It’s impossible to predict the future, but it’s a good idea to keep an eye on trends in the payment industry. New customer-facing technology, regulatory changes and digitization of payments across the globe are having an impact on FinTech. Let’s take a look at a few trends for 2016, as noted by CapGemini.
The intersection of tech and regulations
Technological innovations are bringing customers and merchants together in new ways, such as mobile wallets and mobile merchant payment solutions. Peer-to-peer money transfers and retail purchasing are in place and benefitting the most, but corporate and B2B sectors are expected to catch up soon.
The term “regulations” often has a negative connotation, as rules and restrictions can strangle growth. In this case, however, the organizations keeping an eye on the payments industry are pushing innovation and keeping a healthy environment for competition while making sure consumers are protected.
In Credorax’s case, the current state of the industry has allowed innovative platforms such as our flexible ePower 2.0 to develop and flourish. We offer our clients flexibility, and Credorax’s particular knowledge base and customer service is leveling the playing field for businesses of all sizes that need to use onboarding, processing and reporting.
Caption: We’re keeping a sharp eye on how payments are occurring around the world and calibrating our position in the payments ecosystem.
Greater volume of payments, greater volume of options
One of CapGemini’s observations was that PSPs will use their expertise to encourage value-added services. We have already seen how some European logistics / supply chain providers have expanded their offerings to enable enhanced payments modules, for example. Value-added services already on tap include:
- Account and data aggregation on digital interfaces
- Merchant-funded customer loyalty programs
- Digitized corporate payments
Business-to-consumer transactions and more corporate online payments are increasing the amount of money transferred in cross-border payments, on a global scale. (These include cross-border credit card payments and international remittances.) Partnerships such as the one between Credorax and Vantiv, a credit card and payment processing outfit, are the result of the uptick in sheer volume of payments.
What trends and forecasts in the industry have caught your eye? Is technology keeping up with the demands of both businesses and consumers? We’ll be keeping an eye on how things develop!