Digital payments is transforming payments in insurance
People around the world are expected to make 726 billion transactions using digital payment technologies by 2020, according to a Capgemini and bank BNP Paribas.
Capgemini predicted tech innovations - all of which are being embraced by insurance - such as as connected homes, contactless bank cards, wearable devices and augmented reality - will drive cashless digital payments in the future.
“Non-cash payments have increased in volume due to the rise in adoption of digital payment services across all market segments,” Christophe Vergne, cards and payment practice leader at Capgemini said, speaking to CNBC.
“Curiously, though the number of transactions continues to rise at a rapid rate, the average USD value per transaction has decreased slightly, as digital establishes itself as a growing rival to cash for low cost purchases.”
At present digital payments, and the use of virtual account numbers (VANs), can cut fraud and save insurers’ money.