StormPay: Riding the Surge of Digital Payments Into the Future
1st June 2022
The uptake of digital payments is growing at an exponential rate – meaning the market is too. Here’s how your business can keep up with the Joneses of the digital payments world.
It won’t come as a surprise that paying for goods and services digitally is on the up, and rising like never before. Now, at least 50% of consumers are using digital payments in their daily lives – from buying groceries to paying their water bill. And according to the Mastercard 2021 New Payments Index, an incredible 93% of people would use emerging digital payment methods.
Identifying a single catalyst for this isn’t easy, but identifying multiple is. You only need to look at the impacts of COVID-19 on carrying (and using) physical cash, a younger generation of consumers, technology’s advances in capabilities, the drive for greater efficiency in financial management, and the need for consumers to protect their financial health and wellbeing.
The list goes on.
With all these changes come an increasingly competitive market for businesses. SMEs and big brand names alike will need to remain one step ahead by understanding consumer attitudes, and keep on the ball with evolving behaviours as a result.
Easier said than done.
In our latest whitepaper, ‘Riding the Surge of Digital Payments Into the Future’, we examine what to expect from the technology in the short- and long-term, the market trends which could influence capabilities, and ways you and your business can look to adapt.
Here’s a few things we’ve learnt that you might want to know.
The ‘Why’
The term ‘digital economy’ is a comparatively new one for most businesses, but nevertheless could soon become the norm. It isn’t only a matter of convenience, but a way to expand accessibility and inclusivity of financial health and management. So what’s driving all of this and why?
Cash is no longer king
Physical cash might’ve been steadily depleting, but we’ve seen a rapid decline in its use over the past 2+ years. Cashless payment methods are projected to grow by more than 80% between 2020 and 2025, with the Asia-Pacific region growing the fastest.
Heightened customer expectations
Consumers are looking for more than simply good UX and their name on the homepage – they want a brand which speaks to them, and the full finance as a lifestyle experience. That’s an effortless, embedded service which can support users in a meaningful way.
Emerging payment methods
Advances in technology in the 2010s have made way for greater simplicity and efficiency – not to mention capabilities. The term ‘Venmo me’ echoed back to ‘Facebook me’ and the popularity of this and other payment methods certainly compared to social media’s rise.
Regulatory enablement
Fintech hasn’t only responded to consumers’ increasing concern for data privacy and security, but leveraged it for integrity. Plus, the ease of integrating financial services, biometrics and mobile phones gives it a one-up on traditional payment methods.
The ‘How’
Understanding the rationale behind the increasing availability and relevancy of digital payment methods will always be in support of your business strategy. But let’s uncover a few ways you can help transition your business now, and in the future.
Partnerships
E-commerce and digital payment methods will evolve hand-in-hand in the coming years as one responds to another. So now could be the ideal time for you to source a payment service provider partner to keep you on the right foot.
Tap into biometrics
The global market for Biometrics for Banking and Financial Services is projected to reach an incredible US$8.9bn by 2026. Suffice to say that businesses should stay ahead of this curve now and adopt biometrics or lose out later.
Achieve growth at scale through social
Of anything in the market, social media is arguably one of the largest potential growth platforms businesses are leveraging now, and that’s not likely to change. Reviewing how social media can aid your sales strategy now, and surf the market.
What about the top concerns for consumers in the near future?
Security is up there as more younger people are understanding the implications – and sometimes consequences – of living a heavily virtual life. This is particularly true when it comes to the use of biometrics and other personal data, and should be top of mind for businesses looking to expand their digital payments offerings.
User experience is also a key priority for many users. Instant accessibility in tech can make retaining engagement and attention of consumers much more difficult, and with busier and busier lives, UX will need to be clear, concise and straightforward.
Unlock industry insights – at no cost
Want more ways you can help boost your business? At StormPay, our team of payment pros and market experts work hard to bring you the latest insights and analytics from across fintech. Our whitepaper, ‘Riding the Surge of Digital Payments Into the Future’ provides all the latest facts, figures and statistics into how digital payments are influencing business outlook – and how you can capitalise.