Today's developments in payments affect every sector of the economy as companies strive to integrate the newest technology to provide their customers with a seamless, simple experience.

Furthermore, the topic of how payments will seem in connection to the relevant technology will unavoidably come up often when new technology-led consumer experiences are introduced to the market.

In this video, Roy Aston, Chief Operating Officer of Paysafe, discusses setting the foundation for payments in the fields of autonomous cars, augmented reality, and virtual reality.

Paysafe: Electronic payments in the future

For Aston, it's important to keep in mind that "it's easy to put the cart before the horse" when it comes to payments technology.

"Businesses will rush to embrace a brilliant concept that excites consumers, regardless of whether the world is ready," he continues.

Not that long ago, 3D televisions were an essential piece of home equipment. After a few years, the thick-rimmed glasses started to collect dust, and television's newfound two-dimensionality persisted.

Therefore, Aston believes that, unlike 3D televisions, emerging advancements like augmented reality (AR) and autonomous cars are here to stay, even though prudence must be exercised while scaling new tech.

He asserts, "The hype is real." These will significantly affect a number of businesses as well as the lives of consumers. And a key factor in their success is payments.

Consider AR as an example. Back in 2014, the clothing brand Topshop allowed consumers to "see" products before they paid for them in a retail setting by utilizing VR and AR. Amazon, IKEA, and other retail behemoths have since followed suit.

Additionally, linked automobiles currently come with inbuilt wallets, which improves the user experience. Theoretically, they free drivers from getting out of their more complex cars to pay for gas, tolls, and other expenses.

But this is where the horse card puzzle starts for Aston. Because the proper infrastructure must be in place for these trends to reach their full potential. He states, "It's not quite there yet."

Installing the appropriate infrastructure

What are some of the infrastructure problems that require attention, then?

Although many nearby gas stations and charging stations are unable to integrate with the car's digital wallet to enable payment at the pump, Aston notes that "connected cars may come equipped with an embedded wallet."

Similar to how payments for AR and VR have been around for a while, it appears that we have the technology to encourage widespread usage. For people who would wish to avoid crowds, purchasing products online on a day like Black Friday might be quite alluring.

However, payments for AR and VR are not widely used, and gear is still pricey. Just 3% of respondents polled in a recent study reported using AR or VR to make purchases.

Thus, how can these problems be resolved and how simple is it to implement infrastructure changes that affect payments in these sectors?

According to Aston, "embracing payment innovation and collaborating with reliable payment providers to ensure the infrastructure is in place are essential."

Fuel stations and shops are adapting to the evolving demands of their customers. One way they do this is by providing alternative, locally-specific payment options such as eCash or digital wallets. Additionally, they can address personnel shortages by using cashierless point-of-sale (POS) terminals.

"Customer demand is rising as a result of payments in AR and VR. When asked whether they would use augmented reality (AR) to buy products in the next two years, 28% said they would when it became more accessible and they had more knowledge about it.

Furthermore, as any new technology gains popularity, payments services may see a rise in usage as the service itself gains traction.

Aston continues, "Adoption will increase as augmented reality in video games soars." Developers and publishers will use this technology in response to consumer demand for novel and engaging experiences, enabling users to conduct microtransactions without having to take off their headsets.

"All industries will benefit from continuing to embrace payment innovation and collaborating with reputable providers to enable them to do so, as this will foster better customer experiences and establish the groundwork for these incredible technologies to flourish."

Paysafe talked to us earlier this year about how it believes the cryptocurrency industry will change as 2024 draws closer.