Top 7 Emerging Payment Innovations Transforming Global Transactions

Money moves faster today than ever before. Customers may be paying for groceries, booking flights, or sending money overseas, but the way they move funds has changed massively in recent years. 

As new technology alters the way people and businesses handle payments, it’s essential to stay up-to-date with the latest developments and understand their significance. Most companies, around 92%, are rushing to upgrade their payment systems, as the cross-border market is expected to soar to $392 billion. These payment innovations, ranging from digital wallets to government-backed digital money, are behind how transactions work worldwide today.

Here are the seven big payment innovations that are making global payments quicker, more flexible, and easier for all shoppers and sellers.

BNPL: A New-Age Solution for Instant Credit Access

Buy Now, Pay Later (BNPL) is now available at many eCommerce stores. It has become a popular option for shoppers who want to make payments in instalments without using a traditional credit card. Your customers can buy something upfront and pay it off in smaller instalments over time with this payment innovation. It also often comes with no extra cost.

This payment mode is gaining momentum, and the global BNPL services market is likely to grow from $6.51 billion in 2023 to $8.42 billion in 2024, at a 29.3% CAGR. eCommerce websites most commonly use BNPL services like Klarna, Afterpay, or Affirm. 

But what do shoppers and sellers like the most about BNPL? BNPL attracts buyers with its flexibility, and sellers benefit from higher conversion rates and larger cart sizes. 

Customers also appreciate the speed and ease of BNPL. It has a much shorter approval process than banks, and everything takes place right at checkout. This is especially useful for younger consumers who may not yet be eligible for a credit card or those who prefer a more interest-free way to borrow for short periods.

The Growing Influence of Crypto in Mainstream Payments

Businesses and customers are now seeing cryptocurrency as a valid payment mode, which was earlier only an alternative financial system. The number of cryptocurrency owners globally has grown to 562 million in 2024, marking a 34% increase from 2023. 

People around the world are using cryptocurrencies like Bitcoin, Ethereum, and Stablecoins for more than just investment. They’re making real purchases with it, from buying coffee to making online cross-border payments.

Stablecoins, among all cryptocurrencies, are becoming highly popular for global payments because they are less volatile than traditional cryptocurrencies. This means stablecoins are more practical for daily use or business transactions. Many companies are now accepting crypto, which is moving this payment innovation beyond just hype.

Substantial players like PayPal and Visa have already developed ways to spend crypto, making it easier for people to use digital assets just like regular money. A good reason this payment innovation is gaining popularity is the technology behind it. Blockchain technology keeps records safe and transparent, which reduces the delays and costs caused by banks or middlemen.

CBDCs: Government-Backed Digital Money Explained

Central Bank Digital Currencies (CBDCs) are basically digital versions of national currency. Unlike Bitcoin or other private cryptocurrencies, CDBCs are issued and controlled by governments. They are more like digital rupees, dollars, or euros, managed by the same central banks that print physical notes.

The momentum for CBDCs is increasing globally. Countries like China and Nigeria, for example, have already rolled out pilot programmes, and others like India and the UK are testing the waters. Additionally, more than 60 central banks are researching and developing CBDCS, which could transform the international payment industry. 

The top benefits making CBDCs famous and adaptable include:

• This payment innovation makes transactions more secure, lowers costs, and reaches people who don’t have bank accounts.
• They can also help reduce fraud, speed up transactions, and lower printing costs. 
• These are official government-backed currencies, so banks, businesses, and even everyday users are more likely to accept CBDCs once they’re fully operative.

The Evolution of NFC and Mobile Wallet Transactions

Paying for purchases is getting earlier by the day. Paying with cash was replaced by swiping cards, and now even that is changing. Nowadays, contactless payments supported by NFC (Near Field Communication) have made paying as easy as tapping your phone or smartwatch. You can see the impact of this transformation as India’s Unified Payments Interface (UPI) processed 12.20 billion transactions worth ₹18.41 lakh crore in January 2024, a 41.72% hike in transaction value from January 2023. 

Many widely used apps, such as Google Pay, Apple Pay, and PayPal, have further changed the way customers pay in stores. Mobile payments made with Apple Pay, PayPal, or Alipay are considered the fastest-growing mode of payment worldwide. The CAGR of these types of digital wallet transactions online, for example, is predicted to be 15% from 2023 to 2027.  

