The world is constantly evolving as technology advances so does payment processing and processes in general. The main goal of keeping up with new payment trends is to assure that you are offering the most convenient and efficient service to your customers and clients. Fintech, meaning ‘Finacial Technology,’ is a common term used to describe technology that alters traditional financial services. A Fintech application can be a mobile application, a website, or a hardware component that allows these common tasks to take place such as borrowing money, charging customers, or just generally moving money around.
With the new year already underway, there are new emerging technologies within Fintech that can affect how your business processes payments. Keep reading to see what is new in the world of payment technology and how you can incorporate it into your business practice.
There are already virtual assistants being used on smartphones and tablets to do minor tasks like appointment setting or automatic message reminders, but it is predicted that within the next five years, virtual assistants will be able to assist with payment processing.
Already people are using their Alexa or Google Assistant to make purchases via Amazon meaning virtual assistants are already capable of being linked to your bank account. If virtual assistants are able to store and protect consumer information, then in the future businesses other than Amazon can see payments being processed through smart device systems such as Alexa or whatever else comes out in the world of AI and Virtual Assistants.
eCommerce businesses are already used to virtual shoppers. Still, more local brick-and-mortar businesses may have to adapt to handling virtual assistant shoppers if they become more popular and feasible in the future. True POS will stay on top of any emerging trends and assure businesses that their point-of-sale processing systems will adapt as time for this technology progresses.
While real-time payments already exist, it is expected to become more popular within the new year. Real-time payments are instant transactions rather than having to wait for cards to be authorized. That means funds are instantly available between two parties, customers, and businesses.
The ability to instantly pay a bill really interests consumers and makes it more convenient for consumers to make purchases if the money is moving in real time. Fintechs are looking into how they can incorporate real-time payments into their systems in order to provide convenience to their clients. Plus, having real-time payment systems set up to pay your employees will make managing your business easier.
Cryptocurrency and Blockchain Technologies
A lot of different payment systems are set up to be able to accept blockchain technology that handles and stores people’s cryptocurrency. Some places now accept cryptocurrency, but now the retail industry is planning on adding this technology to the payment processing system.
Blockchain technology has the capability to track specific goods through the supply chain, which is more desirable for luxury goods services because blockchain technology can authenticate if a product is legitimate or not. Cryptocurrency follows under the umbrella of customers wanting real-time transactions since blockchain technology allows for crypto transactions to move in real-time rather than a prolonged authorization process.
While a lot of people are still unsure about cryptocurrency investment or even businesses are unsure about using blockchain technology to accept crypto transactions, at least 43% of Americans ages between 18 and 29 have traded or used cryptocurrency. Meaning there is still a clear demand for crypto to be accepted and used in real-time at businesses.
Since the pandemic, embedded finance has been on the rise in popularity within business practices. Embedded Finance is the use of financial tools or services by a non-financial provider. It is supposed to make the streamlining of making purchases and handling finances easier for consumers. The most popular example of embedded finance is Klarna and Afterpay which allow you to make payment plans for purchases online.
This process can benefit both businesses and consumers since customers are more likely to make bigger purchases if they have the financial access to make purchases like Afterpay being able to set up smaller payment plans without having to set up a credit card or loan. Businesses can benefit from this by seeing an increase in purchases and understanding their consumer’s spending habits.
Embedded Finance is also good for companies to incorporate insurance services, this can deliver insurance plans instantly to customers who want to be sure that the product or service they are investing in is secure and protected.
It is reported that embedded financial services generated 22.5 billion dollars in the United States, and was forecast to reach over 230 billion U.S. dollars by 2025.
The demand for convenience and instant gratification is the biggest trend when it comes to real-time payments and embedded financial services. It can be difficult to understand where your businesses can fit within the ecosystem. Understanding your end goal with your services and products is best to understand how investing in different processes and programs can elevate your business. Merchant services can adapt and help your business stay on top of the demand for more convenience during transactions.
True POS is here to offer systems that make everyone’s lives easier. Your customers will be satisfied with an easy and fast checkout process with systems that can handle their needs. Your staff won’t have to manually handle payments. You will also be able to keep track of your inventory in a far more hands-off manner. As well as being introduced to creative and strategic new ways to lower costs and boost revenue.
With a POS system that you can count on, managing your payments is more accessible and safer than ever before. Get a free quote today and learn more about how True POS can help your small business.