Payment technologies: get to know the main ones

“The future belongs to those who believe in the beauty of their dreams” – Eleanor Roosevelt. The future of payments is here, thanks to financial technology.

It is changing the way we transact online, bringing new things to our lives.

A Mastercard survey in April 2024 showed that 89% of Brazilians want to use new means of payment.

Security is the main reason, cited by 59% of people. Another 36% prefer it because it is convenient and 31% because they are already familiar with the service.

The news payment technologies make transactions faster, easier and safer. This article will show you the main financial technologies on the market.

You will understand how they are changing the world of payments.

Key Learnings

• 89% of Brazilians are willing to use new means of payment
• Security and convenience are the main reasons for adopting new payment technologies
• Pix, digital wallets and contactless payments are among the most used technologies
• Blockchain and Embedded Finance are innovative features that support secure transactions
• Biometrics and facial recognition add additional layers of security to digital operations

What is payment technology?

Payment technology is a set of digital resources that makes financial transactions fast, safe and practical.

She accompanies the evolution of payment methods, adapting to new habits and market demands.

With the rise of e-commerce and the digitalization of services, payment technologies are crucial to offering secure and seamless shopping experiences.

These include methods such as virtual cards, digital wallets, contactless payments, instant transfers and cryptocurrencies.

According to a study by Juniper Research, the value of transactions via push payments will surpass US$1 trillion globally this year, highlighting the rapid adoption of these payment solutions.

Payment technologies bring benefits to both consumers and businesses.

According to McKinsey, companies that adopt new payment technologies can increase their customer base by up to 20%.

This is because these solutions simplify processes, reduce costs and improve efficiency.

Some examples of how technology is revolutionizing means of payment include:

• Data tokenization, which replaces sensitive information with encrypted codes, increasing the security of online transactions.
• Instant payments, such as Pix in Brazil, which allow real-time transfers between bank accounts.
• Digital wallets, which store payment data and facilitate purchases with just a few clicks.
• Biometrics and facial recognition, which add extra layers of authentication for more secure transactions.

That evolution of payment methods because technology is changing how we make financial transactions.

The growing demand for convenience, security and speed makes it crucial to keep up with trends and adopt innovative solutions.

This action certainly helps to meet consumer expectations and remain competitive in the digital market.

+ Inventory turnover: what it is, how to calculate it and tips for managing it

How has technology transformed payment methods?

Technology has changed the way we make financial transactions. Payments are now fast, efficient and secure. This makes buying and transferring money easy and convenient.

Today, international payments are made in seconds. This helps in global trade and business growth. Security has improved with encryption and biometric authentication, reducing fraud.

New methods such as digital wallets and cryptocurrencies have emerged. They provide a better shopping experience, with payment options that suit everyone's needs.

With the advent of the internet, online payments have become increasingly popular. Solutions like PayPal have made transactions quick and easy, using card details or bank account information.

Fintechs have brought mobile payments. Now, you can pay via smartphone apps with Apple Pay, Google Pay, and Samsung Pay. This enables secure contactless transactions via NFC.

Cryptocurrencies, like Bitcoin, have emerged. They use blockchain to make secure and fast transfers, without intermediaries.

Advances in payment authentication have improved security. We now use biometric recognition and contactless payments, making purchases faster and safer.

Companies like Justa brought innovations like PIX and contactless payments. They have helped make financial transactions simpler, faster and safer.

Technology has changed the world of financial transactions. It has simplified, made them safer and more convenient. It has improved consumers’ lives by making commerce more accessible and efficient.

+ Blockchain Technology: What is it?

Main payment technologies

Payment technologies are changing rapidly, making financial transactions easier, safer and faster.

You payment links allow you to send invoices via email, WhatsApp or SMS. Pix, an instant payment system from the Central Bank, already has more than 115 million users in Brazil.

QR Codes are becoming increasingly popular for contactless payments. They allow you to pay quickly using your phone's camera.

Cryptoassets and digital wallets are changing how we use money, offering secure and decentralized options.

Contactless payments grew by 540% in the first half of 2021. This technology allows you to pay without having to enter a password, just by bringing your card or mobile device close to the machine.

The technology blockchain can change many sectors, including payments, bringing more security and reducing costs.

O embedded finance integrates financial services into non-financial companies, making payments easier and more accessible.

These technologies are becoming more popular, thanks to digitalization and the search for easier and safer payments.

Brazil is one of the leaders in innovation in the payments sector, opening space for new players and disruptive solutions.

Payment links

You payment links are changing the way we sell products. They make purchasing easier for the buyer.

With them, sellers send a direct link for payment, without extra steps.

A survey showed that 411% of Brazilians want more control over what they buy. And 26% want shopping to be more fun.

