Top 8 trends of digital payments in 2020


In the article, we have collected the main trends of 2020 in the field of digital payments


Digital payment methods have become widespread over the last four to five years. Every year, the proportion of cash deniers is increasing. Various factors influence this: the rise of new convenient and secure solutions on the market, the development of innovative technologies, even emergencies such as quarantine measures and the Kovid-19 epidemic. In the article we collected the main trends of 2020 in the field of digital payments.

Biometric authentication

This trend appeared in previous years and by 2020 has become even more relevant. Biometrics user identification methods include fingerprint scanning, face recognition, iris, heart rate analysis, and vein pattern analysis.

With the increase in identity theft and fraud, biometric identities can be a reliable and secure alternative to digital payment. According to industry research, by 2021, more than 18 billion operations will be conducted annually using biometric detection methods. Biometric authentication is an accurate and highly secure method, as it contains unique features of an individual. Use of such tools can help build a loyal and long-term relationship with the client.

Read: Top e-commerce trends in 2020

Generation Z: a ​​tech-savvy viewer

Representatives of Generation Z were born between 1999 and 2012. That is, those who are 7 to 20 years old – this generation is Z, which is also the generation of digital world.

According to studies, in just 2020, the number of representatives of generation Z will exceed the total number of millennials (born between 1981 and 1996). This means that the majority of the world’s population will be technologically savvy and influenced by technology. This generation is already dependent on automated, faster and more efficient technologies and services. As a result, the demand for digital payment systems will increase rapidly this year and beyond.


From card to code

The rapid transition of consumers to electronic commerce requires more effective solutions to ensure payment security. One of these is tokens – it is the replacement of real data on a plastic card with special digital codes that can be stored on personal devices and any other digital storage.

The use of such methods sometimes increases the security of digital payments. And furthermore, it allows you to slowly refuse the plastic card, making one click purchases possible.

Mobile POS-Terminals Increasing Demand

Mobile POS-Terminal is a revolutionary technology, as it no longer allows merchants to be tied to shops and stationary cash registers. Instead, they can attend various ceremonies, exhibitions, festivities and other places where they will accept cashless payments from customers.

In addition, mobile POS terminals make shops more flexible and innovative, replacing traditional cash registers with employees with small and convenient devices.

Photo: Bank Pivadeni

The data confirm that mobile POS-terminals will be one of the major trends in digital payments. According to Business Insider, about 20.7 million of these devices will be operational by 2021. For comparison, in 2014 they numbered 3.2 million.

Payment through smart speakers

Home assistants or smart speakers allow users to give voice commands and receive voice feedback. Voice commands can be related to various things, such as receiving weather information, traffic information, and users can place an order in an online store or call Uber Taxi.

Many technology giants have invested in the production of smart speakers. In 2014, Amazon first introduced its smart column. Google Home and Apple joined in 2016 and 2017 respectively. With the expansion of functionality, smart speakers became more and more popular. According to Statista, 28% of the people they interviewed used smart speakers to transfer money. In fact, there are few such users yet, as many are concerned about the safety of transfers made using smart speakers. But according to Business Insider forecasts, their number will increase to 77.9 million by 2022 (from 18.4 million in 2017).

Key operations that users perform using smart speakers. Data: Statista

Use of artificial intelligence and machine learning to improve security

Security is the most important aspect for digital payments. People always prefer to use a payment method that has a high degree of security. That is why payment technologies cannot develop without the development of first-class protection.

As an example, banks daily receive a large amount of information about customers and their payment transactions. To detect potential threats in seconds, banks use machine learning technology. For example, you receive a message from the bank that clarifies if you have actually performed a certain operation. This warning message helps the bank prevent fraudulent transactions.

Contactless payment

Convenient and secure contactless payments are gaining popularity in 2020, specifically to combat the spread of coronovirus infection. They can be withdrawn to a certain extent without entering only a PIN code, so this payment method is ideal for everyday purchases.

Many leading companies, such as Samsung, Apple, and Google, have their own mobile wallets to make contactless payments. And all that a user needs, just to download the application, add a card (or several) and pay quickly and easily at retail stores, as well as transportation.

According to the forecast, by 2027, about 36% of all payments will be made using contactless cards based on NFC technology.

Mobile purse dominance

According to a RetailDrive report, in 2019, around 201 billion customers used mobile wallets. By the end of 2020, this number will, of course, increase. Using a mobile wallet, you can send money to other users, receive money from them, pay utility bills, buy tickets, get cashback, and more.

In the coming years, more and more companies will create their own mobile wallets. As a result, users will not only be able to choose between Apple Pay, Samsung Pay and Google Pay.

Digital payment is not only our future, but also the present. We are seeing that, under the influence of various trends, people gradually refuse cash and switch to digital payments. But only time will tell when this will happen.

Read: How the epidemic has changed banks: the digital revolution and new trends


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