Posted: December 2021
Well, will you look at that? Another year has passed. It’s almost 2022 when 2019 felt like it was just two weeks ago.
One of the silver linings in this seemingly never-ending situation we’re in, though, is the great development in certain industries. Such is present in the digital payment world, and, as you might’ve guessed from the title, that’s what will run through in this piece.
Digital payments are part of the fintech industry, an exciting arena that combines two very, very interesting fields: finance and technology. It’s an established niche for at least a decade, but it still feels a fresh, new thing because of the breakthroughs it’s constantly making. Let’s start.
Online banking took off when banks started to release their mobile application, which was basically an extension and more personalized and interactive version of its predecessor: browser-based banking. It’s like any other app out there, and it can only get better and trendier.
Further, it is backed by a technological world that simply won’t stop progressing, so consumers are flocking to it as expected. Things are just easier too.
The Manila Times had an interesting interview with Advance.AI’s Southeast Asia Digital and Data Solutions Director Aradhna Sharma last July 2021. Here’s an excerpt of their conversation:
The Manila Times (TMT):What is triggering the rise of virtual banks? What will be the role of banks and financial institutions in the future?
Aradhna Sharma:[Two] major factors are the use of smartphones and internet connectivity. Nowadays, you could bank anywhere, anytime with these two factors.
Coupled with this is the rise of the tech-savvy generation known as digital natives, who use their mobile phones to do everything from ordering food to online shopping and groceries and yes, even banking. These demographic demands to bank anytime and anywhere, often from the convenience of their home.
Sharma then continued and said that the pandemic guided everyone to be more ‘digital’ in their banking activities, so much so that it’s not limited to any age bracket. She also credited its 24/7 availability, arguably its best trait.
Covid-19 has also rapidly accelerated the shift toward online banking services, and even "older" folks are now forced to do simple banking transactions online, such as opening accounts, deposits or transferring money, etc. After the first taste of safety and convenience with online banking, most consumers will not likely go back to the old ways of in-person banking.
Amid this backdrop, virtual banks are surging in popularity because they enable 24/7 banking and could onboard customers no matter where they are located.
E-wallets were already making quite the noise prior to the gigantic digital shift in 2020, so just imagine how it further grew when COVID-19 first officially peaked. Fast forward to now and it has become a very considerable necessity, given how easy it is to use and widespread it is on business establishments across the country.
In one of their articles from March 2021, Payments Journal said that 11% of online shoppers worldwide use their mobile wallets on a weekly basis, and that by 2022, roughly 2.7 billion people in the planet will be in on the trend.
Note this quote from fintech executive Ellerd Liem. We’ve heard this time and time again, but it’s a simple, stone-cold fact, and it’s why we should continue expecting e-wallets to progress.
Contactless payments reign supreme in a world where strict health regulations call for people to avoid physical interaction. It is certain that people who have discovered the benefits of convenient, contactless online shopping will want to continue enjoying them. More businesses, if not all, will need to allow online payments to keep up with this demand.
Buy Now, Pay Later
We touched on this subject in one of our previous articles, where we talked about how Buy Now, Pay Later (BNPL) will be catapulted by the prevailing generations of today: Millenials and Gen Zs. It appears to be a sound prediction as it involves flexible payment terms and attracts the young, easy-go-lucky type of shopper, who are oftentimes short on budget for certain desired goods.
It’s not just about the target consumer fitting the scheme, though. BNPL is simply a win-win for both parties: the merchant gets profit, increased value and conversion rates, and possibly more buzz, while the consumer gets his/her desired goods with his/her preferred pace in payment.
If that’s not enough, take this recently reported massive push into consideration:
Buy Now, Pay Later (BNPL) services have enjoyed an almost frenetic boom since the beginning of the coronavirus pandemic, with some growing by triple digits during the holiday season of 2020. Now, a major payment network is joining the fray. On Sept. 28, Mastercard announced that it plans to launch a new program in 2022 to offer buy now, pay later services to a variety of banks, lenders, fintech companies, digital wallets, and others.
Mastercard is a major name as we all know, and now that they’ve hopped in the bandwagon, the sky’s the limit for the vastly spreading BNPL process.
We just tackled this as well, and much like the different types of development surrounding fintech in general, the progression is due to the increasing demand, which was then caused by the COVID-19 pandemic.
Payment links are URLs that redirect to a secured payment form. In there, the order summary is listed, and the customers are able to pay via credit or e-wallet, depending on the payment provider. It’s specifically made for online sellers who don’t have a website as it is basically a standalone online link that will only be accessed to input a payment.
The reason payment links are deemed to have a bright future is its ability to address everyone’s needs and preferences. It’s the answer for small-time sellers who can’t afford to buy a domain, build a website, and avail themselves of a checkout solution. Consumers, on the other hand, are welcomed into a new convenient method of payment.
Dig in and invest in better technology
Trends are hit or miss, but it’s hard to deny the momentum those four possess, so merchants ought to dig in and invest in advanced payment tools and processes.
Online banking, QR codes, BNPL, and payment links – all are part of our payment solutions. Explore our site, learn the solutions’ basics, and don’t hesitate to call or email us to get more info.
As VeritasPay continues to provide high-quality payment solutions and promote cashless transactions, the company is also dedicated in bringing in fresh and informative content. We’ll be continuing to share new articles about our products, services, and varying subjects within the industry as we move forward.
Contact us here to know more.