To meet market needs and demands, digital payment trends are constantly shifting and growing. What we predicted for the pre-pandemic market no longer applies to the needs of a world still dealing with COVID-19
Fremont, CA: In a constantly changing market, it's critical to stay on top of what's in demand. Therefore, you must constantly keep an eye on the horizon and prepare for what is to come.
Unfortunately, the ever-changing market makes forecasting what will happen in the coming year impossible. However, it is possible to look back over the past year and identify some of the emerging trends and habits that are on track to make a significant impact in 2022.
Intelligent Payments
Smart payments assist in automating the accounts receivable process in the B2B space. They transport vital information as well as payment. This makes it easier for the accounting team to track where the money is coming from and which invoice it is going to.
Smart payment is a growing trend in the B2B space, to the point where it has become a standard aspect of payment in some industries. Its popularity is growing because it makes the entire payment process faster, more efficient, more accurate, and significantly less labor-intensive.
Decentralization of Power
There is a growing movement to shift digital payments away from the current monopoly banks and payment processes.
Previously, the only option for paper checks was an automated clearing house (ACH) transfer. Because it was the only option, ACH was in charge of digital payments. However, there is a growing market of new competition in real-time payments (RTP). These alternatives address some of the fundamental issues with digital payments that most businesses and consumers assumed were standard, such as transaction fees.
Real-Time Payment Options via Direct Digital Transfer
Most consumers use peer-to-peer (P2P) applications such as Venmo and Paypal. They make it simple for anyone to quickly and easily transfer funds from one account to another with little or no fees. The same technology is applied to the P2B and B2B markets. Customers and businesses can use this to transfer money to pay for products or invoices automatically.
More Payment Flexibility
While many businesses prefer a payment method involving a credit or debit card, flexible payment methods are re-entering the market. Flexible payment methods help you grow your customer base by lowering the risk of bad debt.
Discounts for Early Payment
Payment discounts are becoming more popular as suppliers want to be paid faster to improve their cash flow. For example, if a company pays in 10 days rather than 30 or 60 days, they receive a 5 percent discount. This benefits both the supplier and the client because it allows the supplier to improve their cash flow while also making large purchases at a consistent discount.
