Innovation has been disrupting how production and marketing activities are being performed across industries. They have made processes more efficient which has directly contributed to fostering growth. Even the financial sector has not been immune to embracing innovation. The emergence of newer innovations has resulted in making payments secure and availing credit more easily available.
Fintech is used to define an industry that integrates financial and technology resources to develop financial solutions for organizations. In recent years, fintech innovations have transformed the way and the speed at which money can change hands. The major benefit of this has been at the consumer end. Making payments for them has become safer and quicker than ever before!
Fintech is a dynamic and growing segment that has to lead to serious disruptions in the Financial Services sector. The global fintech market is projected to reach $330 billion by 2022. A lot of financial software developers from companies like Oxagile are committed to helping organizations to incorporate fintech into their business architecture and take advantage of the benefits.
How Fintech Innovations are helping in making Payments?
The most important factor that one considers before entering into a financial transaction is the safety of their money. With innovations in fintech, the security of payments has been enhanced and the chances of fraud have been minimized. Real-time tracking of money, whether making a domestic payment or transferring money internationally is what brings transparency and ensures the security of customers’ money.
In addition to this, the use of technologies like VPN and firewalls ensure that hackers are not able to gain access to your financial data. Blockchain transactions and other financial instruments using distributed ledgers make it impossible to modify or delete records of payments. Digital recording of the transaction ensures the security of information and also the detection of frauds.
Traditional modes of payment like cash and bank transfers had higher wait times when compared to modern payment options provided by fintech. Newer technologies have made it possible for money to change hands within seconds without compromising the security aspect. To make payments fast, companies are also increasing adopting Artificial Intelligence and Quantum Computing. This helps them to perform complex financial tasks at exceptional speeds, reducing the wait time for their customers.
P2P (Peer-2-Peer) transaction methods offered by Amazon, Google, Apple, and other companies have resulted in almost zero waiting periods. Customers can transfer money simply by scanning a code without worrying about typing the beneficial bank details every time they perform a transaction.
Adoption of Cloud Computing
Almost everything on the internet is being stored or moved to the cloud architecture. Cloud technology makes it easy to access information and also streamlines consumer dedicated activities. The cost of setting up financial architecture reduces considerably by availing cloud computing. This allows companies to transfer the benefit to their customers.
Companies using cloud computing can also scale up their financial payment networks without requiring much effort and resources. Cloud also helps in faster and secure movement of money and personal information.
The use of Touch-ID, Face Recognition, and Voice Commands to perform functions on smartphones has increased over the years. Fintech companies are integrating the payment network of organizations to use these technologies. Customers can use their unique biometric information to quickly make payments without affecting the security.
Each transaction that a customer performs need to be verified by their Touch-ID, Voice Commands, or a Passcode. A secure channel is established for users to execute payments and there is also no need for them to memorize complex login credentials. They can use the biometric credentials to perform the transactions.
Studies suggest that the global cart abandonment rate was 69.57% in 2019. What this means is that 7 in 10 customers add items to their cart but do not complete the purchase. One of the reasons for this is complicated payment processes that require them to enter their banking or payment information to complete the checkout process.
Fintech companies use efficient payment options to reduce the complicated process of entering these details. Most users have access to smartphones that are equipped to perform financial transactions by using alternate payment methods developed by fintech companies. Using these can help companies increase their sales and also improve the experience of their customers.
About the Author
Liza Bradbery is an experienced business writer who has handled a variety of topics, including business management, and enterprise planning, among others. She has vast knowledge on most aspects related to businesses considering her 10+ years in article writing.