You payment links they do this, making purchasing quick and practical.

Another study said that 651% of consumers prefer to shop on sites that have fast online payments. Using payment links can increase sales and make customers happier.

Payment links are a great way to sell more in multiple places like WhatsApp, Instagram, and email.

With a single click, the customer goes to a secure payment page and can purchase quickly and easily.

The main advantages of payment links are:

• Minimum value for sales from R$ 1.00
• Installments in up to 12 times
• Competitive rates for payment in cash or in installments
• Acceptance of major card brands and payment methods
• Discounted shipping options up to 70%
• Protection against loss and misplacement
• Security features such as facial biometrics and secure purchase
• Transactions without the need for a physical or virtual card
• Fast receipt of payments into the seller's account

With so many benefits, it’s easy to see why payment links are becoming more popular.

They enable businesses of any size to sell more, improve the customer experience, and make more money.

Pix

Pix is the preferred payment method since November 2020. It allows instant transfers anytime, every day. This has changed how we deal with money.

Transactions via Pix grew by 57.8% in 2023, reaching R$17.18 trillion. This shows how popular Pix has become quickly.

Pix is fast, has no fees and can be used in apps and QR Code. This makes transactions more convenient.

It allows instant transfers, 24/7 availability and advanced security, and is also open to different financial institutions and has multiple use cases.

It uses digital certificates and encryption to protect data. This keeps transactions secure.

Pix has reduced the use of cash and increased electronic transactions. This benefits banks and fintechs, boosting digitalization.

The Central Bank plans to expand Pix even further. Automatic Pix will be launched in October 2024. They also plan to internationalize the system.

In short, Pix is a revolution in payments. With its constant evolution, it will become even more popular in the coming years.

+ Do you accept Pix? Tips for accepting payments via Pix safely

QR Code

O QR Code was created in 1994 by Denso-Wave, a Toyota group company. It is an evolution of the traditional barcode.

That two-dimensional barcode can store up to 7,089 characters. In comparison, a typical barcode has only 20 digits.

O QR Code It brings many benefits to both sellers and buyers. It helps reduce costs and is easy to use.

It is also safe, fast and can be used in loyalty programs. With it, you don't need to enter bank or business details to make payments.

To make a transaction, simply scan the QR Code with a financial app. This makes shopping easier. practices. Juniper Research predicts that 2.2 billion purchases and payments will use QR Codes by 2025.

Digital banks, such as Nubank and Inter, use QR Codes to facilitate transactions and customer identification.

It is also used in museums to transmit information, speed up access to web pages, at events and to sell tickets.

A survey showed that 82% of respondents feel safe using QR Code for transactions.

The use of QR Codes is growing in Brazil, along with the digitalization of payments. Pix helped popularize technologies such as QR Codes.

This increased sales and customer satisfaction, as one says. Ecommerce Brasil article.

QR Code payments are secure because they do not send personal data. They are updated regularly and use encryption to protect data.

To use a QR Code, you only need a smartphone. Creating these codes is easy and free, which makes the technology accessible to everyone.

Cryptoassets

You crypto assets, like the cryptocurrencies, NFTs and tokens, are gaining prominence in the financial market. They are seen as an innovative way of financial reserve and transactions.

Those digital assets offer speed, security and cost reduction.

85% of companies with annual revenue of US$$ 1 billion are adopting cryptocurrency payments.

These initiatives attract new customers. 82% of businesses prefer to eliminate intermediaries. 77% of merchants accept cryptocurrencies because of the lower transaction fees, as shown in a article.

Cryptocurrency adoption is still growing, especially in areas like gaming and media. Crypto payment gateways facilitate payments in cryptocurrencies. This makes transactions faster and more efficient.

You payment gateways Cryptocurrency exchanges are popular among crypto enthusiasts. They are already used on several websites of well-known brands. They allow you to quickly convert cryptocurrencies into fiat currency.

Blockchain technology is also attracting traditional players. It offers speed, cost reduction, and reliability. Countries such as the United States and China are adopting cryptocurrencies.

Some countries are integrating crypto assets in your savings:

• El Salvador adopted Bitcoin as legal tender in 2021. This boosts the local economy and facilitates international remittances.
• China launches CBDC, the digital yuan, in a pilot phase. It is used in shops and port regions for cross-border payments.
• Brazil is in the pilot phase with Drex (Real Digital). It aims to make financial services more accessible and efficient.
• The BRICS are considering creating their own CDBC. This would facilitate payments between the countries of the bloc.

Cryptocurrencies can make financial services more democratic and accessible. They offer low transaction costs and security. This allows for fast and efficient transactions.

Governments can benefit from stablecoins and CBDCs. They simplify international remittances and combat fraud.

