Consumer habits are changing fast, and shoppers are increasingly choosing to shop online rather than visit physical shops. For this reason, online payments have become an essential part of nearly all businesses, and business owners should consider the different financial technology that has developed to support these payments.
A number of different payment innovations have contributed to the success of online shopping, including fintech solutions such as e-wallets, in-app purchases and payment services such as PayPal. These innovative ways of making payments have made the customer experience much more convenient, making them more likely to shop online. Keep reading to find out more about innovation, technology and payment and how this impacts your business.
What are payment innovations?
Innovation, technology and payments are closely linked. Payment innovations can be defined as any fintech solution that offers a new or unique way to pay for a product or service, generally with the aim of making the experience more convenient or faster for the customer.
For example, mobile payment services such as Apple Pay are a classic example of a payment innovation. Customers can easily pay for services using their smartphone and either facial recognition or fingerprint scanning, without ever having to take their card out and enter details.
Another example is cryptocurrency, a digital payment method that allows for easier international payments and higher security thanks to encryption. Cryptocurrency continues to grow as a popular payment method for these reasons, and businesses who want to remain competitive should consider whether their customers want to pay with these digital currencies.
An increasingly popular technology is the digital wallet, a service which offers an alternative to real, physical wallets. Customers can store funds there and use it to make purchases both online and offline, and it can be integrated with mobile banking apps and other payment platforms.
Who provides these payment innovations?
There are a number of different companies leading the way in innovation and technology payments, including fintech giants such as crane payment innovation, Klarna, Stripe, and many more. These companies specialise in different areas, ranging from buy now pay later solutions to offering unique ways to pay online, such as through mobile wallets.
More global opportunities
Innovation and technology payments help to break down the borders in international business. You can wave goodbye to expensive transaction fees and exchange rates thanks to international payment services such as PayPal, Transferwise and Western Union.
Thanks to this, businesses are able to access the global market rather than relying solely on their local market, which can offer a great boost to revenue thanks to an increased pool of customers. What’s more, it’s much easier to collaborate with international businesses and make B2B payments.
This fintech is also beneficial for emerging markets who may struggle to access banks, allowing them to participate in the global financial system through these services.
Increased accessibility and efficiency
As fintech develops more and more payment solutions, these in turn become easier to access. Advancing technology means that equipment and software is more efficient and cost effective, which makes it easier for smaller businesses to access. The same software that would have been out of reach five years ago is now available to emerging businesses, who can now increase their revenue by making payments more convenient for their customers.
In addition to this easy accessibility, payment innovations make all aspects of a business more efficient. First of all, the customer experience becomes more seamless and involves fewer stages, which makes for better satisfaction and an increased chance of purchasing products. In addition, many barriers for the business are also removed, such as expensive transaction fees and currency conversion.
We can help
GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.