FUTURE OF PAYMENT INNOVATIONS

Blockchain

Known by many as the technology underpinning the bitcoin digital currency, blockchain is emerging as a way for companies to instantly verify transactions, without relying on a central authority — something that’s essential as companies face new challenges in data management and security. Numerous banks, retailers and others are experimenting with blockchain so they can digitally track the ownership of assets — a move that could speed up transactions, cut costs and lower the risk of fraud.

The Internet of Things (IoT)

Visa is working with companies around the world to ensure that Internet-connected devices, appliances or wearables can offer secure, fast and easy payment solutions. After all, IoT is already taking over our homes, cars, classrooms, workplaces, kitchens — the list goes on. To help illustrate the scale and speed of IoT growth, market research company International Data Corporation (IDC) predicts there will be 200 billion connected devices in use by 2020, ranging from mobile devices and home appliances to supply chains and healthcare records. That equals about 26 smart objects for every human on earth. As new devices come online, billions of potential new entry points for hackers are also created — meaning companies will need to find new ways to guarantee the security and seamlessness of payments. Visa is continuously working to create best-in-class payment and data security technologies to the growing world of connected devices.

Faster payments

The sharing economy is a prime example of how faster payment options help make businesses more efficient and successful. When a person steps out of a ride share having reached a destination, he or she doesn’t need to worry about swiping a card or doling out cash, and the driver has no need to worry about printing receipts or counting out change. Does it get any easier? Total revenues from shared economy services are expected to grow from $6.4 billion in 2015 to 20.4 billion in 2020 (Sharing Economy, Juniper Research, April 2016), and Visa Direct, a real-time payments network for business and person-to-person (P2P) payments is already helping partners enable customers to send and receive money faster (within 30 minutes) to and from more than 200 million Visa debit cards in the United States as well as non-Visa branded debit cards.

Virtual reality (VR)

Imagine seeing how you look in a new outfit, without having to try it on, or experiencing a pro football game from the point of view of the quarterback. These are just a few examples of the promise of virtual reality — and we’re closer than ever to its widespread use. Today, there is more and more emphasis placed on using VR technologies and tools for experiences that go beyond recreation and gaming. Newer iterations show VR popping up in industries like politics, healthcare and commerce

Biometrics

As technology advances, consumers are going to rely on more than just a simple password to protect their assets, accounts and the rest of their digital presence. Enter biometrics, which promises a more nuanced view of security with an eye scan or a well-placed hand. Research on biometric tech is amping up, and with it comes the ability to make the authentication process more robust, convenient and secure for consumers.