The year 2020 has brought up unforeseen circumstances to the world. It witnessed disruptive transformations to the world of business creating new trends and thus new opportunities. Visa has recently published its report on financial predictions for the next year based on a deep analysis of the trends set forth during 2020.
The report discusses 7 predictions or trends that will rule business and commerce for the next year. The main points can be laid out as follows: the evolution of credit card benefits, the emergence of integrated commerce, “Buy now, pay later” prevalence, the spread of digital payments, more Tap-to-Phone payment methods, digital payments for more people, and the generation of small business’ responses to detect fraud.
● The first prediction from Visa is about the “evolution of credit card benefits.” This shift in benefits is from large, travel-specific benefits to more day-to-day benefits as COVID-19 continues to constrict travel worldwide.
● The second prediction is one a lot of people can see already and that is the “emergence of integrated commerce.” This means that more digital shopping experiences are expected to be integrated into real life, giving more room for contactless experiences.
● The third prediction is more specific to North America and that is the prevalence of the “Buy now, pay later” policy to allow more flexibility for consumers, again something to freshen up the markets after the COVID-19 slump.
● Visa prediction number 4 is that digital payments are going to be the way to go and that there will be no going back to conventional payment methods, especially with the growing health concerns. Egypt has seen a growth in that aspect as data show that “Limits on PIN-free contactless transactions in Egypt have doubled since the start of the pandemic with the increasing adoption of the tap-to-pay for larger purchases.”
● Prediction 5 is that digitalization will not be limited to cards but to phones as well using simple applications.
● Visa prediction 6 is about the increase of financial inclusion worldwide with the continued rise of FinTech services. Companies such as Fawry offered a new framework for digital wallets and payments that is accessible to a wider Egyptian audience helping expand the FinTech services to smaller businesses and consumers.
● Prediction number 7 refers to the response to the massive increase in Digitalization. Fraudster activities are expected to grow at the same rate which will pose more of a challenge for smaller businesses as big firms have the equipment needed to track fraudulent transactions. Smaller businesses will have to resort to other practices that require authentication to take the necessary precautions.
With the incredible amount of change that the COVID-19 pandemic has brought, 2021 presents a new world by all means. With newer challenges (somewhat disruptive trends) and newer opportunities, such a year has led to drastic measures to pivot which accelerated digitalization in our day to day life. The year 2021 will sure witness another boost in digital integration and the spread of technologies.