According to a recent
McKinsey & Company survey, e-payment apps are experiencing huge growth in popularity. The survey says that the use of these payment apps increased from 51% to 62% between 2021 and 2022. In-app purchases and peer-to-peer payments were the two growing areas.
There are still impediments and regulatory concerns corroborating all digital payment apps. But this doesn’t prevent them from becoming a key component of the financial services industry. They continue to set new trends every once in a while. Here we are going to explore some of these trends.
Bringing Together Offline and Online Payment
When customers returned to physical stores in the post-pandemic period, they brought a big change in payment preferences. They are no longer satisfied with cash payments. Now consumers like the convenience of a frictionless way of paying through e-payment apps. This goes hand in hand with the increase in smartphone users worldwide and is the biggest contributor to this trend.
Mobile payments offer a seamless purchasing experience, allowing customers to make purchases instantly with doorstep delivery and the option to pick up their items at a nearby outlet. Thanks to the increasing popularity of e-payment apps, merchants are obliged now to offer online and offline payment options to their customers. When browsing over
social media ideas for valentines day, a chat messenger app can just allow users to send gifts and make transactions through the same app.
Obligations apart allowed merchants to make more sales, resulting in a positive and seamless shopping experience. Many marketers also consider it an aspect to edge out the competition in the market.
Instant International Payments
The growth of e-payment apps on a global scale has also played an instrumental role in increasing international business opportunities. The demand for faster and more secure international payment channels is pertinent for businesses with overseas markets. The traditional cross-border payment solutions are often inept in addressing their demands.
Now the e-payment apps offer them a reliable instant payment solution. Both businesses and consumers can now transfer funds instantly between financial institutions across borders. No wonder there are widespread predictions that instant e-payment to take over a significant portion of B2B transactions by 2023.
In this regard, we must take note of blockchain technology which is likely to play a major role in facilitating cross-border instant payments through apps. The role of Blockchain is significant as it is known for efficiency and transparency. However, there are still scopes of improvement regarding cross-border payment.
As the International Monetary Fund says, customized and secure internet connectivity among countries will be critical for instant international payments. Despite the challenges, IMF feels that multilateral cross-border e-payment solutions have excellent growth potential in the future. No wonder for cross-border instant payments, many countries and regions are bringing new regulations.
Payment Apps for Embedded Systems
Whatever you name it, super apps or embedded e-payments, it has become a significant trend in the digital payment industry. The embedded e-payment option and other app features and experiences are reducing friction. A
mobile app creator can now integrate e-payment features with different types of apps. From WeChat to WhatsApp to many others, integrating payment as a function has become a new trend now.
From chat messaging and social media to e-commerce and retail to entertainment and unique interest apps, integrated payment feature in various applications and systems will be more popular in the coming years.
Bain & Company, the embedded transaction value is going to be $7 trillion in valuation by 2026. Jodie Kelley, many fintech companies are taking advantage of the opportunity to market embedded e-payment solutions to app development companies just starting with payment features for their apps. The demand for e-payment integration will grow by leaps and bounds in the coming years.
Relying On the Cloud for Payment Data
Businesses are also seeking new value from financial and payment data. For this, they are relying on cloud solutions known for seamless access, analytics integrations, and efficiency. By securely transferring data to the cloud, companies can streamline financial data flow and help business decision-makers and strategists. To bring the cloud edge to your startup e-payment app, you can
hire Indian software developers.
Thanks to cloud platforms, companies can now access real-time payment data through multiple business channels. Apart from streamlining payment processes, this helps companies to stay tuned to the rapidly changing business landscape. Having data ready for querying businesses can contextually make payment data accessible for faster checkout. The same also helps improve loyalty and rewards programs and send fraud alerts for security measures.
On top of all these, cloud-based payment data management also helps businesses take advantage of real-time data and data-driven insights to know customer trends and take competitive measures. By leveraging real-time data, companies can stay ahead of the competitive curve.
Flourishing BNPL for B2B Segment
Buy Now, Pay Later (BNPL) is a B2B transaction trend going hand in hand with e-payment solutions. This loan form allows customers to pay for a product or service in small, interest-free installments. This financial service provides customers greater financial flexibility while allowing the business to receive full payment in time.
BNPL providers typically handle the installment loan payments directly with the customer and pay the business the full amount of the purchase. As BNPL becomes more regulated, this creates new business opportunities beyond the traditional customer-business relationship.
One such opportunity is for B2B companies, which can benefit from offering secure and trustworthy BNPL services. The key advantage of BNPL for B2B companies is the ability to make big-ticket purchases without paying the full amount upfront, effectively using BNPLs as investment-like tools. This allows B2B companies to manage their cash flow better and invest in new opportunities.
Advancements in payment technologies and evolving consumer habits create new horizons for smart transactions. Since the changes in the digital landscape are short-lived, we need to stay informed about the latest developments in the e-payment industry. You can turn change in your favor only when exercising full control over its impact.
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- Source: https://www.finextra.com/blogposting/23676/biggest-e-payment-app-trends-to-watch-out-for-in-2023?utm_medium=rssfinextra&utm_source=finextrablogs