Search
Recent News

Articles

thefintech.info

Payment Service Providers Must Take The Lead For Payments Innovation To Succeed

Innovation is essential to ensure payments keep pace with consumer demand and to enable merchants to find new ways to engage and serve customers. However, to ensure that innovative new payment methods are introduced and their benefits are realized by both consumers and businesses, payment decision-makers are reluctant to take the plunge and adopt new technologies. No need. Payment Service Providers (PSPs), on the other hand, are ultimately responsible for educating their customers and making the right decisions that benefit their business.

Non-traditional payment methods offer many advantages in terms of potential cost savings, security and transaction speed. In fact, according to Nuapay data, 36% of merchants see open banking as having more opportunities than any other payment method in the next three years. Additionally, with the pandemic and the increasing importance of a new generation of digitally savvy consumers, the appetite for new payment technologies has never been higher. In Nuapay’s recent Merchant Perceptions Survey, more than half (56%) of the payment professionals surveyed agreed that their customers are more open to new technologies than they were two years ago.

This gives merchants an opportunity to introduce more efficient, cheaper and secure payment methods. Taken together, the benefits offered to mean that these new methods offer a competitive advantage. With many merchants looking to adopt and convert, you should consider user experience and reduce friction during checkout. Aligning your payment strategy to be “consumer-centric” allows you to focus on the differentiated experience you can offer your customers during the checkout process. This can add value or cause underlying friction and pain.

However, before any real progress can be made, in-house payment professionals must be comfortable with new technologies and ready to implement them. This is where the PSP needs to move the needle.

Personal preferences can affect the absorption of new technology

The same survey found that while a third (34%) of payment professionals are excited to try new payment methods themselves to stay ahead of the competition, nearly half (45%) Admit to being cautious or risk-averse, and 21% claim more. Be a creature of habit.

In fact, more than half (51%) of all payment professionals said they would not introduce a new payment method into their organization until it was integrated into a payment gateway.

Payments professionals who felt “excited” by new payment technologies in their personal lives were more likely to say they would adopt new payment methods directly with payment providers. They were much more likely (60%) to refuse to accept new payment methods until they were pre-integrated.

Job titles have also influenced the willingness of payment professionals to integrate new payment technologies. CFOs and finance executives, who are among the most likely to feel “excited” in their personal lives, are even more likely to say they won’t adopt new payment methods until they are integrated with payment gateways. (48% and 55%, respectively). ). Payment managers were the group most likely to initiate new payment methods directly with payment providers (54%).

This data clearly shows that payment processors should consider the personal preferences of their merchants and adjust their product and service recommendations accordingly.

The role of payment service providers in driving innovation

It’s easy to hold the payment decision-maker accountable. However, as trusted professionals, payment service providers have a greater obligation to educate their customers and encourage them to make the right decisions. This includes helping us stay up to date with the latest technology and its benefits. In fact, more than a quarter of his surveyed merchants (26%) say they rely on their payment processors to keep up with the latest developments in payment technology.

Consumers are eager to try new payment methods, and even risk-averse industry professionals understand the untapped potential of technologies like open banking. Momentum is building, but we need to continue to reach out to the industry.

The data above clearly underscores the importance of aligning products and services with those in an organization responsible for integrating new technologies and payment methods. This means viewing these individuals as consumers and businessmen with their own personal tastes and interests.

If payment providers are unable to convince merchants of the merits of their products, they will not be passed on to consumers, resulting in the loss of abundant business opportunities and benefits.

Read More
thefintech.info

The Recession Reset

With two consecutive quarters of negative growth, we are by definition in a recession. The next question is, will it be light or heavy? While signs are currently pointing to a mild recession and a “light landing,” which is the ideal outcome, the advertising industry has taken a hit. Regardless of what we’re going through, the “recession reset” is going well and ushering in the next generation of digital advertising.

“Reset the recession” allows advertisers to reset their business models to better ensure success in the midst of an economic downturn. Today’s digital advertising landscape is not the same as it was during the Great Recession of 2008. At that time, many major brands were in the dark without any ad spending for over six months and the whole US advertising market fell 13%. Today, businesses can pivot – an axis made possible thanks to web3.

For decades, online advertising has been controlled by tech giants, who operate their businesses in a black box, forcing advertisers to measure performance by numbers. provide them – no verification of numbers, no third-party checks, no guarantee that ads were served, and no confirmation that real people saw them. The model is neither reliable nor durable, but companies are so used to inflated numbers that they continue to ignore the billions of dollars lost each year. However, that is starting to change as more advertisers seek data-driven results that will help them achieve long-term success as the economy recovers. In fact, 74% of marketers say that if they had access to more transparent data, they would increase programmatic ad spend by at least 11% and in some cases by 50% or more.

