Payment Technology: How Changing Trends Are Evolving the Way You Pay

mobile payments

An area that has seen huge growth and innovation is the digital finance service industry. A report by CB Insights entitled ‘State of Fintech’ revealed that the third quarter of 2021 was the second-highest on record for fintech financing, up by 147 percent year-on-year, and 2022 is looking like more of the same.

Fintech companies’ goals are to drive an accessible and sustainable digital economy for all, particularly across developing nations. Africa’s large unbanked and underbanked population, together with the increase in mobile penetration, creates fertile ground for fintech innovation, providing much-needed economic independence to those outside the formal banking system.

Some of the biggest fintech trends poised to make an impact in the market include:

Mobile money

According to the Global System for Mobile Communications (GSMA), the number of registered mobile money accounts grew by 12.7 percent globally in 2021 to 1.21 billion, with sub-Saharan Africa making up 548 million of those accounts. With mobile subscriber penetration across Africa predicted to increase by four percentage points to hit 615 million by 2025, an upsurge in mobile transacting is certain.

The fastest adopters of mobile payments are small, medium and micro enterprises (SMMEs), which, according to the African Development Bank (AfDB), account for more than 90 percent of businesses and almost 80 percent of employment in Africa. Traditionally dealing only in cash, the ease of use, affordability and accessibility of digital wallets, mobile POS solutions and QR code payments, are changing the way these merchants transact, giving them access to loans, insurance and other vital financial services previously out of their reach.

Taking it further and integrating digital financial services into the messaging experience, chat banking is fast becoming the next big thing, allowing users to do their banking on their favourite chat platform. By combining the ease and enjoyment of messaging apps like WhatsApp with the convenience of online banking, users have a fast and personalised way to manage their finances. Custom software companies, such as Dcyfer, are building more and more integration into businesses in order for them to capitalise on the payment automation and ChatBot revolution.

Cross-border payments

In 2021, remittance inflows in sub-Saharan Africa amounted to over USD$45 billion, a figure which is expected to more than double in the next two years. A large proportion of the technology supporting these cross-border payment systems remains on legacy platforms, but this is set to change this year, thanks to innovations focused on revolutionising the time-consuming, unsecure and expensive remittance industry.

Buy now pay later

The buy now, pay later (BNPL) movement is gaining momentum after kicking off during the COVID-19 economic crisis when companies sought to help customers struggling to pay their bills. This method of deferred payment allows buyers to increase their cash flow and budget more easily by splitting payments into four or six instalments – interest free – and is expected to drive the growth of ecommerce further as more retailers get on board.

See Also

BNPL is predicted to increase by 66.9 percent annually in South Africa, with other African countries closely following suit. Globally, this figure is expected to move from US$176.2 million in 2020 to US$ 1,673.7 million by 2028. With consumer interest being this high, banks are looking to partner with fintechs to help accelerate their technology development and bring BNPL products to the market faster.

If your business is looking at implementing or integrating a payment solution, whether it be through QR codes, blockchain technology, or utilising existing services, the team at Dcyfer can help deliver that to your business. As a custom software developer, Dcyfer can help bring a suitable, safe, and efficient payment solution to make your business a breeze to use.

dcyfer

View Comments (0)

Leave a Reply

Your email address will not be published.

© 2020 WomenStuff.co.za. All Rights Reserved.

WomenStuff is a property of Mashup Media.

Scroll To Top