Blockchain records transactions immutably, driving financial innovation.

Digital Wallet

Digital wallets are changing how we use money and make purchases. These payment apps keep card information in a safe way. This allows contactless shopping in an easy and practical way.

A study by Worldpay showed that in 2022, digital wallets were used in 49% of online purchases worldwide.

In Brazil, they are the third payment method, accounting for 18% of purchases. They are expected to grow to 28% of purchases in Latin America over the next three years.

87% of respondents find digital wallets secure. 67% said they have used them in the last six months.

With Internet Banking and PIX, they are changing how we make financial transactions in all types of stores.

Digital wallets are offered by banks and technology companies through apps or websites. Some examples are:

• PayPal
• Google Pay
• Apple Pay
• Mercado Pago

Digital banks such as Banco Inter, Nubank and C6 Bank also have their own digital wallets. They operate online and offer checking accounts, investments and credit cards.

BTG Pactual is the largest investment bank in Latin America. It is a leader in the adoption of digital wallets in Brazil, with several platforms for users.

Digital wallets are easy to use and secure. They allow you to make instant payments anywhere. They use encryption and multi-factor authentication to protect transactions.

The security of digital wallets comes from data encryption. They use NFC for payments in physical stores.

By 2025, more than half of the world’s population is expected to use digital wallets, says Juniper Research. In 2020, 2.4 billion people already used such wallets. The growth is fast and promising.

Contactless payments

Contactless payments have changed the way we shop. They use technology NFC to make quick, password-free transactions for small purchases.

To use it, you need a card or smartphone with NFC. Banks like Nubank and Caixa Econômica Federal have cards with NFC.

Android smartphones and iPhones from model 6 onwards can also use contactless payments with Google Pay and Apple Pay.

To sign up, go to your bank's website or use the app. Caixa Econômica Federal, for example, has several channels for signing up. At Nubank, there were 72.3 million contactless payments in 2020.

Contactless technology is fast and secure. It uses encryption to protect data, just like when shopping online.

When you pay by contactless payment, you keep your card or smartphone in your hand. This reduces the risk of data theft. You also have full control over your data, maintaining privacy.

See a comparison of digital wallets for contactless payments in Brazil:

The WHO recommends using contactless payments to prevent the spread of coronavirus. They reduce physical contact.

If you want convenience and security when shopping, contactless payments are great. Make sure your card and smartphone are compatible with NFC.

Blockchain

Blockchain technology is changing payment systems. It offers a decentralized system safe and reliable.

Using encryption advanced, protects information and ensures the reliability in transactions. This eliminates the need for intermediaries.

Cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash are used in blockchain transactions.

Large companies such as BitPay, Coinbase Commerce, PayPal, Square, Ripple, Bitwage, IBM, Mastercard, Visa, Abra and Banco do Brasil already use blockchain payments.

Blockchain transactions are recorded and verified in real time. This brings transparency and reduces fraud. Additionally, blockchain payments have lower costs than traditional systems.

Smart contracts on the blockchain allow for the automatic execution of pre-determined conditions. This makes processes more efficient and secure.

Companies like IBM, Mastercard and Visa are developing blockchain solutions to improve the security and efficiency of payments.

According to IBM, blockchain technology refers to a shared ledger that facilitates the recording of transactions and tracking of assets, allowing anything of value to be tracked through a chain of blocks.

In the banking sector, blockchain simplifies identity verification and reduces costs and times in international transfers.

In e-commerce, it revolutionizes online payments. It eliminates costly intermediaries, reduces fraud and increases consumer confidence.

To get the most out of blockchain in payments, it is important to establish common standards.

It is also crucial to promote collaboration between those involved and implement governance mechanisms that ensure trust and transparency.

Embedded Finance

O Embedded Finance is a technology that allows service integration financial in applications and platforms of non-financial companies.

This enables retail, telecommunications, agribusiness and startup companies to offer financial resources easily. They don't need to change their core business to do so.

With Embedded Finance, businesses can make more money and deliver more value to customers.

They can integrate services like digital accounts and credit lines. This helps personalize the user experience and better meet their needs.

Additionally, this can make customers more loyal, strengthening their bond with the platform.

According to a study by the consultancy Deloitte, embedded finance is expected to move approximately R$24 billion by 2026 in Brazil.

APIs are essential to Embedded Finance, facilitating communication between software systems. This allows non-financial companies to access valuable customer data.

This way, they can offer more personalized financial services.

Some advantages of Embedded Finance include:

• Financial flexibility, allowing users to customize their services according to their needs
• Greater convenience for consumers with solutions such as mobile payments and digital wallets
• Possibility for any company to become a credit card issuer through solutions such as BIN Sponsor
• Valuable insights into customer habits and preferences from financial transaction data

Large companies are already using Embedded Finance. Magalu, for example, created MagaluPay to facilitate online purchases.

