How to Capture Growth in Digital Payments
The payments industry has been shifting to digital in recent years and this trend has accelerated for both consumers and businesses throughout the COVID-19 pandemic. But what exactly is driving this shift? And how can companies in the payments industry capitalize on it.
Digital Payment Drivers
There are several factors driving the shift from cash to digital payments, including the following:
The Rise of Mobile Payments
With more and more people shopping online via their smartphones, it's no surprise that mobile payments are on the rise. In fact, according to Juniper Research, mobile payments are expected to reach over $3 trillion by 2025.
The Increasing Popularity of Contactless Payments
The COVID-19 pandemic has made contactless payments even more popular, as people are looking for ways to minimize contact and stop the spread. According to Mastercard, 70% of contactless payment users will continue to use contactless methods after the pandemic.
The Growth of eCommerce
The COVID-19 pandemic has also resulted in a boom in e-commerce sales, as people are doing more shopping online and avoiding brick-and-mortar stores. This increase in online shopping is likely to continue even after the pandemic subsides.
Capitalizing On Opportunities
Due to this rapid growth, there are a number of opportunities for both traditional players in the payments industry as well as new entrants to capture a share of the market. Outlined below are three key ways to capitalize on growth in digital payments:
Develop A Niche Product Or Service
One way to capture growth in digital payments is to develop a niche product or service that meets the needs of a specific segment of consumers, cater to a single business vertical, or improve a specific link in the payments value chain. Companies have been successful by creating innovative solutions that focus on increasing transaction speed, streamlining onboarding and servicing, and leveraging analytics to build a personalized experience.
Build Up A Network Of Partners
Another way to capture growth in digital payments is to establish partnerships with all types of players within the payments ecosystem, including traditional banks, payment processors, payment networks, ecommerce platforms, retailers and new and emerging fintechs. By partnering, each player is able to bring to bear its strengths - whether it is agility and flexibility, scale, or well-established marketing and distribution channels.
Focus On Markets That Have Tremendous Untapped Opportunity
A third way to capture growth in digital payments is to focus on markets where there is higher potential for growth and those where there are many opportunities for innovation. As digital payments accelerated throughout the pandemic, a few of these areas became apparent. For example areas such as business-to-business digital payments and cross-border payments presented significant opportunities for new players to elevate the payments experience.
Get Started with Digital Payments
At Bounteous, we understand that critical insight is the catalyst for innovation. Digital payments are growing in popularity because they offer a number of advantages over traditional payment methods. They are convenient, secure, and fast. The future of digital payments looks bright as companies continue to innovate and consumers increasingly adopt these new technologies.As the digital payments industry continues to explode, how will your company capitalize on the opportunities that lie ahead?