5G internet is taking the world by storm. It might not be mainstream right now, but soon it will reach every corner of the world. We are already starting to see the impacts of a faster internet connection. Things are only going to go uphill from here. So, if you are not sure if 5G connectivity is available in your zip code you can Spectrum cell service or whatever ISP you’re subscribed to and find out. It is also going to change businesses and online transactions in the coming years.
Mobile payments have become the default gateway for many people. The reduced costs of connectivity and the added convenience are what made it so popular. Many smartphones and tablets now allow you to send or receive money through one tap. Moreover, more places than ever now accept online payments. Initially, 3G changed how the world accesses information then 4G made it possible to shift to mobile. Now, 5G is possibly going to have a huge impact on banking procedures and payment processing.
How Does 5G Change Payment Process?
The pandemic was an unprecedented time. Even now, the world is struggling to get back on its feet. Quarantine lockdowns made online shopping our only resort. So, even though the world was forcibly pushed into it, e-commerce and FinTech became very popular.
Traditional financial transactions need physical contact or in-hand cash. Now, cash is becoming obsolete in many countries as the world shifts to virtual payment methods.
5G is only going to make this transition a lot faster. We can access more payment options than ever. Customers can have more customized settings and payments are a lot more secure.
What Impacts Can We Expect?
Whether you are a consumer or a business owner, 5G will probably change things for you. So, you should be ready for whatever is coming. Here is how 5G can change payment processing for the better.
#1: Reduced Latency
The term latency means the time it takes for a signal to move from sender to receiver and back again. We can say that every new generation of internet connection is better than the last. So, from 3G to 5G, there has been a considerable decline in latency.
We can expect a reduced speed of transaction and its confirmation because of 5G. Moreover, with completely online and swift transactions, there is a lot less room for mistakes. We can remove the human element from the process to increase efficiency.
As a result, we can expect much better customer satisfaction. Customers won’t have to wait for their money to go through because the process will be much faster. Moreover, we can also expect accurate identity verification and a streamlined process.
#2: Secure Transactions
As all mobile devices will use 5G, we can prioritize the safety of financial data. 5G can vastly improve biometric verification methods. We can focus on more than just OTPs and strong passwords. Advanced security protocols can make it difficult for hackers to manipulate devices. Because with 5G spreads, identity verification will be more accurate. So, stealing someone’s card details would not do financial fraudsters any good. They would need a lot more to bypass any security firewalls.
We could also get rid of spoofing and tracking with better data encryption. 5G transactions will focus more on cloud computing and can better monitor threats. Moreover, network slicing can allow us to take more specific security measures for different segments.
#3: IoT Applications
It is a common prediction that 5G will also increase our use of devices with Internet of Things (IoT). IoT applications primarily rely on a consistent internet connection. So, with improved speed and reduced latency, they can perform much better. We might see better IoT applications in the next couple of years because we will have the right technology for optimum performance. Moreover, we can also expect the use of blockchain systems along with IoT. So, transactions over blockchain could happen in seconds over secure channels.
E-wallets have been around for a while now. But we can expect them to become much more mainstream with 5G support. Most payment cards now have NFC tags that you can read from your smartphones and store the information. You then only have to tap on the POS machines to make any transfer. It can reduce the amount of time it takes for Chip & Pin cards to do the same thing. Digital wallets like Apple Pay and Google Pay are also much common now.