QuintoAndar, from the real estate market, offers financing for renovations and a line of credit for brokers and real estate agencies.

Embedded Finance can change the payments market, making it more competitive and inclusive.

Businesses can become more technologically savvy and stand out from the competition. This can help retain customers, attract more people, and save on banking services.

Biometrics and Facial Recognition

Biometrics and facial recognition bring security and agility to payments. They eliminate the need for passwords or cards. This makes user authentication faster and safer.

These technologies bring many benefits, such as:

• Purchases up to 9 times faster than other methods
• Personalized service, knowing the customer by name
• Compliance with LGPD when handling customer data
• Dematerialization of credit cards
• Identification in loyalty programs without entering your CPF

Facial biometrics are effective in speeding up purchases and improving the customer experience. They help combat e-commerce fraud, which cost US$1.4 billion in 2022.

See the comparison between transaction times of different payment methods:

A Mastercard pilot project showed that 761% of participants liked biometrics in Brazil. In China, facial recognition is common in restaurants and for paying for orders.

While PYMENTS research shows a preference for fingerprints, Gen Z prefers facial recognition.

Visa and AYTM Market Research show that 85% find biometric authentication fast and 89% prefer biometrics to passwords.

According to research by Visa in partnership with AYTM Market Research, 85% of Brazilian consumers consider biometric authentication to be faster, while 89% stated that using biometrics is easier than memorizing passwords.

Juniper Research predicts the biometric payment market will grow by 120% by 2025. By 2022, the volume of biometrically authenticated payments is expected to reach US$ 322 billion.

Research in Brazil shows that consumers trust biometrics:

• Dentsu Data Labs Survey: 90% of Consumers Approve of Using Biometrics to Authenticate Payments
• 70% of consumers believe that digital identification provides greater protection for card data and fraud prevention
• During the pandemic, 82% of consumers preferred contactless payments

Despite the benefits, there are legal concerns about collecting and storing biometric data. Companies like Target, Amazon, and T-Mobile have faced lawsuits. This shows the importance of security measures and transparency.

Facial biometric payment technology makes transactions fast and secure. It is a promising trend in the payments market.

Conclusion

This article showed the main payment trends and disruptive technologies. They are changing the future of payments in Brazil and around the world. Since the beginning of the 21st century, the use of electronic payments has grown significantly.

Innovations such as NFC technology, which allows contactless payments, have gained prominence. The emergence of digital wallets and wearable technologies in 2012 has brought diversification and advancement.

Pix, launched in 2020, brought a new way of instant transfers between accounts.

For entrepreneurs and businesses, it is crucial to keep up with the payment trends. This helps meet customer needs for convenience and speed.

Understanding your customers’ purchasing profile and using the right technologies can prepare you for the future.

FAQ

What are payment technologies?

Payment technologies are digital tools that facilitate online purchases and sales. They offer fast, accessible and practical solutions.

What are the main payment technologies?

The main technologies include payment links, Pix, QR Code, crypto assets, and much more. Also present are digital wallet, contactless payments and blockchain.

How has technology transformed payment methods?

Technology has made payments faster and safer. It is now easier and safer to buy online. It has also increased payment options and made financial services more accessible.

What are payment links?

Payment links make online sales easier. They allow the seller to send checkout details directly to the customer. This makes purchasing easier and faster.

What are the advantages of Pix?

Pix is fast and always available. It allows transfers at any time and guarantees immediate payment. This has made Pix the preferred method for Brazilians.

How does QR Code payment work?

A QR Code contains all the information about a purchase in one code. Simply scan it with a financial app to complete the transaction. This eliminates the need to type in data.

What are crypto assets?

Crypto assets are digital assets to save money or buy things. They include cryptocurrencies, NFTs and tokens.

What are the advantages of digital wallets?

Digital wallets store key credit card information in an app. This allows for quick, contactless purchases. E-commerce sites and marketplaces are now accepting these wallets as a form of payment.

How do contactless payments work?

Contactless payments use the proximity of the card to read the data. This allows you to make purchases without having to enter a password, making the process faster.

What is blockchain and how does it contribute to financial transactions?

Blockchain is a system that protects information with cryptography. It makes transactions more reliable and secure, supporting financial operations.

What is Embedded Finance?

Embedded Finance enables companies to offer financial services without creating a financial business. This includes digital accounts and lines of credit.

How do biometrics and facial recognition contribute to transaction security?

Biometrics and facial recognition use biological data to authenticate transactions. This adds an extra layer of security to protect transactions.

Written by Redação Contas Digitales Updated on August 15, 2024