Mobile Payments Adoption in India

In the global goal of inclusive and sustainable growth, financial inclusion and access are broadly recognized to be key steps toward it. Without a doubt, technology has been playing a pivotal role in expediting and accelerating this revolutionary progress. One of the recent ways we have seen this take-off is through a massive mobile payments app adoption.

Many countries have taken the major step in having technology at the forefront of their economic growth. China is a prime example in leading and developing digital financial services across its population. In 2021, it is projected that more than half a billion people in the country shall pay through their phones at a point-of-sale.

This means that China’s booming payment apps market has opened up payment convenience and payment solutions to both physical and online stores at a penetration rate of 39.5 percent. Adopting a mobile payment app approach has been done by many shopkeepers, restaurateurs, and e-commerce platforms. To this effect, small businesses have massively benefitted as businesses move directly from cash to payment apps.

However, with 1.7 billion people remaining unbanked, financial inclusivity continues to be a major challenge across emerging markets and institutions. In a recent Statista report, one of the emerging countries that are gaining momentum and penetration rate on adopting a mobile and digital future is India:

Source: Statista Digital Market Outlook

India’s high user-app penetration rate on mobile point-of-sale

Among emerging and developing countries in Asia, India has always had high payment app penetration levels above the world average. While average spendings per consumer remain low with only a casual usage of these mobile apps, this still suggests that India has a ripe population to a potential digital payments economy.

India is a country known for its incredibly diverse population. This diversity is also seen in the types of mobile apps that are popular in the country such as e-commerce, entertainment, and travel apps. There are several factors that have contributed to this growth including an increase in smartphone users, improved internet connectivity, and the growth of startups in the country.

Despite this growth, there are still some challenges that need to be addressed. One of these is the lack of standardization in the app development process. This can lead to fragmentation and a lack of interoperability among apps. Another challenge is the low penetration of credit cards and digital payments. This makes it difficult for companies to monetize their apps. However, these challenges won’t last any longer.

More people in India would eventually adopt mobile apps, making concerns about fragmentation and lack of interoperability become less of a hindrance. Both Indian users and entrepreneurs would begin looking towards digital payments and app solutions. Eventually, B2B struggles will exponentially decrease as more payment solutions will allow businesses to successfully launch more local forms of payment methods to unlock untapped markets in India.

All these reasons point to India as a country that is ready to accelerate its mobile app and digital payment growth as more users and merchants alike adopt this practice in the years to come.


Mobile app adoption statistics of India in 2021

A key reason why the Indian economy remains fertile for digital advancements is that its mobile app industry is expected to reach a value of Rs 2.3 lakh crore by 2021. Assessing to be one of the largest and most profitable global markets, there are over 1.12 billion mobile phone subscribers since 2016. This is out of a population of 1.32 billion which makes India leading in the subscription penetration rate of 98 percent.

India has the world’s third-largest mobile network coverage, with approximately 90 percent of the geographical area covered by mobile signal coverage. The country has witnessed a phenomenal growth in mobile data consumption, with average monthly consumption per user surging to 9.8GB in 2016 that is expected to reach 24GB by 2021.  Even its e-commerce industry remains flourishing exponentially.The strong uptake of smartphones and increasing mobile data consumption are the main drivers for this growth.


The launching of the Digital India Program

More than an organic shift towards a digital future, the Government of India has also launched the Digital India program since 2015 to transform India into a digitally empowered society and knowledge economy. The ambitious initiative aims towards e-governance, connecting rural communities with cloud services, broadband highways, public internet access programs, and digital literacy missions.

On this backdrop, it is estimated that the number of mobile users in the country will rise to 1.22 billion by 2021, an increase of 21% from the end of 2017. Despite this growth, India’s mobile market is still at a nascent stage. The expected penetration rate for smart devices in 2017 is estimated to be 28%, as compared to over 80% in markets such as the US and China.

This means that these statistics shall only increase from here onwards, with combined efforts and initiatives from the Indian Government, consumers, and businesses. This will offer larger curves and potential for growth in the Indian mobile and payments market once more b2b payments solutions bridge the gap and struggles among Indian localities and regions.


