Digital payment services
Customers are constantly looking for new and easier ways to pay for things from flights, to coffee, to designer shoes; companies are keeping up with demand by discovering alternative solutions for customers to make those easier payments — and businesses to accept those payments, too. Digital payment statistics show that it’s becoming less common for consumers to carry cash, or even traditional debit and credit cards, because they’re increasingly turning to digital payment services.
Digital payment services provide innovative payment technology that is transforming the payments industry — regardless of where customers tend to shop. A digital payment system can include numerous features like using open banking APIs or creating secure virtual cards but, typically, its purpose is to deliver quick and efficient methods for consumers to digitally purchase items or services.
Looking into the future, digital payment services will continue to rise in popularity due to embedded finance becoming the de facto payment option with solutions from PayPal with embedded payments, Affirm and Buy Now Pay Later (BNPL) options, and embedded investments with platforms like Acorns. These businesses, among others, have adapted to meet the ever-evolving needs of their customers and are now used by millions.
Digital payment methods
So, what is the role of a payment system and why is it important for businesses to invest in new payment technology today? A payment system is used to process customer payments and, as new payment methods continue to pop up, businesses who want to remain competitive need to be on the lookout for ways to offer their customers better, more diversified options. If customers want options for contactless payments, virtual wallets, or instant money movement, digital payment services are the providers. The most popular digital payment methods include PayPal and Venmo, but other digital wallets and mobile payment tools are becoming commonplace, too, like Paytm or Apple Pay. Businesses who get stuck using traditional payment methods will lose customers to companies that embrace the digital payments movement.
Additionally, e-commerce payment methods aim to better serve consumers that shop and pay via e-commerce platforms — a method that saw an increase due to the pandemic. As more digital payment methods become available, consumers are increasingly expecting their favorite stores to allow them to use methods like contactless payments or instant money movement. This move towards digital payments is the evolution of technology meeting finance and is important for companies to pay attention to in order to implement effective payment methods.
Digital payments business
A digital payments business can help other businesses implement digital financial solutions like payments, credit, or money movement. While each digital payments business model varies, depending on the specific business in question, their ultimate aim is to provide the tools and resources businesses need to get started with digital payments. This is why many have chosen to start a digital payments business.
However, there are benefits that go beyond the value provided to customers. Using digital payments residual income can be generated through these systems and platforms. For instance, merchants selling through certain e-commerce stores receive a commission for each transaction that is processed through the payment system. This is a great way to increase revenue while offering convenient options to your customers; when you learn about how to make money from digital payments, you see better results.
Also popular is a virtual wallet (or an e wallet) option. An e wallet safely stores its user’s payment information such as credit or debit card numbers and passwords. These are useful as they allow consumers to easily keep track of various payment methods in a secure and centralized location. It’s easier to pull up a digital wallet on your phone and choose the card you need than it is to fumble through multiple physical cards at the grocery store. Digital wallet examples include Apple Pay and Google Pay and are compatible with a number of different payment systems and stores. Their range of use continues to expand as customers become more reliant on their smartphones and digital payment methods.
With Bond, you can manage balances across multiple products such as debit cards, credit cards, and deposit bank accounts. You can also link external accounts and transfer funds to and from those accounts. Having a payment system in place that is able to process various types of digital payments provides tremendous benefit to your existing customers as well as attracting new ones.
Digital payment apps
So, what’s in store for the future of digital payments? They’ll continue to rise in popularity in the coming years and also innovate upon existing technology. There’s no question that tools such as digital payment apps are effective now, but they will be able to do even more in the future — maybe we’ll be able to make payments with our glasses at some point! But by staying abreast of digital payments trends, businesses will always be looking for ways to expand their payment options and should work to incorporate these as they become available.
Also, companies should examine various digital payment examples to get an idea of the digital payment options that are currently on the market and what might be the best fit. Fintech isn’t one size fits all, so ensure that the platform you partner with will not only launch your initial product, but have the capability to grow with you as you add other solutions.
Digital payment industry
One thing digital payment companies need to be aware of is their KYC (Know Your Customer) and KYC (Know Your Business) processes. KYC is the mandatory process of identifying and verifying the client’s identity when opening an account and periodically checking up on them over time; KYB isn’t different from KYC but focuses on identifying businesses and suppliers.
Another thing to keep top of mind is securely gathering customer information and data that will provide accurate insights to your customers — and to your business. By helping your customers understand their financial habits, you’re also able to supply customers with the features and technology they want through the trends you observe through the data.
Bond compiles program data into a series of graphs displayed on a dashboard that documents revenue, active cards, usage, and other key information. It also allows users to prevent, detect, and report suspicious activity when their products are live. Bond’s transaction monitoring software detects when a transaction looks suspicious and then puts users in control of handling the situation. You can keep track of how your product is performing with insights at your fingertips as Bond’s business intelligence tools give users real-time insights on a daily basis.
As the digital payment market continues to grow, the digital payments industry as a whole will see an increase in digital payment usage by both companies and their customers. Keep an eye on the growth around the digital payments market size, too, as digital payments gain popularity.
How digital payments work
Understanding how digital payments work ultimately comes down to knowing that the advantages of digital payments are numerous. With multiple types of payment systems like electronic payment systems (bank transfers, BNPL), mobile payment apps (Venmo, CashApp) and mobile wallets (Apple Pay, Google Pay), each function is to enhance the existing payment system of the business while offering additional payment options…and increasing revenue.
An electronic payment system in e-commerce that helps customers get through the digital checkout line quicker, providing an easier way to enter payment info so they can check out even faster the next time around. Digital payments examples abound and there are a number of ways that businesses can take advantage of the digital payment boom.
Digital payment services at Bond
Bond offers a robust embedded finance solution for any business. Companies that embed financial services into their platforms benefit from new revenue streams like payment processing fees or interchange and, by increasing the value they provide to their customers, it’s a win-win for everyone involved.
Platforms like Bond exist to help businesses use the latest tools and services that the fintech industry has to offer, enabling them to provide a better customer experience. Through Bond, businesses have the same power to launch new products as massive enterprise companies and with Bond’s API platform, users can build their products on a single, secure connection in a fully-featured sandbox.
Bond’s APIs and SDKs allow developers to build financial solutions with just a few lines of code, making it easy to create and manage digital payment apps without a large technical team. By bundling all the capabilities needed into a simple and intuitive experience without third-party integrations or additional vendor contracts, Bond helps avoid spending months evaluating sponsor banks and bespoke banking infrastructure vendors, negotiating arcane contracts, and struggling with incomplete documentation and poorly-designed APIs.
Bond supports multiple digital payment products and plans to continue building more. One example is our credit builder card that helps people track their payments and will increase credit scores through a secured payment made by the cardholder. As communities let us know what they need, Bond will continue to provide inclusive financial solutions.
If you’re interested in exploring how you can add digital payment services into your product offerings with Bond, contact us!