Digital Purchasing in 2022: 4 Prevalent Fintech Trends

The last three years have made a huge difference in the economy and the way people consume overall. So many plans were shifted in a new direction as a response to the circumstances imposed by the pandemic. While in-person consumption was put on hold, everyone was sent running to their devices. When this happened, we saw a rise in e-commerce businesses as a means to conform to the demands of the digital marketplace. This trend is not going anywhere anytime soon and the technology fuelling this sector will see innovations to keep up.

One example of a company that saw a gaping void to fill in this industry is the Swedish Fintech company Klarna. They followed a simple concept of “buy now, pay later” which pertained to the confidence and convenience consumers look for. Their business model allows customers to make online purchases only after they’re sure they’re happy with the product. This should paint the picture of the types of businesses that are emerging from the shift. Klarna is just one example of many companies that have created a unique approach to the e-commerce sector.

This is an era where if a cell service provider goes down, the economy is put on pause. With immense reliance on technology, there will always be cause for concern but there will also be plenty of opportunities for businesses to capitalize on the market. The Fintech industry has done exactly that; they’ve recognized what’s convenient for consumers and what makes them comfortable reaching for their wallets. With knowledge of these triggers, companies are making themselves easily accessible through apps or websites which reduces consumer interest in brick-and-mortar businesses.

Now what must be considered is that this business model still has a long way to go from 2022 before it can be relied on as a regular form of banking. This is largely due to the frequency and severity of fraud and cyberattacks on digital banks. This issue derails a lot of the progress of the Fintech industry and is certainly something that developers will continue to fight against. However, once these companies get the bugs out and find a more permanent solution, the industry will be able to reach unimagined heights. 

Digital payment processing trends are still new to society, though it is something people have reacted to incredibly well. At this point, the reliance on the sector is building, so let’s look at the trends to watch for shortly:

GaaS (Games as a Service)

The global gaming market is worth over $200 billion and is forecasted to double within the next twelve years. There are hundreds of millions of players all over the world who live and breathe online gaming. The GaaS model is designed to profit from this large audience through “microtransactions” in free-to-play games. Rather than charging $30-$60 for a game, developers can monetize and make the game a subscription rather than a one-time purchase.

By making it free and slowly introducing purchases to enhance the gaming experience, there is a consistent stream of purchases from each player. There is also constant attention being received from players as they will always want to have the latest and greatest that the game has to offer. As the excitement rises, so does the chance of players looking for upgrades and updates. 

Q-Commerce (Quick Commerce)

How would you like to order something online and receive it within an hour? Half an hour?! Fifteen minutes?!? Don’t get your hopes up, this isn’t referring to your Amazon order of 53 items. The Q-Commerce sector is reserved for small items such as food, medications, self-care items, and others like this. This new model is a game-changer set to revolutionize delivery services and the idea of “delivery” as a whole. If it won’t come within an hour, is it being delivered? Or did you just “order it”?. 

With speed being the draw for consumers (typically in and around 30 minutes), payment providers are under a lot of pressure to make transactions happen as fast as possible. Dark stores are also in a constant battle to provide faster service than the competition or risk losing the customer. This is a Hunger Games-style industry, people will pay more to receive quicker.

Buy Now, Pay Later (BNPL)

Recalling the example of Klarna, many companies are following the same trend to keep up with the aggressive demand for this business model. Consumers are drawn to the BNPL concept for many reasons whether it be budgetary, to avoid fees or interest, or simply not being able to pay for something at the moment. As BNPL services fill this void, it has allowed the market to reach a value of over $5 billion and is estimated to reach somewhere around $40 billion by 2030. Flexibility is everything to consumers today: the more freedom or uniqueness there is with the service, the more likely people are to try it. Everyone wants to believe what they’re using is better than what everyone else is. 

Artificial Intelligence (AI) Processing

AI can be used to examine transaction data and identify irregularities without requiring supervision. This is beneficial for handling mass amounts of payments and data traffic while minimizing the number of errors. With these pattern recognition abilities, AI can track and store data that will allow payment processing to run smoothly and prevent credit card fraud. Companies are benefiting from AI from a security and processing standpoint. As this technology advances, we can expect to see AI playing an even bigger role in digital payment systems down the line.  

