3 payments trends to watch in 2021

https://www.mobilepaymentstoday.com/blogs/3-payments-trends-to-watch-in-2021/
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As 2021 rapidly approaches, many of us are hoping for better days after the whirlwind year of 2020. While COVID-19 has certainly had an impact on every industry, certain trends that began in 2019 continued to develop in 2020, and some of them may even blossom fully in 2021.

As 2021 rapidly approaches, many of us are hoping for better days after the whirlwind year of 2020. While COVID-19 has certainly had an impact on every industry, certain trends that began in 2019 continued to develop in 2020, and some of them may even blossom fully in 2021.

Cashless will become a reality

The idea of a cashless society has been on our radar for quite some time, and COVID-19 has only sped it up. As people have started to prefer their own cards or phones to cash, some stores have begun to ditch cash entirely.

I think we can say with some certainty that in 2021, cashless will become highly standard in many businesses and regions, however, it will still have to deal with the elephant in the room: the underbanked.

One reason local governments and advocacy organizations alike have opposed stores going cashless is because they argue it discriminates against the underbanked who cannot so easily access bank accounts.

But that issue too might be less of a problem in 2021 as fintechs step up to the plate.

Fintechs tackle underbanking

Fintechs have already begun the process of taking underbanking head on with multiple apps that directly help the less financially fortunate and that trend will likely intensify in 2021.

With traditional banking institutions, it can be difficult for the poor to afford an account due to fees and lack of tools that attend to their needs. Fintech companies are beginning to address this through no fee accounts, microloans and tools for customers on government assistance.

This market still has a ways to go however as 1.7 billion people worldwide are underbanked, according to the World Bank, and 5.4% million people in the U.S. population remains underbanked, according to the FDIC, so 2021 is the right time for it to take off.

Speaking of taking off, no discussion of payments trends would be complete without mentioning the blockchain.

The blockchain makes it big

It may sound like a broken record to say it, but blockchain really is making massive strides. When both national governments and massive financial institutions begin embracing it, you know it’s headed for big places, and 2021 is only going to continue in that trend.

For one, we will likely see blockchain make a big impact in cross-border payments and settlements as organizations ranging from stock exchanges and banks alike adopt it to deliver faster and cheaper payments.

On another level, blockchain will help democratize payments as users are able to send payments directly to others on a blockchain while avoiding expensive fees. Blockchain technology will also help ensure more secure payments by acting as an immutable database.

Of course, these are only a few ways blockchain will impact 2021. For example, it may possibly deliver far more secure voting methods, and organizations such as AP already used it this year to confirm 2020 election results. On the same level, these are just a few of the payments trends we will see in 2021. For that reason, we will always keep our eyes and ears peeled for the next big thing.

https://www.mobilepaymentstoday.com/blogs/3-payments-trends-to-watch-in-2021/