Many people envision the future of money as a digital paradise. A world where financial transactions are entirely non-analogue – a cashless society. Platform business models have grown in power as economies have become more digitized, but whether payment platforms are still viable in today’s digital world remains an open question.
Payment platforms have been described as the process of connecting to multiple parties and technologies. Simply put, such technology enables consumers to save their payment information on a secure platform forquick and easy checkout across participating brands.
Within the last few years, the pandemic has disrupted every aspect of how societies function, forcing governments, businesses and regular citizens to adapt to a “new normal” way of conducting daily activities. As such, rapid digital transformation has already taken place across geographies in areas such as e-government, remittances, and e-commerce.
It is undeniable that in the span of a few decades, payment platforms have evolved from being rare to standard practice. As a result of omnipresent internet access and the widespread use of mobile phones, the current digital transformation has brought massive opportunities for payment platforms. In order to level the playing field and attract the ‘unbanked’, digital payment platforms must be able to establish trust with their customers, including handling concerns regarding data privacy.
The rise in online payment platforms spurs questions over cybersecurity and privacy.
The use of many payment methods on e-commerce sites has prompted questions about cybersecurity to become even more critical for businesses. Using these platforms provides data mining opportunities, which threatens users’ privacy rights and can increase the chances of cyber attacks. It can also allow service providers to misuse data since they are not always transparent about how they monetize it.
On the flip side, digital banking is the digitization of every level of banking, from front-to-back.
Many businesses today are turning to digital banking solutions that not only support seamless integration of centralized and decentralized financial services but also to provide more secure, cost-effective, transparent, and lawful financial services for both consumers and enterprises around the globe.
Digital banking had been gaining momentum to become consumers’ primary banking method well before the pandemic. Research have shown that the global market for Digital Banking was estimated at US$12.1 Billion in the year 2020, and is projected to reach a revised size of US$30.1 Billion by 2026.
After all, the movement towards digital banking is now our reality. Underpinning trust in money while supporting private sector innovation, digital banks provide a solid foundation for payment systems. By using AI-powered intelligence and open APIs, digital banks are repositioning themselves as part of broad end-to-end consumer interactions within the payment platform ecosystems, rather than as a discrete, stand-alone activity.
In the past few years, digital banking has spurred changes in both money and payments, resulting in increasingly efficient and convenient payment platforms. Furthermore, such ecosystems allow consumers to connect to them through a variety of digital access points and interact seamlessly with other network participants.
Many businesses and consumers are already taking advantage of this technology, and other incumbent players are realizing the need to adopt more digital services and offerings to stay competitive in the industry—or risk getting left behind.
In understanding this powerful shift in today’s society, INFOPRO is here to assist financial institutions (FI) worldwide in fully realizing their digital transformation. INFOPRO brings the concept of an AI-driven digital banking platform that is more robust and secure and enables banks to seize their opportunity to optimize customer experience seamlessly across all touchpoints and smart devices for Retail Banking, Corporate Banking, and many more.
To find out how INFOPRO can enhance your digitalization journey and to support you in growing your business, reach out to INFOPRO today at marketing@infopro.com.my.