Nowadays, with the growing popularity of electronic payments worldwide, people can use various electronic payment methods. Contactless payments, digital wallets like Apple Pay or Google Pay, QR codes, etc., have become common payment means for many. According to Kleber Bacilli, CEO and founder of the international IT company Sensedia, in 2026, the value of digital payments will reach $ 95 billion. There is a clear trend in the market that more flexible payment options increase consumer confidence and loyalty, which has a decisive impact on sales growth.
„Financial services become more and more digitalised every day, so consumers are constantly introduced to faster and more convenient payment methods. In Europe, the implementation of the Second Payment Services Directive (PSD2) has made a significant contribution to the secure sharing of data between financial institutions, enabling customers to access third-party services for more convenient and secure banking services“, comments Mr Bacilli about the event that caused the biggest breakthrough last year.
According to the CEO, the success of today’s leading companies, such as Apple, Venmo, and Square, is a consequence of the high use of smartphones, increased e-commerce sales, and rapid development of the Internet worldwide: „Even traditional banks follow this trend. A survey conducted by the Bank for International Settlements found that 80% of the central banks surveyed participate in digital currency initiatives for both business and personal use in one form or another. With a steady decrease of cash in the market, the key challenge for central banks in 2022 will still be to remain competitive, which will depend on their ability to effectively integrate the digital currency (CBDC) into the digital payments ecosystem.“
Financial payments of the future: towards increased individuality
According to the CEO of Sensedia, the choice of digital payment methods for consumers is undoubtedly broad. What direction will electronic payments develop in 2022?
1. We will buy right away and pay later
One of the fastest-growing payment methods is the so-called buy now, pay later (BNPL) method. Estimates show that about $ 100 billion worth of goods were purchased in this way in the world last year. Fintech companies that offer this service introduce it as a flexible and convenient alternative to credit cards – you can pay for goods in a certain period of time without any interest.
„Businesses that want to gain an advantage in 2022 will have to offer consumers the most convenient payment solutions. This payment concept is evolving around the world, along with growing e-commerce sales volumes and consumer expectations. Such a shopping model is offered by fintech company Klarna and other similar financial companies. It is rapidly gaining popularity in the Baltics as well. In the long run, this model is going to replace credit cards and become a standard in the e-commerce ecosystem,“ emphasizes the CEO of Sensedia.
2. The era of biometric data
„Consumers are increasingly becoming the primary authenticator of payments. Biometric data — a fingerprint or facial image — is used to protect mobile wallets, such as Apple Pay. The technology currently being developed aims to enable customers to pay for travel or in-store merchandise simply by going through a terminal or exiting the store, using solutions that link purchases to a wallet,“ says Bacili.
According to him, as this trend grows, it is likely that in 2022, the limit for contactless payments will also increase. Even back in 2020, 80% of payments across Europe have been contactless, and today, volumes are only growing.
3. EU digital wallet for payments
Last summer, the European Commission announced that the citizens of the EU would be able to keep all their identity documents in a European digital wallet, which they could access via their smartphone or online. The wallet should be used for the secure storage of important documents, passwords, and payment information.
„The wallet will allow users to connect to government websites, sign up for services, and pay bills with a single ID. Access to the wallet will be provided through the use of biometric data – a fingerprint or retinal scan,“ the CEO of Sensedia points out the upcoming innovation in the EU.
4. Every company will become a fintech company
We will see the acceleration of the trend towards greater involvement of financial services in non-financial companies in 2022. For example, WhatsApp is already using payment platform technology to pay through its program. It is likely, that many companies will follow suit e. g. Uber, or even the simplest pizza ordering platform, where customers will be able to leave tips for pizza delivery.
5. More individuality
According to the CEO of Sensedia – Mr Kleber Bacilli – with the growing importance of fintech in people's daily lives, and the rapid development of BNPL and cryptocurrencies, the regulation of these services assumably will be tightened. The head of Sensedia also emphasizes that financial services and products are not universal: „What works for one person will not work for another, so we will very soon see a growing volume of special banking or fintech services designed for specific target segments. Today, neo-banks are actively doing this, offering services to climate activists or former inmates,“ accentuates K. Bacilli.