7 Payment Industry Trends in 2022 That Could Impact ISOs
While holiday celebrations surround us, this year’s end means your business is busy wrapping up the quarter.
In 2022, new trends will emerge in the B2B and Fintech spaces — some already existing from pre-COVID times.
The pandemic will continue to have a lasting impact in every industry, and some organizations have made digitally-focused adaptations to increase revenue. Keeping an eye on payment industry trends could save ISOs time and money spent on outdated practices.
Payment Industry Trends 2022
Adapting to changes in the B2B payments space could help your ISO stay on top of your industry’s market. Although not every trend will be relevant, revenue goals based on pre-COVID trends could possibly fall flat.
According to a recent Capgemini study,
“Almost 40% of formal micro, small, and medium-sized (MSMEs) … have unmet financing needs totaling USD5.2 trillion every year — equal to 1.4 times current global MSME lending.”
Based on expert insights we’ve uncovered, let’s take a look at these seven emerging and rising fintech trends for 2022:
1. Customer Loyalty and Relationship Building
Product focus is essential, but customers stay with your business over competitors because of customer experience. With the recent shift to remote work, businesses had to move away from face-to-face customer relationship building.
This shift has also revived customer loyalty programs, which are also tried and true for customer retention.
But remember to keep sales and marketing teams aligned to help attract and retain customers with brand cohesion.
2. Fintech Partnerships
Fintech is booming, and you can get more business through partnerships. When partnerships offer payment solution integrations, end-users can get their money faster and more efficiently.
“ … 31% of survey respondents favored collaborating with technology and e-commerce giants to improve payments distribution.” (Capgemini)
Xero – This accounting integration provides users end-to-end invoicing and payment capabilities.
BlueSnap – QuickFee’s payments ecosystem has seen significant growth by partnering with this global payment processing solution.
3. Payroll Fintech
Some companies switch to payroll fintech solutions to offer more options and flexibility in employee benefits.Payroll fintech includes these different types of solutions (with examples included):
- On-demand salary and global payroll (CloudPay)
- Integration with in-house accounts receivables (Tide)
- All-in-one payroll and HR platforms (Gusto)
- Integration with employee engagement (Payactiv)
4. Cross-Border Payments
Sending and receiving payments over borders can get tricky with currency rates, compliance policies, and available technology. With the rise of digital solutions, cross-border payments have made their way into new business practices.
Cross-border payments can be conducted by credit card providers or banks.
5. Real-Time Payments (RTP)
As the name suggests, this digital solution can help make payments instantaneously; in real-time.
With the increasing popularity of contactless and mobile payments, it’s only time that users catch on to RTP for more payment flexibility and 24/7 access to finances.
“The number of mobile wallets in use is on track to reach 4.8 billion by 2025 (up from 2.8 billion in 2020) — nearly 60% of the world’s population.” “ survey respondents found that nearly 45% of consumers use new payment methods such as mobile wallets to make payments, up from 23% in 2020.”
“ … and by 2025, instant payments and e-money payments will account for about 25% of global non-cash transactions, up from 14.5% in 2020.” (Capgemini)
To make real-time payments work, banks connect to RTP networks, which work with technology suppliers.
6. Flexible Payments
Some methods of traditional financing are fading out, such as paper checks.
Paying over a period of time is a great option to attract a wider net of prospective customers, and retain current ones.
Flexible payment options are running parallel to digital transformation — when businesses offer payment plans, financing, and other options, they typically have the opportunity to pay electronically, and with a mobile device.
7. Buy Now, Pay Later (BNPL)
Online buyers have seen BNPL solutions like Affirm, After Pay, and Klarna — but now it exists for B2B payments.
BNPL lets ISOs and customers take one large payment and split it into multiple installments.
Make Goals for B2B Payment Trends in 2022
What do your ISO’s 2022 revenue goals look like? Increased revenue is of course number one, but that’s achieved through:
More customer retention – Building customer relationships helps increase retention and improve customer experiences for new ones.
Increased market share or more exposure – Partnering with other companies and verticals helps expand your prospects and market.
More employee options – Payroll fintech gives employees more freedom in pay and benefits.
International trade – When you partner with international businesses, you’re likely going to run into cross-border payments.
Faster payments – RTP from banks help send and receive payments instantaneously.
More payments from customers – In COVID-induced financial times, payment flexibility is key to helping your current customers and attracting new ones.
Hit your 2022 finance goals with a digital payment solution. Schedule a demo with us.