Payment predictions for 2022: Part 1

December 28, 2021

While the world may be opening up a little bit more after the pandemic, businesses have seen a shift in their payment methods; digitalization is growing and it is not likely to stop anytime soon.

In a list of growing banking and payment trends predictions for 2022 shared by Jane Longinova, CEO of Radar Payments, we can see where financial institutions should focus their efforts in 2022 and onwards. According to The Fintech Times, the predictions are based on the demands that have been made by banks and payment services across the globe.

The list includes Pay-Per-Use Software (SaaS) Payments, IoT’s, SoftPOS, Alternative payments, Buy Now, Pay Later, Fraud Solutions, CBDC, Super Apps and Embedded Finance.

SaaS Payments

SaaS payments, which entails paying a small subscription fee on per usage basis, are a growing trend in today’s market, and apparently the one to watch out for the most, as it is expected a great percentage of business clients will demand it within the next 2 years.

Cloud-first is becoming the go-to model for banking and payment organizations that put agility, cost efficiency and reduced time to market on their top priority list.

IoT and the Connected Economy

According to the Fintech Times, Forrester predicts that 2022 will be the “year of convergence” between edge, IoT and networking tech.

The Internet of Things, or IoT’s, are unexpectedly on the radar of investors – in fact, investment is expected to increase by 40%. This is on trend with sustainability.

with IoT being used for energy efficiency, smart mobility and resource management in areas such as environmental monitoring, resource management and supply chain processes, which are all on top of investors’ agenda. This will open up new horizons for financial institutions that wish to serve their business clients differently. Connected –first organizations will be a key differentiator for banks and fintech's in 2022 that wish to create new ecosystems.

SoftPOS

Unsurprisingly, Tap-to-Phone technology, or SoftPOS, is gaining more traction, this is due in part to the interest small and medium-sized enterprises (SMEs) have in digitalization, specially for tools like mobile apps. 

The digital payment world is increasingly offering more and more alternative payment methods to keep on-brand with hygiene and social distancing enforcing methods. Merchants should keep up with the different trends that are popping up globally, as this rise in cost-efficient forms of payments are not likely to stop evolving anytime soon. 

Next week we will discuss more alternative payment methods; keep tuned so that you can be ahead of the curb with AltoGlobal.

Want to learn more? Check out The Fintech Times’ full write-up here.

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