COVID-19 has placed financial pressure like never before on companies and consumers. Banking institutions are forced to facilitate alternative payments and transfers with new automation, due to the increased number of e-commerce transactions and new consumer trends. A large proportion of people around the world made their first online purchase ever this year, with more than 13 million credit card cardholders making payments through e-commerce for the first time between January and March. So what’s next for digital payments in 2021? Robust digital growth makes alternative payments a dynamic sector for consumer demographics that are still developing and it also introduces a unique set of challenges.
Ensuring financial inclusion for the future is an ongoing challenge for merchants trying to expand their reach. Two major hurdles to be overcome here are being able to offer multiple transfer platforms for customers making online purchases without compromising their financial information, and providing vouchers for customers to confirm their digital payments in real time. Data security is something customers actively seek – they don’t need to be persuaded to take approaches that don’t compromise their financial information, accessing their banking information via apps and secure sites on their mobile devices. Banks, companies and start-ups alike are rushing to adapt to these shifting consumer preferences.
Working alongside merchants is also crucial to solving digital payment challenges. Partnering with other digital banking companies and establishing multiple distribution channels for commercial transactions is an excellent start. Simple communication and accessibility are also critical toward helping merchants connect with consumers and understanding their needs and preferences. Countries are learning from each other to establish rapport and build new target audiences to help improve their business strategy, which starts with the implementation of digital wallets and alternative payment options in their markets.
As 2021 approaches, will digital payment options continue to be a choice or a mainstream behavior? It is too early to predict long-term trends, but we can try to prepare for them and be ahead. PaidYET is a cloud-based, PCI compliant billing solution designed to helps small to large enterprises manage operations, (POS) transactions, billing and invoicing. The platform enables users to accept payments via email and text through customized payment links. Get started today here.