High Demand for Digital Payments, 1.4 Billion People May Use Biometrics Payments by 2025

The heavy selling in the top cryptocurrencies (dubbed as 'crypto winter') has affected many companies in the field. Celsius halted withdrawals for almost 3 weeks, Three Arrows Capital (3AC) and Voyager Digital Holdings both filed for bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the courts. Bankruptcy can only occur with a court filing. Since bankruptcy is a legal state, once the petition is filed with the appropriate court, local and state laws vary greatly. Different Kinds of Bankruptcy In the US, these legalities are referred to as Chapters 7 and 11, 12, and 13. Chapter 7 is a liquidation procedure, where all assets are sold, and the court oversees the distribution of the money to creditors based on their standing. Both businesses and individuals can file for chapter 7. Chapter 11 is a reorganization process where businesses are allowed to freeze their debts and continue to operate. In contrast, a method and procedure are negotiated through the courts to satisfy the obligations of the company. Chapter 13 is called a wage earner plan and helps people attempt to restructure their debts to repay their debts. This can include some debt forgiveness by creditors or reduced interest rates or balances. Not all private persons are eligible for Chapter 13, high amounts of debt don't qualify, and the person must file Chapter 11 or 7. Most individuals choose Chapter 13 over Chapter 11 or Chapter 7 because it aids them in avoiding foreclosure on their residence. The filing of bankruptcy is considered a last resort when businesses and persons have not been able to negotiate terms directly with their creditors. Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the courts. Bankruptcy can only occur with a court filing. Since bankruptcy is a legal state, once the petition is filed with the appropriate court, local and state laws vary greatly. Different Kinds of Bankruptcy In the US, these legalities are referred to as Chapters 7 and 11, 12, and 13. Chapter 7 is a liquidation procedure, where all assets are sold, and the court oversees the distribution of the money to creditors based on their standing. Both businesses and individuals can file for chapter 7. Chapter 11 is a reorganization process where businesses are allowed to freeze their debts and continue to operate. In contrast, a method and procedure are negotiated through the courts to satisfy the obligations of the company. Chapter 13 is called a wage earner plan and helps people attempt to restructure their debts to repay their debts. This can include some debt forgiveness by creditors or reduced interest rates or balances. Not all private persons are eligible for Chapter 13, high amounts of debt don't qualify, and the person must file Chapter 11 or 7. Most individuals choose Chapter 13 over Chapter 11 or Chapter 7 because it aids them in avoiding foreclosure on their residence. The filing of bankruptcy is considered a last resort when businesses and persons have not been able to negotiate terms directly with their creditors. Read this Term, job cuts and more.

With a potentially new covid-10 vaccine-resistant strain, how is the payments industry reacting to these changes?

Visa recently published the annual Visa Consumer Payment Attitudes Study with some interesting findings. The study focused on the Asian payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term sector.

Due to covid-19, digital payments have accelerated. According to the study, Southeast Asia is expected to reach $1 trillion by 2030. Consumers said that they will use cashless payments more often (77% according to the survey).

The use of Buy Now Pay Later (BNPL) solutions is gaining more interest (63%). According to Stripe, "businesses that accept buy now, pay later services on Stripe have seen a 27% incremental uplift in sales volume."

A different survey found that millennial and Gen Z use BNPL more often than other generations. 15% of millennials and 5.7% of Gen Z used BNPL in-store compared to 3% of older generations.

For online shopping, 26% of millennials and 11% of Gen Z (approx.) used BNPL compared to only 7.5% of older generations.

Digital Payments in Asia

According to the study, 93% of consumers are using cashless payments. Singapore and Malaysia are leading the Asian countries in cashless payments.

source: visa

BNPL is most common in Thailand with nearly 41% of consumers using it more than twice in 2021. Consumers were asked what is their concern with BNPL: 51% responded with high-interest rates and 41% were concerned with their ability to pay in full.

Some interest was also seen in biometric payments. In May 2022, MasterCard announced it is piloting payments using facial recognition or palm of the hand recognition.

The biometric program is already live in some of St Marche grocery stores in Sao Paulo, Brazil. A study by Jupiter Research shows that approximately 1.4 billion people will use biometrics for payments by 2025.

According to Jupiter Research, "the value of biometrically authenticated remote mobile payments will reach $1.2 trillion globally by 2027; rising from $332 billion in 2022."

When asked about biometrics for payments, Visa's study shows there is some interest in payments via fingerprints but voice recognition and retina scans have less interest.

source: visa

While the majority of the study's participants found that biometrics payments are more convenient, many are concerned with securing the data. Consumers are more accustomed to fingerprint scans due to smartphones.

Ajay Bhalla, Mastercard’s president of cyber and intelligence said: “All the research that we’ve done has told us that consumers love biometrics. They want to make a payment at a store to be as convenient as opening their phone."

The interest in cryptocurrencies remains elevated, which is led by Thailand.

Payments Trends in 2022

We are at the very beginning of the digital era. The traditional ticketing system that is used for flights, public transport, events etc. will be replaced with non-fungible tokens (NFTs).

The world is heading towards cashless payments. Despite the crypto winter, businesses can still accept stablecoins that are backed by physical assets (as opposed to algorithmic stablecoins that have some risks as seen in Terra and USDD).

Since covid-19, Asian consumers are more inclined to order online than to physically shop at the mall.

Digital identity platforms such as NDID, which is used in Thailand, will be in high demand. Securing digital identities may create a market for security firms to step in.