Web3 gives back control to advertisers. It leverages transparency and decentralization to create a safe and secure ecosystem for media investments, ensuring honest and human-verified results for every advertising campaign. It also screens and avoids any potential bots that have used the ads and ensure the ads reach real people, unlike the current model where almost 75% of media spend is lost to fraud. All transactions made on the blockchain are public and immutable, meaning advertisers have immediate access to their ad performance, and all impressions are accurate and complete. no wasted media spending. No more “bots” and inflated numbers – this level of transparency helps advertisers avoid ineffective campaigns and wasted media money.

The “recession reboot” also comes at a time when many companies are shifting their focus and budgets to the CTV space. CTV ad spending grew 39% last year, while traditional TV ad spending fell 23% and total ad spend on other media fell 5%. CTV’s targeting makes it easy for advertisers to deliver tailored and personalized content to viewers based on demographics, interests, behavioral data, and location. CTV ad impressions also surpassed mobile ad impressions for the first time last year, signaling that this shift to CTV ads will only continue to gain momentum. This trend encourages advertisers to “reset” their business model and prioritize platforms that allow them to better communicate with their customers.

The “recession reset” is bringing an unprecedented level of decentralization, transparency and accountability to the advertising industry – something the industry has never experienced before. It’s time to reset your business model to ensure success through this recession and beyond.

Read More
thefintech.info

How C2B Payment Developments Could Drive B2B International Growth

In terms of innovation, consumer-to-business (C2B) and consumer-to-consumer (C2C) payment technologies are currently leading the way against business-to-business (B2B) alternatives. For example, PayPal payments can be made in real-time, while business-to-business payments can take days or even weeks. While protracted payments mostly occur when steps are taken to ensure the safety of all parties, many merchants awaiting payment may find this exacerbated. Customers also have to wait for payments from companies, such as refunds, because their accounting departments can only send payments periodically, such as once a month.

Around three in five (58%) businesses in the UK owe money due to late payments from other businesses. Additionally, 93% of businesses regularly have late payments, and although the average expected lead time is 27 days, most payments take an average of 34 days or more. This becomes a concern for the average trader, who writes off about 1.5% of their receivables, and these losses can be enough to put businesses on the brink of bankruptcy or bankruptcy.

In addition to supply chain issues, labor issues, the continuing COVID-19 pandemic and escalating inflation, late payments and low margins have all contributed to sluggish growth. in many developed economies. If businesses have that extra 1.5% to reinvest or stay afloat – instead of waiting months – they can put themselves and the economy at large on the path to recovery.

Deploying C2B technology in B2B payments

As the payments industry splits into two completely different camps, a lot of innovation is needed to move from C2B payments to the B2B space. For example, with C2B payment technology, accounting or payments professionals facing late B2B payments can order products from e-commerce sites on terms that work for them. Additionally, C2B payment methods, including Buy Now Post Pay (BNPL) and virtual cards, have recently been made available to customers, and real-time payments have become the norm in C2B and C2C payments. for over a decade.

Meanwhile, B2B payments still need more growth. In 2021, the B2B payments market is worth $49 trillion and is expected to exceed $54 trillion this year. While this single-digit average growth sounds promising, it still reflects a “slow recovery in business activity following the impact of the COVID-19 pandemic.”

That’s why we need to consider the importance of these technologies for driving change and how they can work in a B2B environment:

Overcoming cash flow obstacles

Despite the special importance of cash flow to a business, money in and out systems are not designed to optimize it, especially in a card environment. Buyers can often keep funds for a few days before releasing them – sometimes longer if weekends and holidays are a factor. Of course, the acquirer has its own reasons for not disbursing funds immediately, but this can still cause cash flow problems if companies have to wait days or business weeks for payments to be made. suppliers (they may also have to wait days or weeks to pay their suppliers, etc.).

Therefore, new services are essential to allow us to instantly access incoming funds without waiting for payment and make payments instantly. Specifically, a solution was needed to provide businesses with immediate access to customer funds that could be used to make outbound vendor payments, all in real-time on one platform only.

The appearance of virtual cards

Virtual card transactions are expected to grow globally, from $1.9 trillion in 2021 to $6.8 trillion in 2026. This will be driven by an urgent need for businesses to optimize their transaction processes. Currently, too much time and money are spent on the complex processes described above, which require modernization.

