October 8, 2020 - As global commerce has evolved from coin to paper to card, the payments industry has inevitably swayed towards a more cashless society. With the latest advancements in technology and a growing shift in consumer behavior, there are three recent trends that will dictate the future of payments for business and financial institutions throughout the world: contactless payments, real-time payments and white-label card programs.
Contactless payments
With the COVID-19 pandemic impacting people around the world, there has been a noticeable change in the behavior of many consumers, as they now gravitate more towards contactless payment methods. As a result of this, most companies are being forced to adapt their outdated business model and provide consumers with a cohesive digital experience. With the growth of online sales continuing to spike, businesses must find a way to evolve in order to keep up with the latest technologies and consumer trends. The need for contactless payment option goes beyond just e-commerce; even at retail locations, today’s businesses are expected to accept payments via contactless cards. The days of paying by cash and check are becoming more outmoded with each passing year, and the need for contactless payment options is driving the payments industry (and businesses) into the digital age.
Real-time payments
While the concept of completing a transaction in real-time is nothing new — remember, cash is also an instant payment method — the development of more secure real-time payment options has led to greater expectations among consumers. The global economy’s evolution towards the usage of real-time payment systems has resulted in an environment where consumers and merchants expect to complete their transactions right away. Whether it’s to pay for a retail purchase or transfer funds from one account to another, today’s world has developed an appetite for real-time payments. This feature is especially valuable to the online marketplace industry, where gig workers are now getting paid in real-time, giving them instant access to their funds and simplifying the transaction process for both them and their employers. The development of real-time payment options is impacting the way people complete their transactions, and this is likely to continue as technology continues to advance. In time, the slower payment methods will become increasingly outdated, as consumers and business around the world will expect faster settlement periods, notifications and consolidated reporting.
White-label card programs
As e-commerce markets grow at a rapid pace and the world continues its shift towards an increasingly digitalized payment process, cards are becoming the most widely accepted method of payment in today’s world. While setting up a card program for your business or financial institution was once a long, arduous and expensive process, this can now be developed in a fraction of the time and cost thanks to white-label card programs. There are a number of benefits for businesses to operate a white-label card program, including an increase in brand awareness and consumer loyalty, as well as more efficient cash management. White-label card programs are a valuable tool for both B2C and B2B businesses; a card program can act as an effective loyalty program for consumers, and it is also a convenient option for companies when managing payroll, business expenses, travel costs and anything else where payments are involved. Additionally, all financial consolidation and reporting is made easier with the use of a single, centralized platform. As the world continues its shift towards a digital future, the convenience and practicality of these white-label card programs has made it the clear payment solution for SMBs and corporations alike.