NFC payments are made using radio frequencies, which are effectively sound waves, and allow customers to make payments by holding their phone within a few millimeters of the reader.
Fremont, CA: Demand for digital banking services, which was already on the rise before the COVID-19 pandemic hit last year, was boosted even more in 2020, and it is likely to have gained years of territory in what has been a remarkable year. Customers who were not previously accustomed to operating online had to become more comfortable with virtual alternatives as a result of stay-at-home orders and social distance needs, and a hesitation to spend cash saw cashless solutions become more in demand. Here are three reasons why mobile banking will become popular in 2021:
The popularity of Cryptocurrency Wallets
Cryptocurrency wallets are at the center of the payment industry's evolution, thanks to the expanding number of digital banking apps that support cryptocurrencies. They provide the solid security of blockchain-based technology and reduce expenses by eliminating the middleman in payment operations.
Furthermore, blockchain allows for tokenization, which is a form of security. The provider stores the user's personal data in a digital account and sends payment information to vendors as a token that only contains enough information to link the transaction to the cryptocurrencies in the wallet.
COVID-19 Accelerate Use of Contactless Payments
Contactless, near-field communication (NFC)-based wallet payments are quickly becoming the most popular payment method. The advantages of this type of payment have been highlighted by COVID-19, which emphasizes the convenience, quickness, and personal safety of making proximity mobile payments.
NFC payments are made using radio frequencies, which are effectively sound waves, and allow customers to make payments by holding their phone within a few millimeters of the reader. In addition, because they transport encrypted data and the consumer does not have to give their card information, they are faster and more secure than PIN-based technology.
5G Transform Digital Banking
The roll-out of 5G in 2021 will precipitate a step-change in what digital banking solutions are capable of in the years ahead, with mobile phones front and center in determining the uptake of digital banking. In addition, complex operations will be completed considerably more quickly due to the speed of 5G networks, reducing turnaround times in KYC verification and other regulatory and administrative components of onboarding clients.
Mobile banking and payment apps will also benefit from 5G, with fewer downtime and technological issues and faster and easier payment solutions that appeal to a broader audience.
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