5 Must-Know Digital Payment Trends for 2022

Jan 18, 2022 by Brandon Jones

Digital payment trends are continually shifting and growing to meet market needs and demands. What we predicted for the pre-pandemic market is now different from the needs of a world still dealing with COVID-19.

It’s crucial to stay on top of whatever is in demand in a market that is always changing. You will continually need to keep an eye on the horizon and prepare for what is coming next.

Unfortunately, the ever-changing market also makes it impossible to know what will happen over the coming year. But, it is possible to look back over the past year and see some of the growing trends and habits that are on track to making big waves in 2022.

As we move on from 2021, here are five digital payment trends you should keep an eye out for in 2022.

1. Smart Payments

Smart payments are helping to streamline the accounts receivable process in the B2B space. They carry essential information along with the payment. This helps the accounting team easily track where the money is coming from and which invoice it is going to.

Smart payment is a growing trend taking over the B2B space—to the point where it is a standard aspect of payment in some industries. It is spiking in popularity because it makes the entire payment process faster, more efficient, more accurate, and significantly less labor-intensive.

One way smart payments are starting to increase in popularity is with online payment portals. These portals allow businesses to identify which account and invoice they are paying with a few simple clicks. Even with this additional information being processed digitally, smart payments have more security protocols in place to ensure that no information is put at risk—making smart payments safer than other digital options.

2. Decentralization

There is a growing movement to transition digital payments away from the current banks and payment processes that have had a monopoly over the industry.

In the past, the only alternative to paper checks was an automated clearing house (ACH) transfer. ACH controlled digital payments because they were the only possible option. But, there is a growing market of new competition with real-time payments (RTP). These alternatives address some of the core issues of digital payments that most companies and consumers just assumed were standard, like transaction fees.

3. Direct Digital Transfer with Real-Time Payment Options

P2P applications, like Venmo and Paypal, are common practice for most consumers. They make it easy for anyone to quickly digitally transfer funds from one account to the next with minimal or no fees. That same technology is transitioning to the P2B and B2B space. This makes it so customers and businesses can automatically transfer money to pay for products or invoices.

This instantaneous transfer changes processing times from weeks to hours. It improves businesses’ cash flow by virtually removing any serious delays in payment processing.

4. More Flexible Payment Options

While many companies have a preferred payment method that involves a credit or debit account, flexible payment methods are starting to enter the market again. Flexible payment methods help increase your customer base because it helps them reduce the risk of bad debt.

With payment options like autopay, payment plans, and recurring payments, customers and clients gain more control over their finances while still making necessary purchases.

5. Early-Payment Discounts

It’s becoming more popular to offer discounts on payments because suppliers want to be paid faster to improve their cash flow. For example, if a company makes a payment in 10 days instead of 30 or 60 days, they receive a 5% discount. This benefits both the supplier and the client because it enables the supplier to improve their cash flow, and the client can make big purchases at a consistent discount.