The fintech industry is constantly evolving and creating a better customer experience. Businesses are seeing the need to adopt the newest technology to keep their customers satisfied. Although there are many technological advances in the industry, here are the top three that you should be aware of this year.
Buy Now Pay Later (BNPL)
Consumers love to have flexible payment options, and BNPL services provide exactly that. “Buy now pay later” is a deferred payment solution that allows customers to purchase their goods now and pay later. It has risen in popularity ever since the pandemic populated the e-commerce space. BNPL is super convenient for consumers who need that extra flexibility when it comes to making payments on essential products.
BNPL works just like a credit card; consumers purchase a product through an online retailer, and the store receives payment right away, but the consumer will have a 30-45 day period to pay that money forward. This type of transaction can be done at little to no extra cost for customers and can give them credit capabilities without the stress of a credit card.
Payment solutions are becoming faster than ever with the help of contactless technology. Customers appreciate a quick and easy check-out process and are getting more comfortable with EMV and mobile payments. EMV chip cards are known to be more secure than the traditional magnetic strip card which is why they are growing in popularity. Some merchants are even requiring customers to use EMV chips due to the safety and reliability of the payment transaction.
As more and more mobile phones are being produced with NFC (Near Field Communication) technology, the mobile payment industry has seen huge growth. Being able to pay with the tap of a smartphone or smartwatch is diminishing the need for physical wallets and consumers love it. As people become more comfortable with contactless payment solutions, they will soon become the preference of consumers around the world. Contactless technology is still at the beginning of its development but is here to stay.
The cryptocurrency market has been known to be very volatile, but it could bring many conveniences to the world of fintech. One of the main solutions that blockchain technology will provide is cross-border payments (purchases made from one country to another). Historically, cross-border payments came with a variety of fees and extremely long processing wait times. Blockchain has the potential to allow for quick transactions with minimal fees.
The great thing about blockchain is that it is decentralized, meaning there is no institution involved that would charge fees for their services. It is a true person-to-person payment that can be sent across the world almost instantly. The space needs a lot more development before it can compete with traditional banking, but will continue to grow in 2023.
Fintech Solutions For You
If you’re looking to upgrade the financial technology for your business, we offer a range of solutions that can be customized to your needs. Contact us today to learn about our fintech solutions and how we can serve your business.