The future of payments, 4 key changes that you should know

The future of payments is coming in fast and there’s no better time than now to prepare for it.

The question is:
What are they key differences in the financial industry affecting payment processing and how can they influence your business?

Well, in this article you’re going to find about the 4 most important changes in the fintech sector and get a chance to make the most of them.

1. Contactless payments are king

The saying cash is king has become outdated as contactless payments are becoming more commonplace. While this technology has been around for a while, now it’s being adopted across the world. Euromonitor claims that the use of cash in Germany will drop 30% by 2025 and FIS reports that 61% of people globally prefer paying with contactless.

Some have expressed concerns about the safety of this type of transaction. However, their fears are quickly being put to rest by biometric authentication, such as the one provided by Google or Apple Pay.

Contactless payments are here to stay, so it’s important to make sure that your business is reaping the benefits of this tech.

2. User experience is becoming a priority

The Baymard Institute has calculated data from 44 statistics and found that the average cart abandonment rate is 69.8%!

Filing paperwork, completing loan forms and unfriendly payment experiences are pushing customers to abandon their purchases altogether. Therefore, companies are investing in simplifying payment methods. Businesses like Bolt and Uber essentially cut the payment out of the whole process. Simply add your card, take a ride and the money is automatically debited from your bank account.

The point is, having a simple and fast payment experience can make or break your sale, so more technology is popping up to ensure that no customers get lost at check-out.

3. Understanding customers through their purchases

Everyone knows the importance of data. Knowing your customer can help find new product opportunities, provide a great shopping experience, improve retention and so on. Companies are investing not only in data gathering solutions but in technology that allows them to make the most use of that info.

New ways of collecting and using data on customer purchases will help to ensure a seamless payment experience for buyers, and provide businesses with more opportunities for upselling, cross-selling and making personalized offers.

4. The evolution of cross-country payments

People are becoming used to instant payments at a touch of a button. Yet, for the longest time, international payments have failed to provide the same experience. That is about to change. New entrants are rolling out technology that would allow money transfers between countries at a rapid speed.

Recently Swift’s GPI instant payment service sent a payment between Australia and the UK in just 36 seconds. The P27 initiative in Scandinavia is integrating the Nordic countries with different currencies into a single payment system. PayNow and PromptPay are allowing instant transactions between users in Singapore and Thailand.

All in all, improving technology and synchronized global standards for transmitting data, such as those provided by ISO 20022, are making cross-country payments faster and easier. Soon, many companies will benefit from payment innovations in an ever more interconnected world.

A new era for Fintech

The financial sector has been dominated by huge banks for the longest time. However, they have failed to quickly address the pain points of businesses and other stakeholders in the industry. Now, lots of smaller, faster and more flexible digital companies are set to provide solutions that banks couldn’t. 

In this age of flexible digital innovators, the whole financial market is evolving fast. Many companies will set themselves up to benefit from increasing integration and changing technology.

If you’re not certain how to get the most of this fintech wave contact us and we’ll help you take the step into the future of payments.