Technology has changed our lives almost unrecognisably. And payment methods are just one of the areas where we’ve seen significant change.

Every decade it feels like there’s a new innovation making payment simpler and easier, with more security. However, with the pandemic the rate of change has only increased. But how have payment habits evolved over the last decade?

Changes with the pandemic

Paysafe’s Lost in Transaction: Consumer payment trends 2021 report, reveals the extent to which the pandemic has changed payment habits. Less than one in five people told Paysafe that their payment habits had stayed the same during the pandemic.

Instead, the vast majority of people revealed that things had changed for them. Almost half of the responses said they are now using a digital wallet for online transactions, and one in 10 were making cryptocurrency transfers.

Young people were especially adventurous with new tech: around three quarters of 18-24 responses said they had tried a new form of payment during the pandemic. And this all seems to be partially led by the pandemic, with a third of consumers saying they began to use technology as they were now making fewer in person payments.

How has technology changed traditional payments

There are so many ways to pay now. How we receive and transfer money is just one example of this: traditionally, a check would be used for transfers – but now, money is sent via online banking with various apps to make the process smoother.

Digital shopping is no different. E-Commerce stores allow you to pay through facilitators such as PayPal, while you can also use pre-paid cards that make for simpler accessibility and budgeting.

Payments have also become borderless. It’s simpler than ever to make transactions abroad. You can withdraw money from most ATMs and most establishments across the world will accept your credit card.

AI: the future of payments

AI is set to change the world of payments in the future. Fraud is one the main concerns with payments, and AI could be set to crack down the problem.

Human error is one of the main causes of fraud, but AI can be taught to recognise the patterns that surround dubious transactions and flag them up before neutralising the threat. With AI growing ever more sophisticated, it’s hoped that digital payment systems will grow increasing fraud resistant in the future.

The world of payments can seem more and more advanced every year. It’s one of the main areas where tech is revolutionising our habits. With the pandemic hastening the adoption of new techniques and practices, it’s time for you to get accustomed with the future of payments.