In today’s world it’s becoming more and more easy to pay without using cash. Credit and debit cards are accepted worldwide, but even that is no longer the most innovative way to pay. Many businesses are beginning to adopt mobile payments and transfer and Brazil is definitely keeping up with the trend. Mobile payments and digital wallets are the new hype and at PayLivre we make sure to not fall behind.
Even before the pandemic made it essential, digitalization was already making its appearance in the Latin American market. It was a slow and steady process and unfortunately not all major stakeholders realized that digitalization was indeed the future. Mobile payments, online banks and such were adopted by clients that wanted to try something new or those that were looking for a way to pay less fees. This wasn’t really something that everyone was going to switch to. And besides, traditional banks and physical currency was something that everyone knew and trusted, despite certain inconveniences.
However, the pandemic gave digitalization a major push forward. Decades’ worth of innovations are occuring at the blink of an eye and major market players have realized that digitalization is no longer just a fancy concept, but instead it shall become the new norm and those that refuse to adopt it will suffer.
Financial digitalization occurs in a variety of ways. Although it was initially difficult to get people to trust virtual banking systems or payment services, the transition is made possible by allowing people to experience firsthand the solutions and benefits that paying online offers.
The digitalization of the financial market is made possible by expanding the services that are offered by pre-existing apps and adding more to the already developed tools. People are able to keep using what they are used to but have access to new services every time. If people are able to see the efficiency and trustworthiness of digital services, they are more likely to switch. The convenience of being able to pay or bank or invest from the comfort of one’s couch is tempting.
The pandemic obviously has had a positive influence on digitalization. People were no longer able to go to banks or access services in-person. Everyone was stuck at home and that was where digitalization appeared to be the perfect solution. It was a risk-free, convenient and intuitive way to get things done. Once people realized just how simple and fast it was, there was no going back.
Top Payment Trends
New payment trends have made an appearance in the world and Brazil and due to their convenience and wide range of possibilities, they are here to stay.
- Mobile payments: Mobile payments make it possible for clients to pay with their phones. This could include tapping to pay at a supermarket, using mobile banking to pay a bill or even online shopping. Brazilians love their smartphones and according to statistics, the country currently has 1 smartphone per inhabitant, which means that there are around 220 million activated phones in Brazil. In addition, nearly 75% of Brazilians admit to using their smartphone when engaging in online shopping. Mobile payments aren’t going anywhere in Brazil, so it is in businesses’ best interests to start accepting this payment method.
- E-Wallets: Yet another global payment trend. E-wallets allow users to keep their information hidden when engaging in transactions online. Platforms like PayPal, PagSeguro and Apple Pay allow clients to complete transactions instantly without sharing any of their financial information with the merchant. E-wallets are commonly used for online purchases, but they can also be incorporated in physical stores.
- Instant Payments: Instant payments are a way to transfer funds between accounts and the receiver gets the money immediately in this type of transaction. In Brazil, newly launched PIX is bound to replace the more traditional TED and DOC transfers.
- Biometrics: Biometrics are a secure way to protect your financial data on your phone. If you register your retina or fingerprint or face on your phone and use it to activate your mobile payment method, it will help make sure that no one else has access to your e-wallet or card. Biometrics are already a common security measure at banks and it is planned that it will soon be possible to use biometrics to pay at establishments. This will make payments more practical and you won’t have to worry about forgetting your card or pin again.
- Facial Recognition: This is a form of biometrics that is already present in 14 countries and is being implemented in Brazil. The idea is for facial recognition to become an accepted payment method. Payment by facial recognition is currently in its testing stages in Brazil and the objective is to reduce the amount of fraud.
- Cryptocurrencies: Cryptocurrencies have been becoming more and more popular among investors. These digital coins offer a very secure way to access them and use them to pay. Cryptocurrencies are safer than using cash or a credit card to perform a transaction and they are bound to become more widely accepted in the future.
Paylivre’s Promise to you
As you can see, digitalization is here to stay. More and more clients are in search of platforms that provide instant banking and payment services. People need something easy to use, and something they can trust. Here at Paylivre we are staying on top of the various innovations in the financial market and our commitment to you is to provide you the safest and most convenient digital payment platform.