The advent of cost-effective and cutting-edge small business payment solutions has created an equal footing for small enterprises and large corporations. Rather than investing heavily in systems that frequently require upgrades, businesses of all sizes can now access the newest technology and enjoy the same processing rates as the market’s major players.
However, many small business owners still rely on outdated payment systems and technology. If you’re ready to challenge the status quo and adopt the latest in tech, here are five payment trends to consider.
Biometric Payments
Biometric payments are a rapidly growing type of digital transaction worldwide. Originally utilized mainly by security agencies, these methods have advanced significantly and are now commonly used by Visa and MasterCard. These payment trends rely on physical characteristics for authentication to identify a person for accepting payments. Various biometric authentication methods include:
- Facial recognition
- Retina scanning
- Iris scanning
- Vein pattern analysis
- DNA matching
While typically part of a two-step authentication process, biometric payment methods offer numerous advantages. One of the biggest is convenience, allowing consumers to easily and effortlessly verify their identity. Get a credit card scanner that can read biometric data, and you’ll be ready to go.
ESG integration
Sustainability is rapidly emerging as a crucial social and regulatory focus within the financial and payments sector. Over 75% of the world’s top 250 companies have set targets to reduce carbon emissions.
Yet, sustainability extends beyond just meeting evolving regulations and satisfying stakeholder expectations. It is quickly becoming a vital growth sector and is increasingly perceived as a competitive edge for financial institutions.
Companies can harness comprehensive services to pinpoint key ESG opportunities, craft and execute organization-wide sustainability strategies, and create compelling ‘green’ product value propositions.
Real-Time Payments
Real-time payments (RTPs) are revolutionizing the payment industry by enabling secure transactions for merchants, consumers, and financial institutions. They offer enhanced payment visibility, improving cash flow and daily operations management.
The key advantage of RTPs is their ability to initiate and settle transactions instantly, providing businesses with valuable insights to meet customer demands more effectively. RTPs have the potential to be a significant breakthrough by combining payment and data in one transaction. Banks looking to join the RTP network can benefit greatly by partnering with a technology provider.
Buy Now, Pay Later
Bank loans are the traditional go-to for borrowing money. However, e-commerce has introduced a new option, buy now, pay later. This emerging payment trend allows customers to purchase pricey items immediately and withdraw payments over weeks or months without interest.
BNPL’s popularity is largely because younger consumers hesitate to use credit cards. With BNPL, they can acquire goods or services without falling into unmanageable credit card debt, offering a lower initial cost. It also allows those with low credit scores to make purchases easily.
Mobile Payments
Europe boasts numerous mobile payment solutions, but crossing national borders often reveals a lack of interoperability, an issue that needs addressing. Several European banks have formed the European Payments Initiative (EPI). Since its 2020 launch, EPI has been significantly revamped, yet its primary objective remains the same: to streamline Europe’s payment ecosystem.
To this end, EPI is developing a pan-European digital wallet based on SEPA Instant Credit Transfer transactions (SCT Inst). Recently, EPI announced the acquisition of iDEAL and Payconiq in the Benelux region, which will form the foundation for the envisioned payment ecosystem.
Endnote
Online businesses need time to adjust to emerging financial trends, but adapting to the right technology for security and convenience is crucial. If you want your business to lead in the payment sector, consider these trends for your strategic planning and initiatives.
