The payment processing industry has shifted from traditional cash payments to digital payment methods. More consumers now rely on contactless payments (Mastercard Study. 2020) while technology providers continuously innovate to meet growing demands and an expanding consumer base.
Businesses and consumers are now accustomed to cashless and contactless payments. The use of digital payment methods ensures safety, convenience, and speed, which improves customer satisfaction, drives sales, increases conversion rates as well as customer retention.
As technology evolves, financial tech firms–fintechs–have developed new tools to provide better methods, improved customer experience through speedy transactions, lowered the number of rejected payments, and created seamless payment processes.
From Fintechs to Payment Processing
Fintech companies have brought revolutionary changes in payment processing. Fintechs provide opportunities to improve payment services due to their high technology capabilities through a simplified internal structure.
The traditional methods combined with regulation compliance processes lead to high transaction costs. A fintech’s ability to integrate more effectively with banks means speedier transactions and more flexible fees. Fintechs offer many services at a lower and more affordable price.
Since most fintechs focus only on a specific product or service; this translates to lower operating costs. Sometimes they can even do more than traditional financial institutions.
In addition, fintechs have straightforward tools without the heavy and inconvenient processes and requirements, hence, a better concentration on enhancing customer experiences.
The traditional systems are not helping small and middle-size businesses, which have aided in the rise of fintechs.
Fintechs have greatly taken advantage of new technology for customer service, risk management, and fraud prevention. With fintechs’ focus on new technology, they can respond capably to the customers’ needs with improved efficiency, boosted security, and better transparency.
Technology advancement can greatly transform the payment processing industry and society. With collaborative efforts between traditional players and fintechs, it can provide better opportunities for new products, services, and tools that will benefit all parties.
Reliable Payment Processing Services for Your Business
As an experienced payment processor, First Card Payments cares about clients and always does what is best for you. Whether you are a new business or have been in operation for years, you will receive the same level of quality and excellence because this is their passion.
For 20 years, First Card Payments has built strong relationships with banks and ISOs in order to help clients garner desirable terms in their contracts.
When looking for high-risk merchant account processors, their vast knowledge and experience will prove to be beneficial because the First Card Payments team knows what works best for merchants. First Card Payments only works with the best companies in their relative industries to make sure merchants succeed.
Citation
Mastercard Study Shows Consumers Globally Make the Move to Contactless Payments for Everyday Purchases, Seeking Touch-Free Payment Experiences. (2020, April 29). Mastercard Newsroom.