Virtual cards are the solution to many of the challenges associated with B2B payments. If a business needs to pay a supplier for goods, they can go through the standard checkout process (which can take months) or create a real-time virtual credit card that includes the amount they need to pay maths. This will allow them to pay their bills instantly. Instead of requiring a line of credit to bridge the gap between incoming and outgoing payments, there is a technology that can give businesses instant access to incoming funds, which can be immediately disbursed for supplier outbound payments without having to wait for funds to be settled – reducing cash flow constraints.

These payments are much more secure than alternatives; even if a single-use virtual card is compromised, it will contain only the amounts necessary for the intended use and they can be recovered through chargeback procedures. Virtual cards are also much more transparent with centralized controls that can inform payment decisions and prevent losses.

Easily switch from C2B to B2B

Although virtual cards are offered by many vendors, it is only recently that a provider has been able to connect two traditionally separate payment functions and reduce the risk of the payment process while unlocking the New benefits through a single integration, with contracts for the global market. The combination of these features simplifies payments for B2B businesses, giving them immediate access to funds that are about to be disbursed to them. Instant access to incoming funds allows companies to instantly pay suppliers and transact in real-time.

Read More
thefintech.info

Where will integrated finance go in 2023? 

As we all know, integrated finance refers to the integration of financial services into non-financial products and services, such as retail websites, mobile apps, and even physical products. In other words, it is making financial services more accessible and convenient for consumers by integrating them with the products and services they already use.

Over the past few years, we have seen a significant increase in the adoption of integrated finance and this trend is expected to continue in the coming years. In this article, we will explore some of the key trends and developments in the world of integrated finance and try to predict where it will head in 2023.

1. Neobank

One of the biggest trends in the world of integrated finance is the rise of new banks and digital single banks. Neobanks are financial institutions that operate entirely online, offering a wide range of financial services such as checking and savings accounts, loans and investment products. They have no physical branches and rely on digital channels to attract customers and deliver services.

Digital-only banks have seen significant growth in recent years, and this trend is expected to continue in the coming years. According to a report by Boston Consulting Group, the number of new banks worldwide is expected to triple by 2023, reaching more than 300 million customers.

One of the key advantages of neobanks is their ability to provide a smoother and more convenient banking experience for consumers. They often have user-friendly mobile apps that allow customers to access a wide range of financial services from their smartphones, and they also offer attractive rates and fees.

2. Fintech x Bank Partnership

Another trend in the world of integrated finance is the rise of fintech companies that provide financial services through partnerships with traditional financial institutions. These companies are using technology to streamline and automate financial processes, making it easier for consumers to access financial services.

Fintech companies are increasingly partnering with banks and other financial institutions to provide a variety of financial services, including payment processing, lending, and wealth management. These partnerships allow traditional financial institutions to harness the technology and innovation of fintech companies, and help fintech companies reach a broader customer base.

3. E-commerce

One area of ​​integrated finance that is expected to see significant growth in the coming years is the use of financial services in e-commerce. As more and more people turn to online shopping, retailers are looking for ways to make the process easier and more convenient for their customers.

One way for retailers to achieve this is to integrate financial services into their online stores. For example, some retailers offer financing options for customers who want to make a large purchase but don’t have the cash upfront. Other retailers are integrating payment processing into their websites, allowing customers to pay with their preferred payment method.

4. Sharing Economy

Another trend in the world of integrated finance is the use of financial services in the sharing economy. The sharing economy refers to the growing trend of people using technology to share resources, such as cars, homes, and even tools and equipment.

Financial services are becoming increasingly important in the sharing economy as they allow people to easily and securely pay for the resources they use. For example, ride-sharing platforms like Uber and Lyft use payment processing to allow riders to pay for their ride, and ride-sharing platforms like Airbnb use the process. payment to facilitate rent payment.

In conclusion, the world of integrated finance is constantly evolving and we can expect significant growth and innovation in the coming years. Neobanks and digital-only banks are expected to continue to grow rapidly, and fintech companies are expected to play an increasingly important role in the financial sector. The use of financial services in e-commerce and the sharing economy is also expected to continue to grow, making them more accessible to everyone.

Read More
thefintech.info

Fintech predictions and possibilities for 2023 

It has been an eventful year. Fintech is far from reaching the peak of 2021, and while 2022 is largely about resetting the funding environment, 2023 will be a year of recalibration for fintech companies.

