The payments landscape continues to seek new routes and find new partners around the world. It offers the promise of providing customers with new ways to transfer money for transactions or to each other.
Deltec Bank, “Fintech companies are working with traditional payment providers to launch a series of innovative products and services in this area.” As digital platforms enhance their consumer experience, the idea of having instant, open, and everywhere payments is something that the world wants to embrace.
There Are Several Ways to Pay Today
If you want to pay for goods or services today, the number of methods available to the average consumer is staggering. Even if you only look at mobile wallets for the payment industry, you’ll find large agencies like Samsung, Alibaba, Apple, WeChat, and Google offering services. Several banks have internal payment services that provide similar offerings, such as PayMe from HSBC.
When there are lots of choices available to consumers, innovation levels tend to rise. The trouble with the idea of having payments everywhere is that inconsistent use of mobile wallets, along with a hesitance to adopt them, creates uncertainty from a provider standpoint.
Consumers want discounts or special offers that stretch their money further in exchange for using a service. Different lifestyles require unique needs that can send customers to one provider over another. Some people like the idea of presenting a tangible debit or credit card when purchasing because it helps them stick to their budget.
There are even cash economy consumers who don’t want to use this system.
What Does the Future Hold for Payments Everywhere?
There are some economies where credit cards or cash are no longer welcome when completing a transaction. If you visit mainland China, then WeChat or Alipay have already replaced the traditional method of paying for products or services. Consumers can then take their mobile wallets to other parts of Asia or Europe without trying to replace currency.
According to Deltec Bank, “The benefits of payments everywhere include increased security. Even though some consumers find it easier to lose their mobile device than their purse or wallet, the password protection of the digital asset and the smartphone or tablet can provide better peace of mind.”
That’s not to say that achieving the future is going to be an easy accomplishment. There are new connectivity routes that must receive development to provide fast transactions. The variety of mobile wallet providers also creates a plethora of different experiences that can be confusing or frustrating.
Equinix offers an Interconnection Oriented Architecture strategy that seeks to put all of the payments everywhere components together in meaningful ways. Their framework currently offers 200 data centers in more than 50 markets around the world for consumers to access. That means there is direct connectivity to almost 3,000 IT or cloud-based service providers.
Payments everywhere needs a network where companies, industry experts, consumers, and the Internet must come together to maximize the potential of the digital world. We may not have reached the future yet, but it is coming soon.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.