The Evolution of the Payments Landscape
The Evolution of the Payments Landscape
The banking world as we once knew it, is changing fast. Very fast indeed. VallettaPay is fast adapting to this revolution. The payments industry has ushered in a new age of consumer and technological trends. Fast-moving fintechs and other key technological advances are now reshaping the payment landscape, becoming increasingly competitive.
In the past few years, the financial technology scene has strengthened dramatically. For instance, the pandemic opened the door to a host of new sophisticated business models, which allowed numerous fintech firms to jump the digital bandwagon to meet the demands of the affected population.
As social distancing restrictions were implemented for public safety, customers of all ages swiftly adopted digital, contactless payment methods. The need for solutions in the payment sector is more evident than ever. The trend of being cashless affected the entire world, and while some transitioned quickly, elderly people found it more difficult to adjust.
Modern technologies – such as tap-to-pay, wire transfers, and even cryptocurrencies – have played a significant role in developing the financial system into what it is today.
Contactless Payment Is the Way to Go
Research shows that one key consideration that stands out is that shops that embraced cashless payments saw an increase in sales compared to merchants who did not adapt. This proves that digital transactions are here to stay and will only become more prevalent in the future.
The shift from cash to cashless transactions is most likely the result of a pandemic that affected everyone. Cashless transactions are just getting started, and we’ve only seen the proverbial tip of the iceberg.
Online Banking Has Improved the Banking Industry
Because of the pandemic, many established banks have needed to alter their old structure, or new emerging banks and fintechs would grab their market share. Traditional banks have controlled the fintech industry with minimal progress. It’s about time we see new features. Two such emerging concepts are Neo Banking and Open Banking.
Both open and neo banks are lucrative ways to safeguard your hard-earned money. Their rapid growth in recent years is attributed to their ability to offer new services at appealing prices and rates to consumers. There are two key ways that open banking and neo banking differ from traditional banking, and these are:
- Neo banks are companies in the banking sector that primarily operate online. They don’t have any physical branches and instead provide all their services via mobile applications.
- Open Banking permits banks to access consumer accounts (with their agreement) to collect data to give a more personalised experience.
Thanks to APIs, customers will enjoy a tailored experience with open banking. And, with the advent of open banking, managing several accounts from a single dashboard was never easy.
The payment ecosystem will be much richer in the next few years than it is today. A smooth, worldwide, adaptable, and secure payment system is a need for businesses looking to stay on top of the game in the digital age.
VallettaPay is ready to serve you.
