Digital Payments: What’s the Next Big Thing?
As digital banking solutions scale to meet the needs of consumers, so, too, do the trends in the industry towards integrating ever more of this growing consumer base into the system.
Not only is the extension of digital banking services and digital payments solutions integral to the growth of mobile and online marketplaces, but also it is central to the monetary revolution taking place right now with cryptocurrencies and the rise of a cashless economy.
We have identified three major movements in digital banking that could shape how the next several years play out, from enhanced payments processing to the integration of new consumer blocks into the financial system.
- Enhanced Digital Payments with Robust Security
As more transactions move into the virtual space, enhanced digital payments and security processes will become more important and even a differentiating factor moving forward. One of the major hurdles that digital payments is facing currently has to do with fraud including stealing account or card numbers and even the wholesale hijacking of user accounts. Preventing this while maintaining a fast, easy payments system is easier said than done.
This comes on top of the industry’s need to meet record demand on both the consumer and the business side. Scaling technology solutions to meet this demand while innovating will act as a differentiating mechanism in the fintech industry wherein the power to leverage technological innovation and its attendant effects will become more pronounced. In other words, fintech will become a lot more competitive yet, in the process, will provide more innovation and change to the way business is conducted than is nothing short of revolutionary.
- Digital Banking Solutions for the Unbanked and Underbanked
One of the largest market segments that is currently underserved or not even targeted at all by traditional finance is the underbanked or unbanked. This cohort, either having access to minimal financial tools or none at all, often operates in the informal sector of the economy or on an entirely cash basis.
Bringing these people into the world of smartphone shopping and online everything not only unlocks a currently brick-and-mortar captive audience but also gives governments and regulatory agencies a way to reach some of society’s most vulnerable members. Digital banking and digital payments solutions are ideal for this group of consumers because they offer a cost-effective method of obtaining financial services while also giving banks the opportunity to develop new and innovative products like credit lines that help cater to this niche.
- Cashless Economy
The trends in 2021 surrounding digital banking and digital payments is helping build the framework for a larger revolution taking shape over the next few years and that is the cashless economy.
Whether evidenced in the form of the crypto craze or as a method for central governments to more effectively stimulate the economy, a cashless society’s benefits are being explored as a way to help close the gap between the rich and the poor. Of course, all of this is enabled by the massive cost savings and scaling abilities offered by digital infrastructures.
Throughout the years we have served clients and online merchants from various backgrounds providing our Virtual IBANs solutions. We have grown our client’s portfolio and have been direct witnesses of some of the most important milestones in the industry. After reading the contents of this article we will be glad to comment further with you on your specific business case or provide answers if you have a particular question you want to address to our team. You can also browse our website and learn more about the digital banking services we offer.