Financial technology, or Fintech, continues to take the modern world by storm by driving digital transformation. The convenient technology makes it easier for individuals to make purchases, transfer money, and trade without conventional financial rules set forth by a centralized institution.
The umbrella term “Fintech” comprises various solutions businesses have implemented to improve their overall financial efficiency that optimizes customer experiences. Some popular examples of Fintech solutions include digital currencies, online lending platforms, and mobile payments.
Industries like lending, investments, and payments have found themselves ahead of the Fintech trend, with market experts expecting the global Fintech market to surpass $300 billion by 2030. However, while your business may benefit from the Fintech wave, going against traditional financial systems requires proper measures for ideal outcomes.
Partnering with National Merchants Association, a leading payments advocate, can help your business adapt efficiently to the latest Fintech developments.
Why Does Fintech Matter?
Fintech provides your business with multiple advantages over traditional financial options. Fintech allows you to effectively focus on creating winning customer experiences while avoiding the complex transactional issues that may arise when partnering with a bank or centralized financial institution.
Specifically, Fintech solutions can give smaller businesses an edge over larger competitors, as they provide easy onboarding without costly or time-consuming adoption.
Examples of Fintech Business Solutions
Quality Fintech solutions provide you with quality functions that can streamline and optimize your in-store transactions and customer engagement.
Mobile Payments
Mobile payments have become a popular mode of transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account...., a trend escalated by contactless business practices during the pandemic. Market research predicts that half of the world’s population will use mobile wallets by 2025.
The same report shared that mobile wallets transacting over $1 billion annually will increase by 27% between 2020 and 2025. As such, merchants might face acceptance challenges during the period. On the other hand, providing Google Pay or Apple Pay transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... options in your store could attract more customers and purchases in the long run.
Social Payments
Social payment solutions enable your customers to complete a merchantA business that accepts credit cards for goods or services. transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... directly from their social media platform via an application or website browser. In addition, these Fintech solutions allow people to authenticate transactions by exchanging user account information such as registered emails or phone numbers rather than sensitive financial information.
A social payment solution differs from peer-to-peer systems through linking with a merchantA business that accepts credit cards for goods or services. or business account rather than between two end-to-end users. For example, your brand may set up social payments as an extension of your social media strategy, creating an integrated channel for fuss-free transactions from messengers or mobile apps.
Digital Currency
Digital currencies run with rules or protocols on a fixed public ledger known as the blockchain. Essentially, digital currency owners may engage in secure transactions with businesses through the blockchain, with optimized account verificationThe point in which the lease company verbally verifies (confirms) with the merchant that the equipment has been delivered and that they understand the lease terms in full. that prevents the risks of fraudulent activities.
The Importance of Financial Tech in the Digital Landscape
Fintech offers your business a plethora of cost-effective benefits. Traditional bank-based financial solutions require business owners to undergo stringent credit assessments and lengthy waiting times for business loan approvals (i.e., anywhere between a month and 180 business days).
However, cash flow remains a pressing priority among businesses. According to the U.S. Federal Reserve, many companies face severe financial issues coping with a 2-month revenue loss.
Fintech offers a seamless and efficient process that mitigates the cash flow issue, especially for small businesses that aim to maximize their resources. Specifically, Fintech eliminates the go-betweens through reliable automated processes that accelerate data access and management.
The efficiency of Fintech solutions has also led to collaborations between banks and tech firms. For instance, J.P. Morgan paired with startup Even, enabling real-time salary payments for the U.S. workforce.
Quick and Fuss-free Payments Driving Customer Trends
Customers’ payment habits have progressively moved to cashless options, which complement modern Fintech solutions. In addition, the business disruptions caused by the pandemic have catalyzed the shift in customer spending from physical to “touchless” eCommerce channels.
According to the World Payments Report from I.T. consulting firm Capgemini, 35% of credit card owners have added them to a digital wallet, while 41% of cash users have tried a contactless card. Industry experts believe that contactless Fintech payment will remain a standard among businesses.
Tapping on the Power of Open APIs
Essentially, Fintech solutions enable your customers to engage in secure and remote transactions from the comforts of their mobile devices, enabling a smoother buyer’s journey regardless of time and location.
Fintech solutions operate with open API (application programming interface). As a result, customers can conveniently request access to their bank account and connect with third-party remote services for automated payment data transfers through a secure channel.
Leading Fintech experts constantly update and improve the safety features in their platforms and applications to maintain the highest level of trust between businesses and their customers. Some trusted security features include two-factor authentication and biometrics that provide additional account verificationThe point in which the lease company verbally verifies (confirms) with the merchant that the equipment has been delivered and that they understand the lease terms in full. before finalizing a transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.....
Modular Flexibility
Leading Fintech solutions disaggregate the conventional offerings of banking, giving you access to targeted solutions according to your business needs. For instance, you might choose a Fintech vendor that focuses on enhancing the information security of your payments through 24/7 access. Alternatively, you might partner with a mobile-first Fintech specialist to leverage digital shopper trends where 8 in 10 shoppers opt for mobile shopping.
With Fintech services, you can conveniently choose the most suitable configurations for your payments while avoiding bells and whistles, resulting in a highly cost-effective business strategy.
National Merchants Association – A MerchantA business that accepts credit cards for goods or services. Account Dedicated to Your Business Needs
National Merchants Association is a dedicated merchants account that Works For You®. We will stand by your corner at every step of your Fintech journey, From enhanced mobile invoicing to safeguarding your transactions from the latest cybersecurity threats.
Our experienced payments specialists will guide you through the most suitable solutions for your sales, paving the way for secure transactions and optimized customer experiences for eCommerce and brick-and-mortar businesses.
Contact National Merchants Association to discover the most effective Fintech payment solutions that will provide your most valuable customers with an enjoyable shopping experience that keeps them returning for more.
About National Merchants Association
National Merchants Association is a merchantA business that accepts credit cards for goods or services. advocacy group dedicated to reducing the unnecessary fees associated with accepting credit card payments. Since 2004, they have delivered tailored payment processing solutions and best-in-class merchantA business that accepts credit cards for goods or services. service and support for all levels of risk. Whether it’s high-risk or low-risk, brick-and-mortar or e-commerce, National Merchants Association will create the best processing experience for your business. For more information, visit legacy.nationalmerchants.com or call (866) 509-7199.