FinTech, or financial technology, is heading for new developments in 2022, and it’s crucial for business owners to keep up. After all, 64% of all consumers worldwide have used some type of FinTech platform (33% greater than in 2017).
The growth of Fintech has changed the way people invest and bank. But more importantly, it’s changed how people pay for goods and services.
If you’re overwhelmed this year as a small- to medium-sized business owner and don’t have time to stay on top of Fintech, or just have never thought about Fintech, then it’s time to hire a professional. At my company, Richmond Financial Services, I give expert advice on how to eliminate payment processing costs and make sure all technology in your business is up-to-date. If you have questions or need assistance, call or visit my website.
But first, let’s explore a few B2B Fintech trends to keep a close eye on just in case:
1. AI and Machine Learning Systems
New systems to hit the marketing lately almost always come from AI or machine learning. When these systems are utilized, they can sift through thousands of transactions, analyze payment and determine when and where there are cases of fraud. Imagine being notified immediately instead of having to sift through a bunch of paperwork!
And to top it all off, 80% of fraud specialists who use artificial intelligence believe that it could limit payment fraud or better, stop it from ever happening, according to PYMNTS.
2. The Introduction of Digital Wallets
The normalization of digital wallets means that business owners can keep their private payment information all in one place, instead of having to fumble through their wallets.
Additionally, company employees can more easily adhere to corporate policies because their payment information is ready wherever they go, making reimbursement processes more streamlined.
3. More Focus on B2B Lending
Although new funds can be hard to come by, especially during economically challenging times like the COVID-19 pandemic, B2B businesses are doing better than ever.
Because of this, B2B lending is on the rise with over $910 million combined in funding across several different industries. Having a lending landscape will only make the industry prosper further.
4. One-Time Virtual Cards for B2B Payments
One-time virtual cards are becoming more of the norm for B2B payments for approved purchases. Since this card can only be used for a specific purchase, it reduces the risk of the card falling into the wrong hands.
Plus, creating one-time virtual cards ensures there’s no lag with purchases getting approved and companies being able to complete transactions.