What’s Next?

Businesses are taking advantage of these trends and making tremendous strides while creating value in the marketplace. This sector (just like any other business) is extremely competitive. The slightest hint of more convenience will be the deciding factor for consumers of e-commerce. Companies that are succeeding in this sector know this and structure their services around it to be that much better than the competition. 

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!

Hiring The Perfect App Developer

How many times have you said, “there should be an app for this”? Or wanted to tell someone this great concept for an app you came up with? Or more importantly, felt that your job could be a lot easier with the help of an app? A better question would be how many times is there an app for the issue? Or a similar concept? The good news is that it doesn’t matter whether or not there is an app for your specific issue because you are going to make it unique to you or your vision. 

The advancement of technology in the mobile app development space has made it a multi-billion dollar market. This means there is plenty of opportunity and reward to be found in introducing mobile service to your business. Companies today are increasingly reworking their efforts to take advantage of the demand for mobile accessibility. In addition to the convenience of automation, benefits include ease of communication with customers, customer loyalty, brand value, ability to compete with larger-scale businesses, etc.

To employ the perks that come with access to the mobile market, companies need to find the right developer for their app. This can be difficult, especially considering that this is a complex area which will require experts and is going to be an investment for businesses.

Hiring the right developer is no easy process, but here are some staple characteristics to look out for in your search:

Staff vs Freelance

This is the starting point for locating a developer, if your company has an IT team but maybe you want their attention elsewhere then freelance is your best bet. On the other hand, if you trust your team enough to carry out the task then that’s great, but you should still ensure they have the necessary resources. Now, when it comes to a freelance developer, you are paying solely for the work whereas employees have other components.

Credibility

In the same way, you want a financial advisor with good education and a history of success stories. You want an app developer that has an education from a reputable institution and is confident with programming languages such as Java, C++, and HTML. There’s a plethora of concepts and information that an app developer must be familiar with and ideally have a track record which backs up their claims. Bringing in a good developer is the same as any other investment. Before you even reach for your wallet, you want to find someone that stands out to you because you see the potential for something great. 

Creative Skills

Developers are not IT robots, you need someone who is creative and understands the vision for your organization. They need to be flexible and not confined to a standard process that acts as a copy-paste method for every client of theirs. This leads to the most important characteristic which is making sure they listen to your goals, concerns, and current methods, and come up with a custom plan. A good app developer should be able to assess your situation and immediately begin coming up with an action plan. 

Timeline

A sure tell that a developer is going to give your business the highest ROI is by outlining what they want to achieve and when they want to have achieved it. This should look something like the first 2-3 weeks - planning stage, next 2 weeks - analysis, 6 weeks of designing and pre-development, 4 weeks of UI (User Interface) design, and 9-10 weeks of development. Please note that this timeline is a rough estimate and every project will vary depending on the needs of the organization. Nonetheless, you get the idea, that a good developer will not keep you on your toes waiting for work and will keep you in the loop during the development process. 

Now when it comes to the outcome of the app itself numerous things should be on your checklist. Essentially you want your app to run like a well-oiled machine with everything coordinated to produce the experience you want for your users. Here’s a few key things to look for:

UI (User Interface) /UX (User Experience) 

UI and UX are going to be the bread and butter of your app as this is what is going to deliver the experience to your users. This will of course be dependent on the personality and general theme of your business which you want to be consistent with your app. This is also what is going to allow your app to serve customers with a customized experience. Keep in mind that the average app loses nearly 80% of its users within the first three days of downloading. Why is that? Well, why do you delete an app? Because it’s not satisfying your needs and you rely on apps for their convenience. Companies need both UI and UX design, one without the other is like a car without wheels. 

Compatibility

Of all mobile users in the world, Android users account for 75% and Apple for 25%. So as much as we see others with IOS devices, Android is still the dominant force in the market. The performance of your app should be consistent across all platforms (IOS, Android, and Windows). This is going to require tests and continuing to tweak bugs that the system encounters. Your app should push notifications for updates when necessary as this delivers the customer experience. This will require your team to supervise the response to the app to determine what needs improvement. 

