New payment methods

1. The rise of electronic wallets and PSPs (Payment Service Providers)

If we look at the rapid evolution of the sector, it's important to understand the difference between e-wallet and PSP : a PSP is a platform that can be integrated into a website to collect online payments. A electronic wallet is an alternative to a bank account, with a digital balance. It can be used with players who have integrated it into their payment solutions suite.

On the PSP side, let's take the example of Stripe and Paypal (the latter is both a PSP and an e-wallet). These giants dominate with Paypal holds 60% of the global market and Stripe 16%. .

The e-wallets include Apple Pay, Google Wallet and Samsung Pay . Just two years after its launch in 2014, Apple Pay had 67 million users, and by 2020, that number had exploded to more than 500 millions . The Digital Markets Act adopted by the European Union should reduce the monopoly of these platforms, with the development of the market among traditional banks.

These innovations have changed the game thanks to their safety, speed and ease of use . You'll see that these services meet changing consumer expectations.

2. Cryptocurrencies: a booming reality

Visit cryptocurrencies such as Bitcoin, Ethereum and other altcoins are making their mark on the French financial landscape. Paypal has taken this on board, enabling payments to be made in cryptocurrencies, thus broadening transaction options.

However, challenges remain, not least the volatility of their value, transaction costs and regulation. Witness the disappointment surrounding the Lightning Network, which despite its promise of low-cost transactions, has not revolutionized the sector.

3. Instant payments: the answer to immediacy

The introduction of SCT Inst (SEPA Credit Transfer Instant) in Europe promised to be a revolution, but has been limited success, with around 1 billion euros of transactions per year A drop in the bucket compared with conventional transactions.

However, the EU's determination to impose free transaction fees on instant transfers should accelerate the development of this means of payment.

Visit paiements peer to peer (between private individuals) are gaining ground, with services like Lydia or Pumpkin in France responding to consumers' growing demand for real-time transactions.

4. Biometrics: a step into the future

Imagine a world where your transactions are as simple as a glance or a fingerprint. JP Morgan projects that this means of payment will account for $6 billion in transactions per year with 3 billion users by 2026.

5. NFC: connected objects as new payment terminals

Fox montres, bracelets and other accessories are now payment terminals thanks to NFC technology . Even automaker Ford is exploring innovative ideas, such as allowing its autonomous vehicles to return to the dealership in the event of non-payment.

6. Chatbots: accompanied payment

Imagine a service where your customer pays directly into the conversation . Such a scenario is already possible if you connect your chatbot with Paypal or Stripe .

This makes it possible to offer a sales and advice experience that is closer to that of a physical store, with a seamless transition to payment . Knowing the strong cart abandonment rate in e-commerce (more than two-thirds), this integration is promising.

Especially as advances in artificial intelligence enable your chatbots to offer a more human and flexible experience!

7. Payment links and QR codes

PSPs such as Paypal, neo-banks such as Revolut, P2P e-wallets such as Lydia and partners in financial solutions such as Hero are now offering payment links and QR codes making B2B and private transactions easier.

The challenges of new payment methods

The ethics and environmental impact of payment methods

La energy consumption of cryptocurrencies is a matter of concern. The Bitcoin network consumes as much electricity as Norway A reality that underlines the need for more ecological means of payment.

The security challenges of new payment methods

57% of professionals surveyed identify safety as their number one priority . P2P platforms such as Zelle in the United States are facing 255 million in fraudulent payments Even Apple Pay is not immune to security problems.

Regulation, innovation and the impact on the fintech landscape

The Banque de France and the European Union are against decentralized finance and crypto-assets deemed too risky for savers. Striking a balance between consumer protection and encouraging innovation remains a major challenge.

Whatever the authorities think, the revolution of the new payment methods is on the move. From biometrics to cryptocurrencies, every innovation represents an opportunity. For Hero, the future of payment means begins with an exceptional customer experience and infallible risk and cash management.

With Hero, you can offer your customers the option of paying online, with payment terms to suit their needs (payment in instalments, 30, 60 or 90 days, etc.). For your part, you receive payment immediately, so there's no risk of non-payment, and your cash flow is easy to manage. And what about your accounting? It's automatically updated with Hero!

Make an appointment with one of our advisors today.