The world is quickly changing, and the money transfer industry is not exempt from that. However, many people are not sure what to expect. Here is a quick look at how domestic wire transfers may change in the future.
More P2P Transfers
Cash may be long gone in the near future. The start of the pandemic in 2020 made many people realize that they do not need to rely on cash payments because online payment methods through their banks, First Payment Provider , Venmo, etc. were easy and efficient. Even before the pandemic, there was a surge in mobile and online payments in 2018 and 2019, so it is likely to be even higher in 2020 and 2021. More and more merchants are preferring online payments over cash, so more customer are switching to digital payment methods, slowly pushing us towards a cashless society.
Since more people are using online money transfers to send and receive money, it is likely that we will experience better services than the ones we currently have. Most international money transfers require 3-7 business days to process, and alternative payment platforms may only take 1-3 business days. However, we may have instant international money transfer in the future thanks to the likely rise in demand of online transfers. Blockchains may be a huge part of why our transfers will be quicker, but we will talk more about that later.
We are making huge advancements in technology, so it is only obvious that our security systems will improve, especially for financial purposes. More financial institutions and payment platforms will invest more into their security, finding better software and safety measures to protect their client’s information along with their personal assets as a business. Clients are already experiencing the new forms of security. For instance, people are already using voice recognition, facial recognition, biometrics, etc., to log in to their accounts and access their information, making it more difficult for hackers to get their information and money.
The blockchain may be a huge part of the future of transfers, especially since more businesses and banks are getting interested in blockchains. Plus, new cryptocurrencies are popping up quite frequently, so it comes as no surprise that blockchain will become normal in the next ten years, or even sooner. A lot of start-ups are accepting crypto as payment if you want to invest in their business ventures. Many common brands and luxury brands also accept crypto payments, such as Tesla.
Digital Currencies Will Be More Accepted
Since more people are opting for online payment methods, it is very likely that more kinds of digital currencies will become accepted for most businesses. We may not reach a cashless society until 30-40 years from now since some people prefer cash and in some cases it may be more useful. However, online payments are beginning to surge in popularity, making it more likely for merchants to accept more kinds of digital currencies.
The money transfer industry is making a lot of changes, many of which are positive. These changes will slowly shift as we develop as a society.