The amount of annual revenues seen through the use of global payment services has been rising steadily for the last few years. Indications are that this rise will continue as more and more businesses rely on a global system of payment and marketplaces spread into new areas. But with this increase in the widespread use of online payment system comes the ability to disrupt the flow of money and goods. How will these four disruptors, expected to get stronger with the growth of the global market, affect your business?
The Rise of FinTech versus Banking
In the past the role of financial payment centers has always been the banks. Whether you do business in a country that tightly regulates its banking or one that prefers the wild west approach, the reliability of knowing that banks were at the core gave all business stability. But start-up’s in the technology world of financial technology companies or FinTechs has disrupted this balance. As more and more customers expect to be able to make payments through smartphones, these non-financial institutions have stepped into the breach to offer banking services without the structure of an actual bank. How well banks will be able to compete with these upstarts remains to be seen, but either outcome is bound to affect everyone’s business.
The Modernization of Traditional Banking
Part of the response to new players in the financial field is that traditional banks have realized they need to upgrade the technology they do have now. Some countries have been slow to realise this, while others such as Denmark and Sweden have risen to the challenge. But these upgrades don’t come cheap and all of us, businesses and citizens alike, must pay for these to happen. As more and more banks discover that they need to offer the latest in online services to stay competitive, these costs are bound to be reflected in our own cost of doing business.
The Growth of Cross-Border Payments
Nowhere has the need for global payment services been more obvious then in the widespread growth of cross-border payments for business. Cross border shoppers have doubled their buying power in the last few years, making this a phenomenon that continues to balloon in importance to businesses of all types. When looking at global customers, over 70% of these made payments to businesses in other countries in the last year. The growth in this type of business opportunity will only grow in the coming years, creating more need for new and innovative approaches to global payment services and systems.
The Rise of Digital Financial Digital Services
Almost every aspect of the traditional financial institution we now know has either become digitized or is about to do so. As more and more customers become used to the ease and convenience of these digital services in the banking community, the streamlining of bank services will become commonplace. This speeding up of financial service actions will affect all aspects of business, making the digital financial world one we will all, as modern businesses, need to embrace. Do you have a plan in place to include this revolution in financial interaction with potential customers for your business?