A few years ago, a well-known brand and a reliable customer base were key indicators of the strength of a payment company. But relying on these alone has put many established players in a difficult position over the past 18 months. Instead, the COVID-19 epidemic is extremely digital, especially one of the buyer’s new realities: the ability to quickly adapt and adapt to needs and adapt to side-by-side ecosystems. .
At the time of the outbreak, the consumer demand curve changed almost overnight online, but this supply was not fully prepared for this radical change. By quickly resolving the real, urgent disease points, Fintech creators such as Shopify, Kare, Instacart and Patreon were able to gain market share, regardless of their size and relevance. They quickly ousted those in power and established a strong loyalty to their newly acquired consumer base – they are now earning more money by extending their sacrifices beyond their original nest. Square, for example, has become a major player in fast-paced market shifts to increase the user base of the cash app. PayPal did the same thing with the Venmo app and actually tripled the profits during the epidemic.
For older providers, this means one of two options: either digital-initiated platforms to accelerate their transformation significantly or go down to their customers ‘devices’ Unused Applications section. With a sense of survival, we have seen old banks and payment companies increase their creativity over the decades as digital payments have become the fastest growing in history.
Even central banks and government officials are aware of their urgent need to change their market infrastructure – usually in the face of many setbacks, centralized systems can further support global trade and commerce into open and divided networks. Accelerated real-time payment schemes, unrelated payments, and the growing focus on digital currencies are examples of the urgency with which governments are moving toward a digital-first approach to money.
In less than 18 months, we have seen many parts of the payment and business value chains unloaded quickly and rebuilt — otherwise it will take at least a decade.
The rules of the game have changed as our focus, loyalty, and money accelerate. Digital is no longer a channel (like digital in our physical), but it is the basis of individual payments, transactions and transactions. And, in the digital-born economy, many lines between business, payments, money and banking are blurring.
New and fundamentally different business models are emerging supported by digital payments
Self-contained, flexible business platforms
Using technology to flexibly adapt demand and ecosystem systems, platform businesses are typically finding unique ways to enter highly integrated markets. It could be any of the best products (components side) available from the new generation of online creator network supply chain networks. And with mind-altering marketing strategies, demand can be created through multiple channels, from social media platforms to mobile wallets, to physical locations, to smart devices such as vehicles and refrigerators. Payment providers are rapidly setting up their offerings to capture and activate this trend by placing themselves in a fast-growing trading ecosystem.
Autonomous Financial Supply Chain Networks
The epidemic has exposed major errors in the supply chain management. Small businesses, especially the weak link of most supply chains, have been severely affected. Combined with new technologies (such as blockchain and IoT), a combination of new financial and capital sources (beyond traditional banks) is creating a new generation of connected, intelligent supply chain networks that create and distribute value more efficiently. Participants. Resilience, flexibility, work capital, visibility, efficiency, compliance – and even ESG are now integrated into the supply chain itself.
D-Central, programmable, digital-native currency
There are several reasons for this shift. First, global trade and commerce is growing rapidly, everywhere and digitally: it seeks new strategies in real-time, all-time, unlimited payment networks. Second, human rights, such as privacy and self-government, are expanding every aspect of our daily lives, setting new standards for the ways in which we create, store, and transfer values. Third, the acceptance of crypto currencies by both consumers and institutional investors is fueling demand for digital currency. And fourth, there is an accelerated focus on digitalisation and tracking of money supply through the central bank and FIAT-supported digital currencies: platformizeAnd strengthen the country’s infrastructure for the digital-first economy.
Included, personalized offerings supported by secure digital identity
When all aspects of our lives are digitally activated, the various dimensions of our existence are intertwined. Financial security, healthcare, business, education, productivity, etc. are all linked to the complex data ecosystem around us and our families. Value shifts from individual products or channels to the best, all-channel ecosystems where you can customize and manage integrated seed solutions and integrated personal experiences — all of which guarantee our privacy, freedom and overall safety.
Entrepreneurship Business Networks
We are seeing a big transition to ‘formalism’ and ‘everything as a service’. In the midst of the gig economy, public support, cloud computing, artificial intelligence and low-level platforms, cultural barriers to entrepreneurship are disappearing.
