Payment Processing Trends in 2023

In the coming year, experts are predicting a mass acceleration towards digital payment methods. As a business owner, now is the time to consider your operating model, technology, digital identity, and customer preference. The most important thing is to keep your customers happy, it keeps them coming back. 

In the past year, the use of digital wallets has increased immensely. The new digital age provides several resources for customers such as apple wallet, tap and bank apps that let you use your debit and credit cards virtually. To better understand the development of what is to come in 2023, let’s take a look back at the payment processing trends of 2022. 

Building the Digital Infrastructure 

In 2022, there was a significant shift across the payment industry in both the consumer and corporate districts. Real-time payments, the choice of digital payment, and expansion of crypto currency has created a continuous shift. This digital evolution is forcing banks, businesses and the tech industry to reconsider operating models in order to drive consumer satisfaction. Tech giants and traditional banks are now challenged to develop cohesive methods in order to accommodate. Have we reached the point of digital payment dominance?

Increased Real Time Digital Payment Options

Digital payment options have gained traction with both consumers and businesses. More often than not, customers are met with tap to pay and digital wallet options. This possibly permanent shift away from traditional payment methods began during the pandemic. Many cash only and traditional credit payment establishments began to offer alternative payment technologies to decrease interaction and accommodate online shoppers. Today, consumers have a multitude of transaction choices. But with choice comes division of service. 

Digital Identity Strengthening

As more companies utilize these functionalities, opportunities to incorporate digital identity have continued to rise. In order to fully adapt, these organizations must choose the proper technology and payment processing programs to keep up with the current and ever growing technologies and trends. Trends such as omnichannel customer verification, product and service improvement and competitive positioning were at the forefront of 2022. 

What to Look for in 2023

2023 trends are predicted to be similar to that of 2022, focusing on digital payment options. In October 2022 Amazon announced they will begin accepting Venmo payments. When you are as big of a conglomerate as Amazon, you tend to create your own trends.

Alternative payment apps are set to release new features to allow consumers to use their app as a tap to pay function. This will increase the mass digital wallet trend, not only from money exchanging applications but those provided by your financial institution. 

Neobanks are set to rise. Neo banks offer P2P exchanges. The consumers who view neobanks as a secondary bank are predicted to increase their frequency of use of fintech. 

Alternatively, debit card preference will continue to grow. Experts say consumers are more drawn to debit card usage than credit because it pulls the money straight from your account, as opposed to adding debt. 

Whatever payment processing trends 2023 has to hold, your choice of payment processor is key.


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