More than just digital versions of cards, these wallets offer additional layers of security, such as tokenisation and encryption. The checkout process is also quicker, and queues move faster with mobile payments. So, companies are also moving towards this new payment mode, upgrading their systems to accept tap-and-go payments without fuss.

The Biometric Revolution in Seamless Authentication

Passwords can be forgotten, and cards can be lost. But your face or fingerprint is always with you. Biometric payment methods use features such as fingerprints, facial recognition, or voice recognition to confirm a person’s identity before processing a transaction. About 83% of customers worldwide think biometric payments are a safer alternative to traditional passwords or PINS.

Biometric tech is already part of many smartphones and banking apps. It’s now second nature for many people to unlock a phone or approve payment with a glance or a touch. The tech is quick and adds an extra layer of protection without slowing down the process. This type of security reduces fraud and gives users peace of mind. 

As more people shop and bank on their phones, having simple yet strong security is becoming the standard. Around 71% of consumers like to manage and access their bank accounts through mobile apps. Having said that, the biometric payment market, valued at $8.6 billion in 2023, is expected to reach $34.8 billion by 2032, with a compound annual growth rate (CAGR) of 16.84% between 2024 and 2032.

Innovations Making International Payments Faster and Cheaper

It used to take days or sometimes even weeks to send money across borders, and it used to come at a high fee as well. Today, newer systems are helping people and businesses transfer money across countries in minutes and for a fraction of the old costs. Owing to these faster and cheaper transfers, the global cross-border payments are set to increase from nearly USD 150 trillion in 2017 to over USD 300 trillion by 2030.

Platforms like Wise (formerly TransferWise), Revolut, and Payoneer give users simpler ways to send and receive international payments. They use mid-market exchange rates and mostly charge less than traditional banks or services like Western Union.

Besides, blockchain-based transfers are also growing fast. They allow payments to pass from one country to another without the trouble of having a middle layer of banks, which saves time and money. This shift is especially important for freelancers, small businesses, and families sending money abroad. 

The Convenience of P2P Payments in Everyday Transactions

Peer-to-peer (P2P) payments have made it pretty easy for people to split bills, share expenses, or send quick payments to friends and family. Around 84% of customers have used P2P services, and 44% of these buyers utilise them at least once a week. Apps like Venmo, Google Pay, Paytm, and PhonePe are used by many in different regions, as these apps let people transfer money in seconds with only a phone number or email address.

Be it about paying their share of dinner or settling rent with a flatmate, P2P payments are a fast, cashless solution for people. The bonus advantage here is that they’re often free to use and work instantly. This is one big reason that younger users and people who prefer digital payment tools use such P2P payment apps.

Other than personal use, even a few small businesses are accepting split payments for convenience. You can easily avoid card fees and get paid directly with QR codes and app-based transfers. 

How Shiprocket Checkout Enhances Online Payment Conversion

Online shopping continues to grow over time. But one of the biggest reasons people abandon their carts is a complicated checkout process. Shiprocket Checkout is here to fix that with a more simplified and faster payment experience.

What makes us a good choice:

• We offer multiple payment options, including UPI, credit cards, buy now, pay later (BNPL), and wallets, to give shoppers the freedom to choose what suits them best. 
• Shiprocket Checkout also supports one-click repeat purchases, making it easier for returning customers to complete their orders with less effort.
• We help reduce friction and ensure that people can complete their payment quickly on their laptop or mobile. It means fewer drop-offs and better conversion rates for you. 
• Shiprocket Checkout also comes with real-time tracking, helping your customers stay informed after their order is placed.

Conclusion

From BNPL and crypto to P2P apps and biometric security, payment innovations are transforming how you and your customers handle domestic or international payments. You now see quicker, safer, and even more convenient transactions, whether you’re shopping online or offline. 

It’s all the more important to stay up-to-date with these trends as new payment innovations continue to be developed. You must make smarter choices and give your customers multiple options to complete their payment.

If you’re looking for help on this transformative journey, simplified and advanced solutions like Shiprocket Checkout can help you stay ahead of the competition by reducing cart abandonment rates and boosting your sales figures.