Several changes are coming for major credit card companies in the next few months. Many of these changes are more dramatic than usual as the nation attempts to bounce back from the economic devastation caused by the COVID-19 pandemic. Business owners and industry leaders should be aware of these changes and how they’ll impact their livelihoods.
Below is a list of updates you should be aware of:
Consumers will have greater access to credit
Consumers will have greater access to credit cards and personal loans through the first half of 2021 compared to the onset of the global pandemic in 2020. This means that the dramatic lending slow down in the second half of 2020 will rebound in Q2 of 2021, according to TransUnion’s annual consumer credit forecast.
This is generally good news because consumers will be able to fund big-ticket items at a low-interest rate. Since interest rates are low and financial confidence is increasing nationwide, hopefully, business owners are ready to invest in financial technology in the B2B space as well.
Increased transparency
Transparency is essential for credit card companies in 2021. This transparency means fewer hidden fees, complimentary credit scores, and more.
In this new digital age, as we transition to contactless payments, the conversation about biometric technology is on the rise. Biometric finger technology allows consumers to make touchless payments via a fingerprint stored on a credit card. Fingerprints are safe and unique to every individual.
The most important question has yet to be answered, though. How does biometric technology impact fraudulent activity for business owners in the oil and propane industry? The reality is today minimally as the recurring nature of running tokenized credit cards in a card not present environment. Biometric technology is predominately used in a retail over the counter environment and is a helpful deterrent in fighting fraud.
More ‘buy now, pay later’ options
“Buy now, pay later” options are becoming increasingly popular for consumers, but how does this change impact business owners? How will business owners think about utility payments? Will they scale back on their needs due to increasing debt? These are questions that all business owners should consider.
As a Consultative Independent Treasury Strategist, I level the playing field as I can help you stay ahead of these changes and utilize financial technology to insure optimum efficiencies and boom line profits. To schedule a free consultation session with me, visit my website.
