Thursday, January 14th, 2021
Technology has been evolving rapidly in the world of payments. So much so that businesses are paying close attention to the driving forces behind the changes to ensure they can optimize their software and customer experiences to stay ahead of the curve.
It’s hard to really pinpoint just one reason why payments modernization is accelerating, payments experts have a couple of strong factors in mind. Domenico Scaffidi, head of market infrastructures for FinTech software maker Volante Technologies, for example, points to better cloud technology, proven cost efficiencies and COVID-related lifestyle changes as partial explanations. In his words, the modernization process is simply growing up.
“It is interesting to observe that cloud technology and digital transformation are now mature enough so there is [no longer any] lack of trust in security or bandwidth on the bank side,” Scaffidi remarked.
Experts agree that one of the main drivers of modernization has been consumers’ desires to maintain social distance during the pandemic, increasing the need for payments’ digital transformation. While it was already in the works prior to 2020, the pandemic simply sped up the process. In fact, things are moving so quickly that the European Central Bank (ECB) is currently considering the consequences.
“We can see that cash has been reduced in favor of electronic accounts and instant payments,” Scaffidi remarked.
He went on to say, “Credit cards are an interesting point because there are a lot of interchanges involved, while real-time payments are bank account to bank account. We are not saying that [RTPs] are going to cannibalize the credit card business, but there are new use cases, mainly coming from reducing user cash and other opportunities like loyalty programs.”
A Seamless, Convenient Future
Of course, all of the new modernization trends focus on giving customers a more convenient and seamless experience. Here are a few of the trends that are making this possible:
- Invisible, frictionless payments – The biggest shift of all is invisibility. Increasingly, the two primary payment experiences – shopping in-store and online – are blending. Regardless of where you choose to shop, customers are having to input less and less of their information and enjoying more frictionless payment experiences.
- Transition to digital invoicing. Payments themselves are not the only things that are evolving – activities associated with payments are too. More and more small- and medium-sized businesses are opting to digitize things like invoicing and accounts receivable this year. This allows them to simplify the billing process, while also getting paid faster and reduces costs.
- Growth of cross-border eCommerce. Global eCommerce is more important than ever before and continues to grow rapidly. Establishing alliances with payment providers is helping businesses to snag opportunities, overcome obstacles like international payment processing and confidently handle fraud prevention.
Where to Find an Industry-Leading Payment Provider
Of course, finding a payment provider to partner with can be easier said than done. The key is to research all of your options and compare providers that specialize in working with your business type and industry. The team at Best Payment Providers has compiled all the information and reviews you need to choose a provider that is right for you.
You can also find the latest industry news and updates on payment platforms, allowing you to stay on top of the latest payment trends and tips. Discover the payment provider that meets your needs and also has the reputation, services and support your business deserves.