Author: Shubhradeep Nandi

disruption fintech payments

Fintech Innovations are disrupting the payments industry

Digital banking innovation has revolutionised the banking and finance industry like never before. You can now interface with financial technology and Distributed Ledger Technology (DLT) to transform your payment technology. DLT is the backbone of fintech innovation as it provides an additional layer of security and aids in easier transactions, unlike traditional methods. DLT is widely known as blockchain technology. Greater security and rapid transactions are feasible with blockchain technology because blockchain technology stores data in distributed blocks across locations. This not only increases the security of digital finance technology but also increases the reliability and traceability of payments made using paytech. This helps in easier detection of scams and money swindling.

Role of Digital Banking Innovation and Fintech Innovation in Other Industries

Digital banking innovation and fintech innovation has not only modernised banking and financial institutions. They have also disrupted any industry dealing with payment technology right from e-commerce to retailers, educational institutions, healthcare providers and any industries that deal with payments. All of them have started incorporating financial technology in their paytech services to enhance their user experience. It also helps in ensuring safer, securer and faster transactions.

Blockchain technology when interfaced with digital finance technology also helps in smarter and quicker execution of an existing contract for payments such as standalone instructions for executing payments and refunds automatically and systematically on time. This helps you to avoid late fees and delay in receiving payments or disruption of services and further loss to your business.

Role of COVID-19 in Payment Technology

Though digital payment technology is in place for many years, it has not been actively and widely used by anyone. There was a sudden surge in usage of paytech with the onset of COVID-19 followed by the lockdown. Digital payment has witnessed an all-time high since the start of the pandemic. This is because people were not allowed to move freely and fear getting infected. Cheers to Corona for the sudden spike in contactless payment through payment technology used in all channels right from Unified Payment Interface (UPI), Peer-2-Peer (P2P) transaction methods, Digital Wallet, Mobile-Point-Of-Sale (mPOS) and Voice Payment. Almost everyone has started using digital finance technology for their various payment requirements such as money transfer between their account, to friends and families, businesses, online and offline purchases.

Applications of Financial Technology

Voice Payment

Voice Payment is a digital banking innovation that deploys voice assistants such as Alexa, Siri or Google Home to help you in providing personalised payment solutions through your paytech applications. Voice assistants allow banks, financial institutions, eCommerce companies and fintech companies to understand your customer’s behaviour and requirements. This helps you to provide personalised services to your customers. Voice payments also help your customers to set up payments. Financial technology employs voice recognition, natural language processing, machine learning and artificial intelligence to make Voice Payment highly reliable and secure.

Unified Payment Interface

UPI is a paytech of digital banking innovation that empowers your customers to link their multiple bank accounts under one umbrella. It has many banking functionalities and payment features that aids in seamless fund transfers, utility payments and merchant payments. UPIs have made money transfers instant as a waiting window is not required for money transfers, unlike conventional digital banking. It provides an additional layer of security through two-factor authorisation. It provides your customers with a virtual address that offers incremental security. It enables contactless payment with scan and pay.

Peer-2-Peer (P2P) transaction methods

P2P is a payment technology of fintech innovation that allows person-to-person money transfer instantly over your smartphone using other person’s contact number. These P2P applications have wallet and bank accounts linked, to which you can allow your customers to transfer money from their bank account to another person’s bank account. Like UPI, it also provides a virtual address and scan-and-pay facility that adds safety and security not only to your customer’s bank account but also to them in the time of pandemic by avoiding contracting infection.

Digital Wallet

Digital finance technology-facilitated the developing of digital wallet (eWallet). It can be used as an alternative to a physical wallet. Your customers can store funds in eWallet and use it to make payments to merchants both online and offline. It aids your customers to pay utility bills and allows fund transfer between banks and person. It is safe and secure as it is password enabled. It helps you to track your payments and fund transfers. You can view them from the history of transactions. Your customers can link your digital wallets to their mobile bank applications or any payment platforms. The digital wallet can be interfaced with applications to trade cryptocurrencies.

Mobile-Point-Of-Sale (mPOS)

Financial technology has developed mPOS to be used with smartphones or tablets. The advantage of mPOS is that they can be connected to the cloud using your smartphones or tablets by plugging mPOS into them. mPOS can be linked to traditional transactional peripherals like credit card and debit card machines, scanners and receipt printers. mPOS are quite useful for mobile business owners like cart vendors, service providers like plumbers, electricians, carpenters and other door-step service providers to collect payments through credit and debit cards from their customers that use near-field communication (NFC) to read card details. mPOS also collects transactions details, email address of customers and details of other inventories of business that helps your customers to analyse their business. It also helps them analyse their business performance geography-wise. This helps them to plan further business strategies.

Key Takeaways

Fintech innovations for quick onboarding have taken payment technology to next level to meet your business demands, market demands and customers’ demands for their payment needs. Innovative payment solutions have come with an additional layer of security that protects the interests of you and your customers. It functions at the speed of light to perform transactions to make your customers happy. Delighted customers help in bringing more business to you that increases your rate of conversion. They provide a user-friendly interface that makes it easier to use. It also keeps tracks of all transactions and can be viewed at any time. Fintech innovation harness the advantage of cloud computing to store and transact through the cloud that helps your customer to perform and view their transaction from any device, anywhere and anytime.

About the AuthorShubhradeep Nandi

Shub is the Co-founder & CEO Of PiChain. He is an Entrepreneur passionate about cutting edge technology that makes human lives better. He is on a quest to achieve Sustainable Compliance for 500 Entities by 2025. He has decade-plus years of experience in building and selling software for Finance and Regulatory compliance management. At PiChain Shub provides organizational leadership with his unique combination of business understanding and technical acumen.

Source: PiChain Innovations Pvt Ltd.

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