From push provisioning to CBDCs to palm-print biometrics, here is a brief overview of the recent payment technology innovations
The digital payments landscape is undergoing significant transformation, with innovative technologies reshaping how consumers and businesses transact.
Real-time payments are being improved via the US Federal Reserve’s FedNow Service, enabling instant money transfers. In H2, central banks have also been continuing to explore the use of Central Bank Digital Currencies to attempt to streamline cross-border transactions and enhance financial inclusion.
In India, enhancements to the Unified Payments Interface (UPI) ecosystem now allow interoperable cash deposits, further integrating physical and digital finance systems. Similarly, Mastercard’s Biometric Payment Passkeys canlink payments to fingerprints for secure and seamless user authentication, offering an alternative to traditional password-based systems.
In the current half of 2024, omnichannel solutions such as Worldline’s One Commerce platform, which integrates digital and in-store payments for a unified customer experience. In-app payment security has also improved with PayU’s Push Provisioning platform, which reduces fraud risks while streamlining transactions.
Elsewhere, Tap-to-Pay (launched in 2022) has been gaining traction in Europe for the Apple iPhone user ecosystem, according to CNN Business. This feature turns the smartphones into payment terminals, eliminating the need for additional hardware. If it continues to gain traction, the service is expected to add flexibility to merchant operations and simplify transactions for users across multiple markets.
More recently, Tencent has introduced Palm Payment, a biometric system that scans palm prints and vein patterns for secure, contactless payments. On 6 November 2024, the firm announced a partnership with Visa to pilot the system in some Singapore banks. This technology reflects the growing role of biometrics in enhancing payment convenience and security, especially in regions like China.
These H2 2024 developments highlight the growing emphasis on convenience, security, and inclusivity in the digital payments ecosystem. Biometric systems, real-time payment infrastructure, and the integration of traditional banking tools into digital frameworks are helping to facilitate frictionless global financial environment.