Think of an Amazon FBA entrepreneur
[For reference, Fulfillment by Amazon is a service for third-party sellers to automate their order fulfillment and shipping services. Anyone enrolled in Amazon FBA can let Amazon handle all shipping, including returns and refunds, as well as product warehousing in Amazon’s warehouses, picking and packing, etc.]
Anyone can be an FBA entrepreneur overnight. Entering flexible and easily accessible talent and supply chain networks, entrepreneurs can design, create and create new products, which they offer to Amazon, the world’s leading end-to-end provider. Entrepreneurs can focus on becoming the number one seller in their category without having to deal with complex business management aspects such as collections, fees, logistics, etc.
Successful FBA entrepreneurs are growing their supply chains to jump beyond the Amazon ecosystem and join other markets like Walmart. And, when the business is adequate, they select FBA value chain components such as shipping or payment processing and transfer them to other providers at attractive prices or better features.
New technologies as strategic facilitators
Technologies such as cloud, AI, and blockchain and digital play a fundamental role in making businesses an orchestra that can be transformed from a producer of products and services into an ecosystem of demand and supply.
A strong cloud base is essential to achieve scalable economies and reduce market time. Among other things, it allows cloud businesses to use only the services they need at any time, automatically measure fashion, and add security, automation, and compliance to each code line. This moves the unit unit economics, which is crucial for payments and business models.
Advances in AI are turning the creative model on its head. Typically, product designers come up with hypotheses, then test them, and then build products based on the results. With the use of modern AI, forums can generate insights from relevant live data, which can be used to organize and launch new ideas. By focusing on large data sets (including up-to-date information such as the exact weather conditions in a given zip code or traffic patterns outside the user’s home), you can create the most personalized moments that will enable Ii-enabled platforms from large crosses. Sell prices and accelerated consumption. Just last year, the number of friendly and small-scale Fintech offerings demonstrated the power of these technologies. The AI also fully visualizes every aspect of the business and the life cycle of the transaction in real-time, enabling the most dynamic compliance and risk management needed for rapid deployment.
In addition, it encourages payment and trading ‘API-feature’ providers to access users and distribute services to them through an unlimited set of channels. This means that the services are always available when and where customers want them, no matter where they choose to interact. This reduces the amount of ownership and digital real estate and allows brands and suppliers to be ‘all-inclusive’ and consistently relevant.
Finally, blockchain and blockchain-related technologies continue to show centralized power by creating and deploying more autonomous global networks. Concepts such as ‘money as software’ and ‘programmatic money’ give birth to disturbing ideas in almost every industry: from automated insurance claims, to carbon track and tracking solutions, to interconnected multi-level supply chains.
There is no such thing as a free ride
Accelerated payment, trade and commerce changes do not come with risks.
Cyber security. While many aspects of our payments and business lives are digital, Fintech is a major target for cybercriminals. Network security, data breaches or even service failure attacks can cause irreparable customer and brand damage.
Customer experience. As all types of companies look to integrate payments and financial services into their flows, a new set of trading systems emerges and with them many potential points in the customer experience.
Rule. Take credit card space as an example: Dodge Frank and the credit card law have previously created a regulatory environment for banking as a service provider (Bancrop) to create value-added judicial opportunities. Today, many Fintech Unicorns — actually trusted by these banks as providers — are far more valuable than high-end banks. This raises basic control questions. For example, should a $ 10 billion Fintech be treated as a software company, a local credit union, or a regional bank exchange and other regulations? Lack of transparency in regulation of digital currencies and asset compensation and global consistency forces creators to tread carefully (and as a result gradually) or take the necessary risks without fully understanding the underlying issues.
Digital Transformation Limbos. With many older enterprises accelerating the transition to digital, finding the speed of escape in transformation can be challenging. Without a strong strategy, strong architecture and flawless transformation, old applications and practices can be difficult obstacles to overcome.
The road ahead
Experiences are made and broken in times of crisis, and the COVID-19 outbreak was no different. Basic changes in consumer behavior, attitudes, and payments will not only last, but will continue to accelerate. For payment companies, the successful adoption of new technologies to disrupt and re-invent business designs marks the difference between the next wave of winners and losers.