The good news is that large and midsize companies are more concerned than ever about the impact on their bottom line. As revenue growth slowed, cost savings and efficiency became essential. Large companies are more likely to reduce internal innovation efforts and unnecessary technology investments for the business. This opens the door for fintech that can bring real improvements to the bottom line by eliminating manual processes and saving their customers money.

Let’s first look at the areas that can be the most challenging:
lenders, neo banks and fintech serving small and medium businesses.

online lenders

Credit will be hit hard. Lenders must navigate three main winds in today’s market:

  1. Increase the rate of overdue debt and write off the debt.
  2. The cost of capital is higher on the debt they lend.
  3. Reduced customer demand due to higher interest rates.

Rising chargeback rates and default customer defaults will be difficult to manage for new fintechs that are less than five years old. These startups don’t have fully designed models to predict which customers are most likely to default.

Managing risk during a recession can be difficult, and lenders feel it most acutely.

Neobanks

Neobanks has transformed the customer experience of traditional banks by providing better digital products at a lower cost. While the big players, such as Chime, which have already raised large amounts of capital, should be fine, expect to see consolidation among the smaller new banks. The reality is that many new banks have customers with small average deposit balances and deposits that are essential to long-term banking business models. Neobanks will also be victims of layoffs – if one of their customers is laid off, banks will see their direct deposit flow drop.

Fintech serving small and medium businesses

Small businesses are more likely to close during a recession. In turn, fintechs serving SMBs rather than large and medium-sized enterprises are more likely to lose SMB customers. That’s why you’ve seen companies like Brex move away from SMEs.

Read More
thefintech.info

How the Internet of Things Will Transform the World of Payments

What is IoT? A digital network of Internet-connected “things” that continuously share data and generate actions. It will have and is already beginning to have, a disruptive impact on the world around us through smart home technology.

These “things” are everyday household items such as kitchen appliances such as refrigerators and ovens, car dashboards, smart speakers, washing machines and dryers. These devices connect the physical world to the digital world by collecting data from the real world around us to create actions on our behalf, such as making digital payments. Unlike QR code payments, this does not require human intervention. This is the beauty of the Internet of Things (IoT). Your device will do the talking.

How is the wonderful world of IoT possible?

By 2021, half of the world’s population will own a smartphone. By 2030, 5 billion people are expected to use smartphones. It is precisely this ubiquity of connected devices and internet connectivity that makes the IoT possible. To see how this is impacting the world of payments, just look at data from ACI Worldwide and Global Data that 52.7% of the world’s population uses mobile wallets. Coupled with the move to the cloud and machine learning, organizations can scale with natural language processing and gain insights more easily. Besides being smart and affordable, IoT can also appeal to people.

IoT devices can leverage new machine learning technologies to meet consumer-specific needs. A world where you can pay bills from the dashboard of your car, a world where your fridge can track finished groceries and add them to your weekly order, or automatically make eCommerce purchases with your Google Home or Amazon Alexa smart speaker. Imagine a world where you can Machine learning enables devices to learn human needs and act accordingly.

Secure the future of smart homes

IoT has enormous economic potential, expected to generate $13 trillion in revenue over the next few years, but that opportunity will only be unlocked by consumer confidence. Consumers are skeptical about sharing data, putting microphones in their homes, and expanding their digital footprints. Not only do consumers need to trust the makers of their devices, but financial institutions and merchants also need to have the right tools in place to verify their customers’ identities and prevent payment fraud. This means we have the right technologies to monitor risky transactions, such as tokenization and machine learning.

Optimal use of hyper-connectivity

The increased demand for IoT devices will not only benefit consumers but will also drive increased demand for goods and services from merchants, enabling more payments to be processed through networks of banks and financial institutions. increase. Ordering pizza from your smart speaker at home is just the beginning. Hyper-personalization and automation are key to creating positive customer experiences and driving frictionless spending. Queues, cash-in, and entering card data are a thing of the past.

Read More
1 2 … 46

Videos

Featured Video Play Icon

Allianz Financial Results 2022

Allianz Group is one of the world’s leading insurers and asset managers. We offer our customers in more than 70 countries a wide range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance.

Read More
Featured Video Play Icon

Transforming your digital business with Weavr’s embedded finance solutions

Let us explain in this short video why you don’t need to become a fintech to embed financial services into your digital product. After all, you’re a business, not a bank. Weavr is the fastest and most cost-efficient solution for any business wishing to embed finance. Our Financial Plug-ins are fully-formed solutions that bring together everything you need to offer financial services within your product.

 

Read More
1 2 … 50

Whitepapers

1 2 3

Infographics