Buyers of goods and services have slowly migrated manual processes and legacy exchange of value as they shop, pay bills, make reservations, and move to digital, automated and efficient commerce.
During the pandemic – when the bricks and mortars shut their doors and consumers flocked to the internet and their mobile devices for basic services – the digitization of commerce and in particular the payments industry has shifted into high gear , making half a decade of progress in just one year. time.
In 2021, consumers and buyers of all shapes and sizes have enjoyed, and in some cases have been forced, more flexibility when it comes to where they buy goods and services and how they pay for them.
We’ll see more businesses opening their doors for in-person transactions in 2022. But that doesn’t mean they’ll turn 100% to limited analog or digital payment systems.
Consumers and professional buyers have become accustomed to shopping and buying what they want, where they want and how they want. Sellers want to scale and become more efficient by leveraging multi-media commerce platforms to meet the multidimensional needs of buyers. These are horses that will not return to the stable.
In fact, they will rush to the finish line even faster as the coming year will bring even more digitization to the payments landscape as multi-channel commerce prevails. We are entering the next stage of the race.
Here are five predictions for how payments will continue to evolve in 2022:
Software makes commerce invisible
Twenty years ago, no one could imagine hailing a walk through town without making a phone call, giving directions, or even pulling out their wallet. But Uber has made this unlikely scenario a reality. And it’s a reality we all love.
The key to this frictionless experience is simple software with incredible UX. Buyers and sellers are constantly taking advantage of modern software, digital marketplaces, and mobile and cloud payment solutions. Increasingly, they expect to be able to conduct business and financial transactions wherever they are.
Their experience with Uber – where payments are practically invisible – will spill over into more emerging industries and use cases in 2022, as payments “happen”, driving efficient and effective commerce.
Open ecosystems are the winners
Fintech enablers who only allow their marketplace vendors and software platforms to operate in a single model or medium and offer limited options will fall behind in the digitalization race of 2022.
Likewise, software platforms that only push their marketplace sellers to operate under a single model or in a certain way are just as restrictive. Software platforms need options to meet the needs of consumers and businesses to drive adoption and serve all markets. A myriad of customer journeys will become the norm.
Open and solution-based partners / ecosystems enabling diverse journeys focused on customer experience, optionality and adoption will continue. Software companies and markets have countless types of businesses that they now serve. Open ecosystems are what allow them to do that, and that’s why they will win in 2022.
A new mix of payment methods
Recent research from PricewaterhouseCoopers estimates that cashless payment volumes will grow exponentially over the next four years, reaching $ 1.9 trillion by 2025. choice “at checkout.
Many of these new tenders increase purchasing power, a benefit for both buyer and seller. They also allow easier or more secure trading and even increased rewards or value.
Many businesses in the United States require the customer to press a sales terminal or pay on their phone via biometrics. New alternative payment offerings are evolving rapidly, including BNPL options – one of the hottest categories of 2021.
Not all retailers will accept crypto payments, but some will, especially those whose buyers prefer crypto offers. Leaders will allow their sellers to present payment offers requested by buyers.
The fintech assault
If you are running a small or medium-sized business, the bank was once your go-to for anything business related. Those days are long gone. FinTech companies are delivering financial services in new and different ways, and the coming year will be characterized by even more innovation. Banking services of all types are offered outside of traditional banking channels.
Traditional banks have their work cut out for them as the onslaught of fintechs will not abate in 2022: the industry must prepare for the battle and reimagine what deposits, loans and even account balances look like over the years. future.
How can banks and other traditional institutions participate in new economies and remain competitive by taking advantage of partnerships and their cost of capital? The “banking point” will move away from traditional financial institutions even more quickly, unless banks can quickly enter the world of experience and meet businesses and consumers where they seek services.
Mergers and acquisitions frenzy
Mergers and acquisitions are on the rise in the payments industry. This became particularly visible in 2020, when a series of “mega-deals” made headlines.
In 2021, we saw a wave of new state-owned companies bragging about a future of growth. As the new year dawns, interest rates, although rising, remain low and many incumbents will need to expand their capabilities and reach in the market to continue to grow.
At the same time, venture capital and fintech private equity firms have more liquidity than at any time in history that they will be forced to deploy. With so much complexity and so many moving parts in commerce today, we can expect to see much of this investment capital – both public and private – used to help organizations join forces to keep a step ahead.
The payments landscape will see a lot of action in 2022, with software making commerce increasingly invisible across a range of industries, new forms of tendering increasingly important, open ecosystems gaining even more. competitive advantage, more regulations to come, more growth of fintech companies, mergers between solution providers and leading players and more options created regarding how, where and when consumers pay for the goods and services they want.
Businesses across the spectrum will continue to race to serve customers who expect no friction, no learning curve, and virtually limitless choice.
The winners in 2022 will be companies that not only give buyers and sellers the options they ask for, but make those choices intuitive and easy for them.