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The Pandemics Impact On The Digitisation Of The Payments Industry
The recent pandemic has accelerated the digitisation of the payments sector at undeniable speeds. Retailers are having to adapt to the ever-changing business environment as well as the high expectations of the public. Consumers are now more health conscious and they want more hygienic payment solutions. Contactless payments usage in the UK shot up by 12% in 2020, and accounted for 27% of all payments made in the country. This figure is only likely to rise even further with 83% of UK adults now using contactless solutions.
With this change in demand, the payment industry has been trying its hardest to come up with innovative technological solutions that can improve experiences for businesses and consumers. We thought it would a good time to look at some of the trends the industry is backing. Below we set out our top 5 payment trends for this year, and explained how your business can keep on top of them.
1. Buy Now Pay Later (BNPL)
2. SME-Driven Market
During the Covid-19 pandemic there was a big push from community leaders to get people to shop at small businesses in order to help them survive. Government led initiatives such as ‘Eat out to help out’ helped increase footfall to small businesses and encouraged consumers to try out local businesses. This trend will likely continue in the near future with consumers looking to increase their spending at small local businesses. Research shows currently 70% of UK consumers are willing to spend 10% more from an independent or local provider rather than a larger cooperation. This will create many opportunities for small businesses to increase their market growth. It is also predicted that fintech companies will target small businesses in 2022 and beyond by providing slick technology-based payment solutions which can be utilised.
Since its inception, BMS has been championing small businesses and helped many small businesses grow to their full potential. We provide state of the art payment solutions which can transform your business. Luckily we have a blog that addresses the importance of how important local businesses are to the local economy!
If you would like to know more on how we can help you, send us a message and our team will be delighted to speak to you.
3. Digital Wallets
4. Pay By Link
Pay by link has the potential to transform certain industries. It is simply a secure way for a merchant to collect an invoice. All they have to do is generate a unique payment link through their payment service provider then send it to the customer. These links are usually sent via email or SMS messages. The customer can then use this link to pay the whole invoice straight away. This method minimises the risk of chargeback for merchants and makes sure they get paid without any hassle. Pay by link will especially be useful in sectors like hospitality as many services like hotels take pre bookings. However, this technology still needs to be ironed out and the use of it has been low so far, although it is expected to grow by over 20% by the year 2027.
5. Stronger Security
It is paramount that businesses use safe and secure methods of payment transactions in order to protect themselves and consumers from fraud. There has been a trend of more sophisticated scams that have targeted consumers, banks and businesses. In 2020 alone, there was a total of £783 million that was lost across businesses due to payment fraud. In order to combat this, banks and financial institutions have tried to come up with innovative and technology driven solutions such as two factor authentication and biometric authentication. These efforts have so far been largely successful at curbing the increased efforts of fraud with banks and card companies saying they have managed to stop £1.6 billion in unauthorised fraud.
BMS can help your business take measures which can increase your security. We can provide you with a PCI compliance manager that will make sure your business is fully secure. We will also make sure your business is fully PCI compliant which will mean you avoid any non-compliant penalty fees. If you’d like to learn more about PCI Compliance, please read our PCI Compliance blog.
Book a 1-2-1 Consultation today with one of our Account Managers and see how we can help your business thrive!
So... What Are You Waiting For?
We want to ensure that your business is running to its highest potential. BMS can help you establish a simple financial process, to positively promote your business cash flow, alongside 24/7 help and other financial products.
So, what’s stopping you? Contact us today to improve your business and see how much you can save!
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