Why fintech and crypto are transforming business payments

As the world races towards an increasingly cashless world, the business payment space is transforming. There are increasingly innovative ways to conduct transactions and businesses are demanding ever faster and frictionless solutions.

User experience is driving a change that has been accelerated by the global pandemic. But is this surge towards progressively cashless solutions sustainable?

Colin NeilManaging Director UK, Adyen, says the biggest shift in the corporate payments space in the past two years has been driven by Covid. “The pandemic has dramatically accelerated payment trends that were already beginning to develop. Most notably, the transition to online commerce and the move away from cash. But something more important developed as a result.

Neil points out that consumers have become accustomed to seamless customer journeys. The line between the physical store and online is blurring even for the most tech-averse in the shopping experience, he says. “This mass change has forced organizations to create seamless links between their stores, websites and apps, which needs a much more sophisticated payment solution.”

Shanker Ramamurthy, Managing Partner, Global Banking & Financial Markets, IBM Consulting, says the most significant shift in the enterprise payments space over the past decade has been the dramatic shift in focus to real-time: instant movement and settlement of cash and data.

“Real-Time is an initiative the world has in common, and it has huge implications for cash management, cash flow forecasting and cash positioning. Companies should ensure that enterprise resource planning (ERP) platforms, display systems, and reporting systems are up-to-date and equipped with adequate technology to support the technical changes needed to all the systems to adapt to this new world order, as well as the human resources needed for this new era,” he says.

Fintechs embrace change and embrace innovation

Fintechs have embraced disruption, to such an extent that innovations created by new market entrants are dramatically changing the global financial market.

Laurent Descout, CEO and co-founder of the Spanish digital bank Neosays delays caused by outdated processes are costing businesses money – and so businesses are opting for solutions that offer a more instantaneous cross-border process – especially when it comes to cross-border payments.

“When working with traditional banks, opening an international account is a long, difficult and painful process – and the transactions themselves can add extra days. Businesses also lose out on costs. With cross-border payments , many banks not only charge the exchange rate and the exchange margin, they also inflate the overall price.”

Fintechs, however, provide the solution. “They allow companies to create their own international account with a multi-currency IBAN in the name of their organization. As a result, they can manage the company’s cash flow and view transaction history, market data and statistics, all in one place,” Descout points out. “Virtual wallets then facilitate the same-day payment process. Businesses can use them to organize funds and store multiple currencies, ready to execute payments or currency exchange.

Fintech competition in the corporate payments space

But, as more and more solutions are introduced and technology continues to reinvent what is most effective, corporate payment service providers are in a constant race to stay one step ahead of the innovation curve.

Neil explains, “It all comes down to the fact that payments is more than just transaction processing, it’s a strategic driver of the business, both from a customer experience perspective and operationally. There are many ways for a payment partner to help improve an organization – those fintechs that are constantly interacting with merchants and thinking about how they can add value will stay one step ahead.

He says that Adyen is constantly working with its merchants to improve its platform solutions and services, as it is essential to meet customer needs and improve operations so that they are always at the forefront of the market. payment innovation. Providing in-vehicle products is a new trend that is also increasingly in demand.

“Ensuring that our merchants get all possible information and information about their payments is a key priority at this time.

“We also recently announced our expansion beyond payments to create integrated financial products. These products will allow platforms and marketplaces to create tailored financial experiences for their users, such as small business owners or individual sellers. »

New business payment trends after 2022

Because increasing transaction speed and agility is good for business, more companies than ever are recognizing the need to move away from traditional services. Neil says this will be even more important in today’s environment where businesses face greater competition for consumer discretionary spending. “Adyen research shows that UK businesses that connect payment systems across their organization (operations, marketing, sales, etc.) outperform their competitors, adding 4% to their growth. But currently only 21% of UK businesses take this approach,” he points out.

Marie-Anne Francois, Payments from associated partners, IBM Consulting, asserts that utilizing the digital ecosystem is key to advancing the enterprise payments space. “We like to ask the financial institutions and corporate clients we work with, ‘What do you want to be good at? What don’t you want to do anymore? Who can we ask to help you offload these activities? Do you have a plan in place to get there? »

She continues, “Legacy back-end systems have become products that can be replaced by cloud solutions and managed services, freeing up budget and staff to focus on more strategic activities. Real-time cash management, as well as API-driven offerings, can capture incoming and outgoing payments and data, then report the results in real time, before batch processing.

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