Is It Helpful?

The sure way to tell that your app is something that’s going to benefit the future of your business is by simply understanding its purpose. How does this improve the experience for your users? How does this help your staff? Is it bringing in money? It is these simple questions that are not only going to determine the success of your app but will highlight what works and what doesn’t. 

What’s next? 

App development can make your business excel when done right, today’s market is very mobile-oriented no matter what industry you’re in. Focus on making your services convenient and consistent for every user.

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!

Mistakes Businesses Make When Faced With Uncertainty

Let’s be honest, no matter who you are or what you do, when things are going well it can feel like they’ll never go bad. You’ve made it! The peak of the mountain top! Then you realize that the mountain is a volcano and it’s time to move. This metaphor sounds more like something out of a movie, but any entrepreneur will be able to connect it to experiences they’ve faced. 

When a situation becomes volatile, there is guaranteed to be scenario-building and anxieties that follow. What is specifically important to focus on is the fact that unexpected change and downturns can be discouraging, steering you away from your goals. Additionally, it can lead to making rash decisions that don’t support an optimal future for you or your company. The list of issues is long, and businesses certainly do not want any of the symptoms on it.

So what does someone do here? Is this leading into a cliché “never give up” speech? No, we are talking about fight or flight with your business here. When there’s an inability to continue with current methods because of change, it means the organization needs to make its changes. This is when professionals need to perform and adapt to the situation. If you think about it, every business model stems from a problem that needs solving, but all problems are subject to change.

The most effective tactic in times of uncertainty is to prioritize and execute. This is a straightforward concept used to handle overwhelming situations. The concept involves evaluating what the most pressing issues are, ranking them, and then handling them one by one. By doing this, you avoid the trap of multitasking which tends to result in subpar performance. You also avoid worrying about the things you can’t control while actively working to handle the things you can.

Whether your uncertainty is regarding the economy, consumer interests, internal decisions, or fill-in-the-blank, here are some mistakes to avoid:

“This is how we’ve always done it” 

This is a very toxic statement when it comes to change, take the fallout of Blackberry (then RIM) not moving to touchscreen phones for example. It’s normal, especially as a business owner, to want to stick with the course of action you’ve envisioned. However, a true professional understands that aspects of plans will inevitably change. Realistically, what’s most important is meeting the goal, everything in between is a game of trial and error.

Handling Problems Individually

Remember that companies consist of numerous departments that allow the business to function as a unit. Everyone will have their say when dealing with problems as everyone has things they need to do their jobs effectively. When times of uncertainty are not communicated to the team or if their needs are not taken into account, this starts a domino effect of problems. The same concept must be applied to consumers. If issues are pressing and they will disrupt the production of services, this should never come as a surprise to your clientele.

Ignoring Competitors

When external factors create uncertainty in the market, paying attention to where the industry is focusing efforts is important. Again, the example of Blackberry acting confined to their ways when there’s changing consumer interests is a perfect example. This is not to say companies must copy each other (though they often do), rather, teams should pay attention to the storms facing their industry and find ways to navigate. Of course, organizations can also use competitors as an example of what not to do. Everyone wants to stand out from the majority; the ones who succeed in this never take their eye off what’s going on in their market which leads to the next point.

Ignoring Consumer Behaviour

What your company offers is not one size fits all nor will it ever be. There will always need to be tweaks to products as people’s interests change constantly. Examples can be seen with Coca-Cola. They have a variety of products to tend to people’s interests (eg: lose weight = Coke Zero). Another one worth noting is Taxi services. The game was changed with things like Uber or Lyft which cater to the desires of mobile convenience.

Takeaway

It’s important to realize that there will always be a change in your business, the economy, the political spectrum— you name it. The future has never been and will never be the same as the present. To thrive as a business you must not run in times of uncertainty but rather stand by it and serve as best you can. Uncertainty is present every day, you don’t know what will happen 15 minutes from now! All you can do are the things that you believe are preparing you for what's to come.

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!