5 Big Trends That Will Disrupt the Way the World Pays

SMEs will drive the transformation of global payments. The ability to do things from anywhere, at any time, is highly valued in the new world, particularly regarding payments. In this context, India represents a massive opportunity in every aspect of consumer business.

• BNPLs will evolve into credit brokers: The Buy Now Pay Later (BNPL) models, which have taken off all over the world, are doing well in India because they are targeting the younger generation, who are willing to experiment with credit, including innovative products, cryptocurrency and even entrepreneurial ideas on a global canvas.
• SMEs will drive frictionless global payments: SMEs account for 90% of international businesses and 50% of global employment. Ergo, the SMEs-driven transformation of global payments, along with the development of remittance platforms to streamline payment processes, will reduce operational overheads and remain competitive.
• Travel industry will accelerate payment innovation: India, which still has a large percentage of cash usage, is likely to lead travel innovation. The credit goes to our youth-heavy population and rising levels of disposable income. As a result, travel cards will play a significant role for Indian users. They will become part of an electronic wallet and can be used in the same way as any other financial card eliminating the need to carry cash.
• Crypto acquisition of FinTech will put them ahead of the competition: Cryptocurrency remains a highly divisive topic, with many central banks worldwide remaining sceptical. The RBI is assessing this from Indias perspective. However, market forces are exerting additional pressure. The fact that cryptocurrency is frequently confused with Blockchain technology and that abstract forms of money are here to stay could be two major reasons.
• Hundreds of small FinTech will be swallowed by bigger players: During the pandemic, the trend of using the FinTech ecosystem as a supermarket has been sustained. As a result, the FinTech landscape is oversaturated, and small entrepreneurs must be truly differentiated to attract the attention of a prominent investor. If they arent, they should consider merging with a market leader.

To conclude, consolidation is a natural progression for every industry; this will help fill gaps in their tech stacks, expand their product set and have a window to newer customers.