We cannot seem to deny that technology has done more for us than we could have ever imagined. Many innovative payment solutions are now available across the fintech space to address several transactional challenges we have faced in previous years.
In short, financial technology advancement has enabled consumers to acquire their desired products and services wherever they’re located and whatever the cost.
So, what are the significant innovative payment solutions available currently?
Contactless payments
Check your credit or debit card, and you’ll find a sign like that depicting an Internet connection. That’s the NFC tag. Near-field communication (NFC) is a set of communication protocols that establishes a connection between two electronic devices over a short distance, about 4cm. So, you can place your credit card near a point-of-sale (POS) device and make a purchase.
But Apple Pay and Google Pay have gone ahead to enable contactless payment using NFC technology on your smartphone. So you can just tap to pay without having to make contact at a physical store. Contactless smartphone payment options offer consumers a faster and more seamless experience while making online or in-store purchases.
Payment processing and omnichannel solutions
Many fintech companies have emerged to enable remote digital payments. While payment solutions like Swift, Stripe, and PayPal have existed for years, they have gone increasingly mainstream as consumers settle into online shopping. Convenience is now the order of the day, and people don’t have to pay with cash or buy at physical stores anymore.
However, some of these payment options do not cater to all retailers, card processors, or channels. For instance, you can’t always use PayPal or a debit card.
Other more advanced and innovative payment solutions have been designed to solve that challenge. For example, PowerCARD obtainable at HPS-Worldwide.com seems to offer a suite of solutions that enables payment processing from any channel. So wherever you’re making a purchase, whatever payment options you’re shown, you can now buy without restrictions. This solution is favorable to both online merchants and shoppers.
Digital currencies
There’s hardly anyone who hasn’t come across the term cryptocurrencies in 2022. Investors and traders alike are leveraging the volatility of crypto to make more money for themselves.
But amid that, digital currencies are increasingly becoming an innovative payment solution when no third party is desirable.
When you pay with crypto, no bank or financial regulatory body is involved, so you avoid bank charges while maximizing privacy.
Buy now, pay later
Buy now pay later (BNPL) is an innovative payment solution that now enables consumers to acquire what they want even when they don’t have enough money for it at the time. This is far better and more dignified than borrowing, as you don’t collect any loan from anyone. Instead, you take the product and pay later in installments, albeit with a fee.
BNPL has attracted over 90 million consumers worldwide and shows no signs of slowing down. This is especially in regions where access to loans and banking services is limited.
We can safely say that BNPL may become even more integrated into the traditional financial ecosystem in a few years. This will allow customers to make interest-free payments online and in-store without a credit card.
Although there are downsides, you would be safe if you don’t allow BNPL to become an addiction, don’t pay late, and don’t buy beyond what you can readily afford without a given timeframe.
The Bottom Line
Consumers can now quickly make purchases using contactless payments via their smartphones, leveraging the buy now pay later option, or using crypto.
In summary, business transactions can now flow more swiftly than ever because of innovative payment solutions.
These payment solutions are forcing banks and other financial institutions to compete. Consequently, that would mean providing better services in order to stay relevant, therefore creating even more incredible options for consumers.
