The payments industry has gone digital in recent years, and this trend has accelerated for both consumers and businesses through the COVID-19 pandemic. But what exactly is driving this change, and how can companies in the payments industry take advantage of it?
digital payment driver
Factors driving the shift from cash to digital payments include:
Rise of mobile payments
With more and more people using their smartphones to shop online, it’s no surprise that mobile payments are on the rise. In fact, according to Juniper Research, mobile payments are expected to exceed $3 trillion by 2025.
Growing popularity of contactless payments
The COVID-19 pandemic has made contactless payments even more popular as people look for ways to minimize contact and stop the spread of infection. According to Mastercard, his 70% of contactless payment users will continue to use contactless methods after the pandemic.
e-commerce growth
The COVID-19 pandemic has also caused a boom in e-commerce sales as people shop more online and avoid physical stores. This increase in online shopping could continue even after the pandemic subsides.
take advantage of the opportunity
With this rapid growth, there are many opportunities for both traditional players and new entrants in the payments industry to capture market share. Below, he outlines three key ways to capitalize on the growth of digital payments.
Develop niche products and services
One way to capture the growth of digital payments is by developing niche products and services that meet the needs of specific consumer segments, catering to single verticals, or improving specific links in the payments value chain. . Companies thrive by creating innovative solutions focused on increasing transaction speed, streamlining onboarding and service, and leveraging analytics to build personalized experiences.
Build a network of partners
Another way to capture the growth of digital payments is to establish partnerships with all types of players within the payments ecosystem, including traditional banks, payment processors, payment networks, e-commerce platforms, retailers and emerging fintechs. That’s it. By partnering, each player can leverage their respective strengths, including agility and flexibility, scale, and established marketing and distribution channels.
Focus on markets with tremendous untapped opportunities
A third way to capture the growth of digital payments is to look at markets with high growth potential and opportunities for innovation. Some of these areas have come to light as digital payments accelerate through the pandemic. For example, areas such as business-to-business digital payments and cross-border payments provided great opportunities for new players to improve their payment experience.
start digital payments
At Bounteous, we understand that critical insights are the catalysts for innovation. Digital payments are growing in popularity due to their many advantages over traditional payment methods. They are convenient, safe, and fast. The future of digital payments looks bright as businesses continue to innovate and consumers increasingly adopt these new technologies. As the digital payments industry continues to explode, how will your company capitalize on upcoming opportunities?
