Six repayment trends to consider in 2021

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This season has been like no other for digital payments. Even while economies found a standstill, consumers pivoted to online purchasing and businesses considered distant delivery and digital acceptance. The pandemic-fuelled adoption of most stuff digital and uncovered distinctive possibilities in consumer and business behaviour. Customers formed completely new habits-employing digital technology for jobs, working at home, and ordering on the web. Listed below are six trends that could condition digital repayments in Bangladesh in 2021.

Mainstream emergence of integrated commerce
In early on 2020, digital took centre-stage as much offline and neighbourhood shops closed and some pivoted to remote delivery. As the economy opened slowly, businesses started implementing latest methods like buying over the internet. With 96 million internet members, a cohort of first-time e-commerce buyers emerged as buyers started depending on stores that have an online presence.

2021 will dsicover further evolution in this behaviour; specifically with ecommerce in Bangladesh expected to touch USD 3 billion by 2023. Integrated commerce won't remain a fad but turn into commonplace with new-years distribution channels and market aggregators inserting themselves in to the value chain. To provide seamless shopping experiences, businesses can be nimbler by concentrating on app-centred potential buyers and a multi-channel technique for consumers shopping on the internet, in-app and in stores. Omni-channel commerce should come old in 2021.

Rise of pay later
Because the lockdown restrictions arrived to place, there's been a 50 percent month-on-month growth in bank cards transactions in Bangladesh-indicating the vast opportunity in credit. The acceleration to digital-first activities changed consumer expectations how and when they pay. With personal and discretionary expenditures plummeting, affordability has become a central theme, leading to businesses and buyers welcoming Buy Nowadays Pay Later (BNPL) alternatives, injecting speed, flexibility and ease in paying. The year ahead will witness the explosion of mass affordability alternatives triggered by BNPL choices offered by merchants, suppliers, marketplaces and, of course, Banks and Fintechs.

Contactless future
This season, in more ways than one, was about "contactless". Persons employed contactless cards and QR code obligations because of safety concerns, resulting in an uptick in contactless obligations in large footfall segments like grocery.

Besides the safety, quickness and capability of contactless cards, the central bank's decision to increase contactless payment restrictions to Tk 5,000 is opportune, as it expands the category of purchases which may be created by tap and pay out mode, apt to be quick service restaurants, dining, fuel, supermarkets and pharmacies, and completely new categories like Transit and Tolls could get contactless. And as persons get familiar with scanning QR codes, buyers can pay in multiple methods without making call at merchant locations.

MSMEs to embrace digitisation
In 2020 MSMEs increasingly adopted digitisation as the entire year drastically altered just how businesses operate-to source supplies, pay employees or accept customer payments. In 2021, small enterprises will continue to search for techniques to stay linked to buyers and leverage digital marketplaces. This can help gain contact with new segments, secure fresh leads, provide 24/7 usage of products and create activities for digital-first customers. Increased digital MSME footprint will open the gates to MSME credit rating going mainstream in 2021.

The cellular phone as an Acceptance Device
This season, many "offline" merchants especially in unorganised retail embraced digitisation and can reap its benefits over the coming years. Further aided by smartphone ubiquity, contactless payments-both QR and NFC led-is set to be the default payment knowledge at point of sales in 2021.

The advent of "Tap to Phone" will enable smaller businesses to enter the digital economy with an application on the existing smartphones, so merchants can accept contactless payments without buying an acceptance terminal. 2021 is likely to see accelerated consumption of contactless payments and Tap to Telephone may be the catalyst. Anticipate a flurry of Fintech and Repayment Facilitators getting into the arena riding off this, in 2021.

No compromise on security
Community Economic Forum's Global Hazards Article 2020 pegs cyber-attacks to garner info/money amongst the very best risks that companies are likely to face in approaching years. As businesses and consumers adopt digital payments, fraudsters too are getting smarter, putting payment protection back in the spotlight. It will be imperative to consider checkout experience and fraud activities, specifically with Card Not really Present transactions, from the zoom lens of payment protection. Given the change to online-primary offerings, investments in cybersecurity and authentication will take precedence, especially for smaller businesses that aren't as equipped to take care of fraud as big firms. Redoubling business determination to protection will catalyse technology in payment protection. For our nascent digital obligations trip to mature in 2021, a continued give attention to Risk and Cybersecurity to protect customers and keep fraudsters away is an area most of us in the payments market need to be vigilant about.

Source: https://www.thedailystar.net

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