Making predictions in the world of finance and payments in 2016 will be quite a challenge as nothing has been set in stone yet. That being said, various emerging trends in the payment industry can’t be ignored. Bitcoin is gaining more popularity all over the world, as traditional finance struggles to keep up with the growing customer demand.
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There is no denying the payments industry will change a lot over the next few years. Several of those changes may very well start to rear their heads in 2016. Based on a recent community blog on Finextra, several emerging trends in finance will make an appearance throughout 2016 although it remains to be seen how they will be implemented in the end.
One of the trends touched upon comes in the form of “open” payments. It goes without saying that popular financial alternatives, such as Bitcoin and other digital currencies, have created a whole new playing field. Regulators are struggling to keep up with these changes, as others players such as challenger banks have entered the mix as well.
At the same time, these new forms of finance are not as efficient as they could be. It will take decades before banks can be overthrown and replaced by new and innovative payment methods. Some people might see this as a downside although it does give alternative solutions plenty of time to keep building their infrastructure, and attract more users.
Furthermore, there seems to be a growing demand by customers and businesses for real-time payments. Even though card payments are widely accepted these days, it still takes a few days before the merchant receives the money from each transfer. Plus, there are the ever-present transaction fees to take into account as well.
FinTech solutions and popular digital currency Bitcoin are providing real-time payments to consumers and companies all over the world. But do not discount traditional finance in this regard, thanks to services such as Faster Payments. Making all of these services practical and accessible around the world will be one of the main hurdles to overcome, though.
Keeping an open approach to revolutionizing the payment industry will have to take place on both fronts. Only through collaboration between regulators and industry experts can there be a peaceful resolution to let these new payment solutions operate with a regulatory framework that does not stifle future innovation.
What are your thoughts on the future of payments throughout 2016? Which emerging trend are you looking forward to the most? Let us know in the comments below!
Images courtesy of Shutterstock, Faster Payments
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