3 Trends That Will Change How We Make Payments in 2018

The year 2018 is poised to be an exciting time in the payments industry as new trends and technologies emerge.

The previous year actually witnessed some major changes in how payments were made. Consumers were introduced to new transfer methods and the PSD2 push as the demand for safer, smarter, and faster transactions reached critical mass.

It actually feels like 2017 was just laying the foundation for some significant changes in the payments process, and this year is when all the promised developments will finally come to fruition. To that end, here are three trends that could change how payments are made this year:

Improved Security and Enhanced Data Protection

Security is even more critical now that more channels have been opened for consumers to pay bills and receive money. Businesses will be paying more attention to cybersecurity, compliance, and fraud prevention in 2018 as any missteps in this area can seriously undermine their business and relationship with their customers.

Due to the massive data breaches that happened in previous years, it's safe to assume that fraudsters will take advantage of any new personal information they receive about consumers. Because of this, payment tokenization and the rise of "omnichannel tokenization" is expected to become more mainstream this year.

Tokens are unique and their use can be restricted to a particular merchant, device or transaction. This enables merchants to isolate threats and prevent fraud. However, the rise of tokenization would also mean that Token Service Providers will also gain greater importance in payment processes.

Rise in Demand for Chinese Wallets

China is slowly making its presence known in the realm of financial technology. Companies like WeChat have already made serious forays in the West in a bid to court more users. China's social media icon has already rolled out the payment platform WeChat Pay in the UK since last year. It now has plans to put up a headquarters in the country as well. WeChat's parent company, TenCent, has already established an office in the US as it works to expand its service in the country.

The adoption of Chinese wallets and payment systems is one trend that would definitely stand out this year, as more Chinese tourists and businesses are expected to hit the US and the EU.