When we think of major digital transformations, we can say that all sectors of activity are being affected in one way or another, however, one of the biggest changes in the future could be in the financial services industry. Bitcoin and blockchain come to mind immediately, as is artificial intelligence, which helps to provide better services and competitive advantages, with numerous changes that have already occurred and are about to happen. When we talk about payments, the best experience is invisible. The convenience of leaving the wallet at home and not worry about paying for recurring services are key elements to make the shopping experience more uncomplicated. And great strides are already being made in this area.
LATEST B2B PAYMENT TRENDS
Sales by mobile devices account for 37% of all online payments worldwide, and this statistic is even more impressive, where mobile payments already account for more than half of operations, the growth of digital portfolios is expected to intensifying with the arrival of Apple Pay and Android Pay technologies, which should open the doors of the use of digital portfolios in the country in 2017 and beyond. And because it’s a ubiquitous technology, the Smartphone has become a perfect companion to making purchases anytime, anywhere, driving innovation in the payment landscape and eliminating the barrier between sales channels, allowing customers to check out a single touch, be it in stores, online or via apps.
In hand with mobile payment trends, immediate payments are about to crest the horizon of the B2B world. It’s not surprising that the sector has so far resisted immediate clearing and settling of B2B payments, as regulators have a tight grip on those transactions largely through the avenue of ACH and wire transfer rules. But regulators have indicated they are interested in a more nimble and contemporary outlook on payment compliance in the digital age, and software developers are taking note.
This will continue to be a major business priority in 2018, and the reason is very simple: to recognize customer across different sales channels, evolve DSD trends allow purchases with a single click or no button click, and identify fraud attempt, companies need a vision unified customer payment data. And the first step in this direction is to consolidate each step of that process into a unified system, spanning all sales channels. Once this obstacle is overcome, it will allow invisible payments to become more tangible to many companies and certainly one of the biggest investment trends for payment in 2018.
The Rise Of Wearable Devices
In the world of mobile payments, smart phones are firmly ahead. However, the advancement of wearable devices could change that soon, given that the market is expected to reach $34 billion by 2020. Many wearable devices currently rely on health and fitness tracking devices. However, manufacturers are working on incorporating additional features (such as payment functionality) to make them an essential everyday item. Given that they are readily available and do not require stirring bags and pockets, wearable devices offer a real difference with respect to smart phones, so it will be interested to see how they develop in the coming years.
“Today, consumers believe that payment will be primarily through mobile devices, and it will be easier to make any kind of payment. The future promises great changes in technology and in the connected world, for this reason, we must be ready for what comes and pay due attention to the issue of security. As mobile DSD processing improves, it becomes apparent that simplicity and convenience are not enough. Consumers want added value, and so certain mobile apps, like Starbucks with their loyalty system, have done so well. With a 2020 forecast of more than 3 billion loyalty cards in mobile applications, this trend is likely to continue. By 2020, consumers can expect much more. By recording past behavior and intelligently deploying user data, consumers could receive smart recommendation. And with the addition of augment reality, consumer could analyze product information and read reviews in real time, rather than having to research at home.
Payment Systems For Retail Chains
The key is that direct store delivery solutions and DSD trends processed through this application are managed through current accounts and not through card, there saving the commission that, otherwise, would have to pay to banking institutions for each transaction.
New And Evolving Financial Technology Players
Banking, payment technology businesses and service providers are increasingly partnering to enhance the reporting, reconciliation and automation of various parts of their procure-to-pay processes. This approach is enhancing core payment and financial capabilities and embedding digital payment as part of the business workflow to improve efficiency, business intelligence, innovation and decision-making.
The Evolution Of Cards
Card-based payment have evolved to become comprehensive digital payment and reporting solutions that are often integrated with financial systems for additional automation benefits. Corporate cards have typically been used as a tool to manage employee expenses, eliminating the need for invoicing, reconciliation and cheque-based payment for travel and entertainment expenses and replacing petty cash for low-value consumable segments.
The Shift From Manual To Electronic Processes
Regardless of the underlying payment mechanism, most organizations have, or are moving towards, automating their procure-to-pay processes, moving away from a physical card to digital solution and payment platform. Most organizations have, or are transitioning to, tracking and managing purchases electronically from procurement through to payment settlement and DSD software. Buyers also indicated a willingness to pass on part of the cost benefit to their suppliers in the form of early payment and settlement of invoices, in return for end-to-end procurement process transparency and efficiencies.
Pre-set discount agreement for early paying of invoices has long been a standard feature of mobile DSD solutions, but not always to the benefit of small business owners. larger enterprises haven’t hesitated to throw their weight around and demand fixed discounts from smaller businesses, shutting off a potentially powerful tool for micromanaging your revenue streams in the short term. In contrast to fixed discount regimes, dynamic discounts will allow you to tweak invoice discounts in real time. Such fine-tuning through DSD software would allow you to encourage prompt payment of smaller invoices for a quick cash injection, while avoiding taking a percentage hit on your larger receivable. Looking ahead, nimble flexibility is the name of the game for B2B payments. From mobile invoicing to instant receivables, you’ll soon have a whole new spectrum of payment options for optimizing your small business procedures.
Conclusion, the report found a significant shift away from traditional usage, with more organization realizing the potential of digital payment and reporting solution for a range of B2B payments. Sixty one percent of suppliers reported spending less effort in chasing payments, 60% claimed better customer relationship, and 51% reported improved reconciliation.