Future of Payments in fintech in the year 2021

What does the future hold for payments?

Honestly, no one knows, but there is enough information to make general predictions have:

1. Companies of all sizes will need to focus on “users”, not shareholders, to be successful.

2. Large businesses have the advantage: the choice to use or not depends on it.

3. There will be a consolidation of services over time.

Users> Shareholders, Finally

Let’s talk about the need to focus on ‘users’.

By “User” I want to emphasize that a consumer not only wants to buy something, but also a business or individual who wants to sell something. Maybe even friends trying to move money back and forth.

It is becoming increasingly clear that large payment companies have been competing with each other for decades, often leading to small resources or price competition and a constant focus on financial results to keep shareholders happy. Well, I do not suggest that the search for maximum shareholder value is wrong or that there has been no progress.

On the contrary, I think we need to maximize the long-term value for shareholders and we have come a long way with paper statements or environmental footprint statements. For true growth and innovation, however, we should not focus on business alignment and efficiency goals to promote quarterly earnings growth, but to provide users with a fantastic experience to keep growing in the long run.

This also applies to smaller companies. Take PayPal and Square, for example (this is a topic for most of this discussion, as it follows some important guidelines).

Despite the generally bad user experience, PayPal is an innovative benefit for customers. This has made it easier for consumers to pay online, with two simple pieces of information in place of card numbers, expiration dates, billing addresses, and more.

It also enabled customers to use the cards and bills they already had just as easily. By adding the ease of integration for e-commerce website creators, you have taken the first steps in the right direction. Sure, it’s a bit outdated and is now seen as an older and less advanced way to solve the problem, but the basics are still being addressed.

Advantage: sit down

Because large payment companies have the advantage of losing

As mentioned above, large payment companies are clearly losing something in one way or another and are less likely to ignore these issues as fickle ‘long-term’ customers. PayPal and Square are other excellent example of innovation that can be easily created and implemented in a large organization.

Square adds a hardware aspect that is less than normal, but not impossible to (re) create, given the budget of the payment giants. Other than that, it’s just smaller than regular sellers and gives them a great experience. With the press around the biggest players, adoption and growth rates can easily double and repeat with more resources to support businesses at all levels.

Future sector consolidation

the rapid explosion of small startups is necessary to make this industry an easier and more enjoyable experience for the people in the trenches – the users – to make clear that the status quo was out of order. That said, I can not imagine that this expansion will last longer. I already have 11 different applications that handle payments on my phone, and I was very demanding on each one.

At some point, specialized niches will be highly optimized for simplicity and an excellent user experience, and all other types of payment transactions will have a separate service (or 4).

If this happens, or preferably before, the value will create an established focal point that will compete on an equal footing with each of these separate services or find a way to leverage its value with an extensive platform level. We again see the clear value of a market leader in space, as well as a user-oriented vision, where design and user experience are central.

Translate »