Innovative Technology in the Finance Industry 2021
- January 11, 2021
- Written by : Carl Eschenburg
Many technological changes have occurred within the last year, 2020, especially in the retail and finance industry.
Thousands of shoppers have begun to shop mostly online with skyrocketing sales seen in companies like HelloFresh, a healthy food delivery service, and Amazon. In addition, thousands of business owners are learning how to adapt and offer varying products and services as well as varying ways to obtain or purchase those products and services such as offering mobile payments or developing an online store to replace or enhance their current physical location.
As we move into 2021, business owners should feel educated, empowered, and prepared to take on whatever innovative technology comes their way.
The one thing we are confident that will affect all businesses of every shape and size? Changes in the finance industry.
Hereâ€™s a list of innovative technology that will influence your business and its growth:
Growing Number of Mobile Payment Options
According to Statista, mobile payments are becoming a must-have as a business owner; here are a few impactful statistics mentioned that can (or already has) influenced your business:
- 41.8% mobile wallets in total U.S. e-commerce transaction volume
- PayPal was the most used online payment service in the U.S. in 2020
- 64 million consumers are mobile payment users in the U.S.
- The global number of contactless payment users increased to 760 million in 2020
Between Apple Pay, PayPal, and Venmo, mobile transactions have surpassed expectations. If your business is not already offering one of the following payment options, it would be wise to adopt one sooner rather than later. Customers are seeking convenience, speed, and accessibility; all of which can be provided through mobile payments.
Rise in Cryptocurrency
Itâ€™s no surprise that cryptocurrency has been included here; it is the beginning of the end for paper money and coins. Not only is this a way to buy goods and services through online transactions, it is also an enabler for trading for profit.
According to Wall Street, â€œcryptocurrency is changing the financial face of businesses and even individuals. It is the revolution in the way we perform transactions, invest and raise capital. Moreover, it is replacing the need for physical money, and in some cases, it is replacing the need for banks and high-interest loans.â€
Whether you, as a business owner, are considering investing in cryptocurrency, or are researching ways in which it could benefit you to implement such a new digital money system in your payment and processing for your consumers, you have over 1,000 options to choose from ranging Bitcoin to Ripple. Other than this, if youâ€™d like to know more about the advantages and disadvantages of this, visit our blog here.
Embedded finance allows a customer to pay on their own terms, where and when he or she pleases. This way of payments is currently replacing the need to visit a bank, keep cash, or be inconvenienced at the time of purchase.
â€œEmbedded finance, also called embedded banking, refers to the seamless joining of traditional financial services, such as payment processing, with another service. It is the integration of a financial service into a non-financial app or website. When a customer pays for a ride-share at the end of the ride directly in the ride-share companyâ€™s app. Then, they are using embedded banking. They do not need to fumble with cash or hand their payment card to the driver,â€ explains writer Scott Raspa of Finextra.
If you havenâ€™t already, itâ€™s time to hop on board with these emerging and revolutionizing trends in the finance industry. 2021 will be a year of optimization, adaption, and innovation; stay ahead while you can.
We offer financial advice and support to business owners seeking funding, or those who want to feel more prepared, confident, and up-to-date in the industry. Also, weâ€™re a team of experts and are ready to take on the new year with you. If youâ€™re ready to jump into the trends, weâ€™ll jump with you; reach out today.