Five Digital Tools Changing the Way Money Moves

Investor and businesswoman Barbara Corcoran said, “Finding opportunity is a matter of believing it’s there.” The payments industry has been a space where many people have believed in finding new opportunities for efficiency, simplicity, and growth.

Payments are continually getting faster, more automated, and invisible. Through innovations in cloud technology, APIs, the internet of things, cameras, AI, cultural shifts, and fresh thinking from developer-focused leaders.

ETA and payments analytics and consulting firm TSG collaborate with the payments community to discuss, study, and hone the tools impacting our industry.

Many technologies causing buzz in the market are not new, but their application and viability for payments are being developed or expanded.

Here are a few examples:

1. Scanning the Market for QR Code Use Cases
The use of merchant-presented quick response (QR) codes to access checkout pages and consumer-presented QR codes for automatic payments is expanding internationally. Players like Alipay, Square, and Venmo make QR code adoption easy. QR codes are common in certain parts of the world and popular in restaurant and retail verticals. Though, QR use is expanding to other geographies and verticals like the nonprofit and parking sectors in the U.S. According to a consumer survey conducted by TSG, 44% of U.S. consumers have been offered the ability to use a QR code for payment at a merchant that was not a restaurant or retail store. Venmo even adds a social media element to QR code purchases. In the Venmo feed, users can share that they made a purchase, which would indicate that the payment was made via QR code.

As use continues, the industry may expand security measures to ensure QR codes direct users to the right place for payment. Still, it seems clear that this technology has its place in the industry.

2. Real Applications for Artificial Intelligence in Payments
We are now at a point when gathering and storing vast amounts of transactional and behavioral information on individuals is commonplace. As society continues to digitize, more types of information will be harvested, such as data stored on smartphones and cameras. As more information is gathered, AI’s usefulness strengthens.

A few applications for the payments industry:

• The checkout process and service related questions can be handled by bots more precisely as time goes on.
• In several global regions, McDonald’s uses Mastercard’s Dynamic Yield solution to increase average order value through AI that optimizes personalized food recommendations in digital menus.
• Visa has a network of services called VisaNet + AI, offering solutions such as the ability to closely mirror approval decisions made by issuers during outages.
• AI can decrease onboarding and API integration friction by verifying data automatically and completing risk assessments, cutting down manual review time. Some buy now, pay later companies use algorithms for quick credit checks instead of hard inquiries on credit reports.
• AI can help detect fraud and improve geofence marketing as consumers enter proximity to physical stores.

AI can add efficiency and personalization to the digital payments space.

3. Gateways and Their APIs Pave the Way for Payments
Gateways are critical to modern payments. Leading players own multiple gateways, and more players are taking this technology in-house.

Gateways can remain relevant by continuously enhancing their integration methods, especially API documentation. The industry demands seamless integration, and developers are notoriously impatient; they don’t want to spend a lot of time troubleshooting. Al Novacek, TSG’s Senior Director of Product Operations, explains, “Developer decisions are influenced by the path of least resistance. Assessing the strengths and weaknesses of API sets relative to the market gives an advantage when addressing points of friction and roadblocks.”

Recently, TSG analyzed 120+ payment gateways serving a variety of countries. The survey identified that 66% of gateways analyzed have open developer center pages with full access to their APIs (no credentials required). This share is up from 48% in 2020.

TSG also conducts an annual API ‘Best of Breed’ analysis, awarding top performers. Adyen recently received an award for its API. Adyen stands out in functionality, comprehensive documentation, and user-friendly tools that help developers integrate without requiring extensive technical assistance.

4. Count in Account-to-Account Payments
An account-to-account (A2A) payment generally means moving money directly from one bank account to another, without using the infrastructure that credit and debit cards run on. A2A payments can be used to send or request money. Some brands commonly associated with this method include Zelle, Pix, UPI, iDEAL, Cash App, and PayPal.

Notably, businesses are increasingly leveraging these apps to accept payments. One TSG survey of U.S. small businesses found that ~80% of companies with under $1M in annual sales used peer-to-peer apps to accept money from their customers.

A2A is extensively prevalent in various regions today. Approximately 80% of Brazil’s adult population actively uses the A2A system, Pix. India’s UPI system boasts a user base of 300 million people. The iDEAL system in the Netherlands reportedly serves nearly 100% of Dutch consumers. In 2025, Visa plans to launch an A2A payments solution for the UK market. To also expand the solution into Europe later in the year.

5. Getting Our Hands on Biometrics
Biometrics date back to ancient times, when identifiers like fingerprints and handprints were used as signatures. Unique characteristics like these and others like facial pattern, iris, or voice can authenticate a payment. According to TSG’s Consumer Payments Trends survey commissioned by Discover® Global Network, consumers are becoming more comfortable with biometrics. The study found that 62% of North American and European consumers are open to using biometrics for online payments. Results varied by generation, with around 75% of both Gen Z and Millennials showing a willingness to use biometric-based payments online. For in-store payments, 72% of Millennials reported being open to this technology, the highest of all generation groups.

While the modern use of biometric payments is still in its early phases, it is currently in the market. Examples include Amazon’s palm payment technology available at Whole Foods, and Apple’s Face ID tool for purchasing digital goods.

Stay Current on What’s Next With ETA
Keep engaging with the ETA community to stay current on these innovations and others, such as embedded payments, real-time payments, cryptocurrency, augmented reality, and more.

Check out this link to learn about engaging in new events hosted by ETA that cover key industry areas.