Social media platforms are actively integrating various payment tools, eCommerce websites are incorporating simple accounting systems, and rental apps are linking loan and insurance services. FinTech is one of the key themes of the new decade, owing in large part to the expansion of the FinTech-as-a-Service market.
This trend is superimposed on another global trend – the desire for collaboration, which is replacing fierce competition.
But still, why does a business need FinTech products apart from following trends and how to integrate them? Find the answers in our article.
FinTech is the new normal
Open platforms, the business model of which is based on providing resources and opportunities for other players, are becoming a driver for the active implementation of FinTech. FinTech companies like Itexus are getting in on the action as well, building tools for companies to help them launch and scale faster. As a result, businesses – including small firms and start-ups – get new resources and distribution channels. And the FinTech platform is expanding into new markets, gaining new customers, and providing more and more relevant goods.
The range of such collaborations is fairly broad. These include white label solutions as well as numerous BaaS and IaaS technologies – the so-called “invisible” interaction that helps industries collaborate to provide services through end-to-end product networks.
FinTech as a service: when is it useful?
The client journey might be disrupted, and certain buyers may be lost at various points of the sales funnel. FinTech solutions serve to smooth these seams: for a test drive of pricey household goods, for example, the customer doesn’t need to come to the office and sign anything, and the seller may not retain cash. The interface and registration procedure for the test period will be as straightforward as the purchase, and the money will be refunded only if the buyer enjoys the product.
The business audience will increase at some time, or you will need to develop relevant capabilities. Then it is critical to maintaining the pace of all processes, particularly payment processing. Technological tools will aid in this and make scaling very inexpensive.
In today’s market, a speedy start is critical: minimizing time-to-market, or the period between conceiving a concept and hitting the market, affects a company’s success. Sometimes it’s not just about success, it’s about survival: according to Gartner, around 20% of “late” products never achieve their objectives.
How to integrate FinTech solutions?
#1. Splitting allows you to transfer money automatically across merchants in a single window. This contributes to the optimization of the unit economy, the simplification of accounting labor, and the automation of document flow. Suitable for markets, aggregators, and businesses having several legal entities, such as franchises.
#2. Loyalty programs: Customers are more inclined to pay for goods online, follow the brand, and continue to buy from it if the payment process is “spiced up” with cashback, incentives, and other components of loyalty programs.
#3. Lending: The delayed payment technique is more of a convenience service than a solution in the event of a cash crisis. As a result, the end-user benefits from better terms and a new payment experience, while the vendor benefits from increased conversion, purchase volume, and average check.
#4. Acceptance of payments from legal entities: FinTech services will also help businesses avoid issues when it comes to B2B payments; with their assistance, a company will be able to take online payments from corporate clients and partners just as simply as from individuals. This will boost payment conversion and optimize accounting work.
#5. Online tips: Non-cash tip capability can be beneficial to both offline and online companies, such as caterers, beauty salons, food and grocery delivery services, taxis, and so on. This enables you to inspire personnel while also increasing client loyalty.
The main thing is that FinTech can always adapt to the tasks of a particular business.