer Experience for Payments "), but can also prove to assist with accessibility in payments too, as those who may struggle to use a card machine or with tapping a phone will be able to use their voice instead. Additionally, consumers increasingly don’t [need to pay for products and services upfront with the rise of Buy](https://www.financedigest.com/do-you-need-to-buy-guest-post-services-why.html " Do You Need to Buy Guest Post Services? why?") Now Pay Later (BNPL). This has been deemed as the perfect intersection of payments and lending, as it provides consumers with spending protection, but is still divisive as it discourages saving, as well as prompting questions around the effect on [credit scores](https://www.financedigest.com/how-to-raise-my-credit-score-40-points-fast.html "How to raise my credit score 40 points fast"). Payment solutions are [moving into financial wellness and looking at providing features which are both easier and more efficient](https://www.financedigest.com/tips-for-moving-office-how-to-use-packing-boxes-efficiently.html "Tips for Moving Office: How to Use Packing Boxes Efficiently"), but also can improve spending experience overall. Of course, innovative leaps forward come with significant obstacles, and there is much discussion around how these technologies could be [implemented securely](https://www.financedigest.com/how-cloud-is-driving-forward-implementation-of-zero-trust-security.html "How Cloud is Driving Forward Implementation of Zero Trust Security"). Facial recognition technology in particular invites privacy concerns, and these should be at the forefront of thinking for [developers looking to take the payments](https://www.financedigest.com/payment-community-engagement-in-the-development-of-the-emv-specifications-increases.html "Payment Community Engagement in the Development of the EMV Specifications Increases") space into a new age. We’ve even seen examples of [microchip implants used to make payments](https://www.bbc.co.uk/news/business-61008730), though again this invites plenty of privacy concerns. These difficulties are not insignificant, but they will always be a part of the [innovation process](https://www.financedigest.com/how-can-stream-processing-act-as-a-catalyst-for-innovation-in-financial-services.html "How Can Stream Processing Act As A Catalyst For Innovation In Financial Services?"). These [challenges are always overcome](https://www.financedigest.com/5-challenges-to-overcome-in-governance-risk-and-compliance-magazine.html "5 Challenges to Overcome in Governance, Risk and Compliance-Magazine") as long as people remain open to change, and technology continues to advance – as evidenced by the ongoing expansion of contactless spending restrictions. Before we know it, tap to pay, biometrics, and voice instructions will feel natural. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---