The world has rapidly embraced digitization and has undergone several advancements to accelerate transformation. Online payment, also known as digital payment, is one of the prime influencers in the business world that has shaped the present and future of eCommerce monetary transactions. Several large- and small-scale businesses have leveraged digital payments to expand trade and make a mark in the global market.

According to Statista, the total transaction amount for online payments is expected to touch USD 8.56tn in 2022. This blog will explain the top online payment trends for 2022.

8 Trends to Watch in Online Payments

1. Unified Payments Interface (UPI)

What Does Unified Payments Interface (UPI) Do?

The Unified Payments Interface (UPI) merges several banking features, seamless fund routing, and merchant payments into one mobile application (for any bank participating in UPI).  In spite of India’s high digital payments rate compared to its global peers, UPI has been key to India’s efforts to enhance financial inclusion through the use of online payments.

A credit card link to UPI is projected to increase credit card penetration into digital payments. The Reserve Bank of India (RBI) digital payments index (DPI) has risen to 349.30 in March 2022, up from 304.06 in September 2021, reflecting the adoption of online payments in the country.

In July 2022, the unified payments interface (UPI) clocked over 6 billion transactions, which is the highest milestone accomplished by India’s flagship digital payments platform since its establishment in 2016.

According to National Corporation of India (NPCI) reported as estimated 6.28 billion rupees worth of transactions were processed through UPI, and the total transaction value reached Rupees 10.62 trillion. This shows that UPI adoption has been accelerating rapidly.

2. Neo Banking

With the advancement of innovative technologies like robotics, artificial intelligence, and machine learning, Neo Banking is making online payments more convenient and enjoyable for its customers. There is resistance to change among traditional players, putting them at odds with the digital transformation.

The rise of neobanking is due to various factors that include millennial adoption; sporadic incomes and earnings from micro, small, and medium enterprises (MSMEs); emerging technologies, and increasing consumerism. Investors, venture capitalists, and corporates have been attracted to these banks because of their high adoption rates and successful business models.

3. Biometric Authentication

Biometric Authentication is an innovative way to ensure a secure payment process. It is a highly-secure technology and helps in developing customer trust and loyalty. In this method, the security code is defined by any person’s biological specifics, such as fingerprint scanning, heartbeat analysis, iris recognition, facial recognition, etc.

After matching the security code, the user will be allowed to make any monetary transaction. With a many cases of security code breaches, payment frauds, and identity thefts, biometric authentication is ideal for establishing reliable and secured online payments.

4. Buy Now, Pay Later (BNPL)

BNPL is already the most popular payment method in the eCommerce industry. It is a simple process that allows the customers to pay free installments just as an alternative to the credit card payment methods, making the transaction easily affordable. Buy Now, Pay Later (BNPL) is one of the significant online payment trends that allows customers to decide their financial transactions during checkout. Its popularity is credited to the fact that, after the payment of the initial amount, customers can pay the balance towards the purchase in a predetermined number of installments, often at zero percent interest.

BNPL technologies have emerged and were most used during the pandemic. According to the latest Juniper Research Report, the BNPL payment method is expected to see a surge of 274% between 2021 till 2026.

5. Digital Wallets

With the augmented use of smartphones these years, online payments are expected to surge and become a standard mode of monetary transactions. Digital Wallets or Mobile Wallets are one of the significant facets of digital payment. Mobile Wallets are digital storages that store different payment information in the apps. As a result, customers can avoid providing payment information repeatedly. They can quickly purchase any commodity using information already stored in the wallet.

By leveraging Near Field Communication (NFC) technology, mobile wallets are the latest online payment trend, allowing nearby devices to interact easily and share information. With increased online payments during the pandemic, NFC has become a popular term in the digital payment domain. The pandemic led customers to contactless payment apps, influencing the adaptation of a wide range of mobile wallets across global markets.

Mobile Wallets have attracted attention because it help to avoid the card “swipe” fees charged by major credit card companies. According to the Allied Market Research Report, the mobile wallet market size is growing at a CAGR of 28.2% from 2020 to 2027.

6. Blockchain Technology

Blockchain technology is often used in connection to cryptocurrencies. It delivers massive value on a fast international ledger. Block technology helps to make global online transfers from individual to individual. It allows highly secure transactions, helps to restrict unethical practices, and quickly complies with audit and regulatory requisites.

Blockchain technology is fast, interoperable, reasonable, open, and efficient. As a result, blockchain technology is an efficient online payment trends and optimum solution for digital payments and is expected to rule the fintech market in 2022.

7. Card Tokenization

It is another popular online payment trend. In this method, the actual card is tokenized, which means the original card details are replaced with a unique alternate code. This alternate code is known as a “token,” and it is specific to an individual’s payment details and only to one commercial at a single time. Since card details are protected, there is minimal scope for any breaches or frauds. A tokenized card transaction is safer and more secure for online transactions.

8. Artificial Intelligence and Machine Learning

Security is the prime aspect when it comes to online payment transactions. Several financial institutions are leveraging AI/ML technology to control any digital malpractices efficiently. There are numerous transactions every day, and monitor each effectively, and spontaneously. Ai and ML-enabled applications are highly effective. According to the specialists, using AI-based platforms helps reduce payment fraud because it interpret trend-based insights and scale-up as per requirements.

For example, when you receive a query message from your bank asking text from your bank asking about whether a particular transaction has been made by you or not, it alarms you and the bank to prevent a significant mishap. These texts are sent by the machine learning applications installed by your bank to avoid online fraud. Bank of America already has a chatbot that informs about balance notifications, customer services, and tips on saving money for customers.

In a Nutshell

With the number of modern trends mentioned above, online payment is the future of financial or monetary transactions worldwide. From highly secured blockchain technology, biometric authentication, and card tokenization to interest-free installment payments at checkout, 2022 will witness the innovation of the online payment trends and fintech industry to align with the preferences of e-commerce customers across robust global markets.

By widening the payment opportunities for the customers in the front end, supported by modern technologies to ensure seamless and secured transactions from the backstage, merchants have the scope to reap revenues while delivering customer satisfaction at every phase of the financial transaction.


The author writes about fintech, banking, and future of SAAS services. He works as an SEO analyst at Easebuzz, so if you're looking for an account that tracks India's fintech scene, you should check out his Easebuzz blog.