Innovations in banking: What will fintech payments look like in 2025?
From Apple Pay taking over the world to scanning your eyeball to pay for your weekly Woolie’s shop, payments in the year 2025 could look pretty different to how they do today.
According to recent research from Mastercard, Australians largely agree that in just five years time, cash will become the least used payment method. This may seem far-fetched, after all five years isn’t that far in the future, but in fact it’s a trend that is already happening. Ask yourself, when was the last time you visited an ATM or paid for anything with notes, coins or cents?
Statistics released by the Australian Prudential Regulation Authority last year, show that ATMS have been in steady decline all across Australia since 2017. So perhaps a future where digital wallets are commonplace and biometric and invisible payments are the norm isn’t so out of reach. And out of all the digital wallets on offer today, Apple Pay is on track to be one of the most popular in five years time.
Apple Pay set to make up 10% of all global transactions by 2025
With invisible payments on the rise, and apps like Uber, Ola and Foodora becoming more and more popular, it’s no wonder that Apple is set to become even bigger by 2025.
Currently Apple Pay transactions account for around 5% of global card payments, but recent research from Bernstein analysts shows that this number could double in five short years. Bernstein’s data shows that 10% of global card payments could be made using Apple Pay by the year 2025.
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Apple Pay works pretty much in the same way as other digital wallets such as Samsung Pay and Google Pay. The only thing that probably sets it apart from the rest is the popularity of Apple products in general.
According to research published on the statistics and analysis website Statista, the digital giant has sold a whopping 1.5 billion iPhones globally since its initial release in 2007.
Add to that the fact that Apple Pay comes readily installed on the iPhone and you’re looking at millions of people, worldwide with easy access to Apple’s digital wallet.
Digital payments lead to increase in biometric security
Besides sounding like something out of a 90s Sci-Fi series, biometric security is a security system that uses your physical characteristics to verify your identity, this could be anything from a fingerprint to an eyeball scan.
Mastercard’s research found that a majority of Australians view biometric payments as both fast and convenient, with four in five agreeing that biometric payments take away the risk that someone might be able to see them enter their PIN or password.
The research also revealed that biometric payments are set to become more common by the year 2025. Fingerprint authentication came out as possibly the most popular biometric payment method, with 56% of Aussies likely to be swiping their finger to pay for something in just five years time, closely followed by facial recognition, retinol or iris scan and voice recognition.
The results of Mastercard’s research ties in nicely with Mozo’s own research on the rise of neobanks. Mozo’s neobanks’ report showed that one in four Australians are thinking about or have already switched to an app-based bank. The report revealed that more than half of Aussies now bank online or with a smartphone. So, for these fintech savvy Aussies the leap to a digital wallet or even biometric payments probably wouldn’t be all that big.
It would seem that whether you’re willing to fight it or not, the future of finance is digital and clunky coins may soon be a thing of the past, only to be glimpsed in history books.
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Or if your neobanks curiosity has been piqued, why not head over to our neobanks comparison page to see what digital banks are available in Australia right now.