The future of mobile payments and app adoption for India

The global mobile economy is booming and is estimated to be worth $3.3 trillion dollars entering into 2022. With the penetration of high-speed networks and affordable smartphones, consumers’ appetite for digital content and convenience has increased exponentially. India has among the highest number of internet users in the world. Over 80% of this internet usage is through mobile phones.

As India’s mobile app market reaches and crosses $3.4 billion in 2020, a report from Strategy Analytics project that revenue from mobile apps will jump tenfold over the next five years, reaching $10 million (Rs 66 crore) per day and exceeding Rs 2.2 trillion (US$33 billion).

The Indian mobile app economy is still in its early profitability stage and has rich potentials to grow significantly over the next few years. Research director at Strategy Analytics Neil Shah projects that the average Indian consumer in-app spendings shall only increase, driven by the high availability of affordable smartphones and data plans with huge explorations on newer business models like paid apps and advertising. In turn, this will revolutionize the country into a tech-centric economy.

This is one of the ripest periods for global businesses to enter the Indian economy and unlock untapped regional markets in the emerging country. This can be effectively reached through utilizing digital payments solutions that will allow interoperability across apps and provide people of India access to more accessible e-payment methods. Soon enough, India could potentially pivot towards a massive mobile payment app adoption next to China.

The PayFuture team is committed to producing Economic and Financial Technology content. In this journey towards information, we envision the world to become more aware of digital payments and innovations that may change the future.

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Why Fintech Startups Set Eyes on Africa

The Africa fintech startup scene experiences unprecedented growth due to an influx of foreign investments. In fact, the market is under the surveillance of many fintech investors and for the right reasons.


Generally, fintech ventures are hoping to pioneer an innovative ecosystem up for adoption. Africa records having a digital-savvy young population. Yet despite this, it was lagging behind other emerging markets in venture capital activities.


At present, however, the market is witnessing an impressive acceleration in investments in the past months. According to Disrupt Africa, startups in Africa secured about $330 million in funding in early 2021. This recorded number is double the fund raised from 2020, with more forecasted to come.



‘Africa is a Blank Slate’


Africa is an ideal market because of its rawness. Pierre Shurcke, Partner at European growth investor from TempoCap exclaimed: “Africa is almost like a blank canvas that VCs and startups can build on. We’re going to see a quantum leap in the development of [the] ecosystem and there’s a great amount of opportunity for really strong returns.”


Pierre also explained why VCs outside African refrained from entering the market before. He said high geopolitical issues, currency-related risks, and the geographical nature of the continent have some way or another raised red flags.


But now, things have started to change. After recent success stories proliferating the media are enticing more investors in the African fintech market. Not to mention that the size of the market can relatively constitute the size of the opportunity.


Investors Magnets: Valuations and Success Stories in Africa


Valuations given to African companies clearly draw in more foreign investors. Furthermore, success stories draw VCs in the market. Compared to the US and Europe where prices skyrocket, Africa is a greenfield with a large opportunity to grow. Hence, the market tends to attract more risk-taking investors.


Last March 2021, Nigeria-born payments startup Flutterwave attained unicorn status in March with a $170 million round, PitchBook data. This valuation has made the continent more attractive.


Some other VCs investing in the region are Japan’s Uncovered Fund, which reportedly launched a $15 million drive in February to back early-stage African startups. Then, we have USA-based Tiger Global backing microfinance startup FairMoney. As per TechCrunch, Valar Ventures and Target Global lead the $55 million series B funding for bank Kuda that has a $500 million valuation.


African Fintech Startups: A Bright Future Ahead

There’s a lot of innovative local startups solving true-to-life struggles. What these startups offering has a real use case usually necessary for the community’s growth. More importantly, the solution is aiming to serve a huge chunk of the population.  


Johan Bosini of Quona Capital remarks. “There is now real evidence of appetite from larger investors, which has led to more confidence in the ecosystem and unlocked a lot more local capital and expertise, further fueling growth.”


Though African startups classify as high-risk-and-high-reward investments, many investors are following suit. Of note, the firms entering the market early may have the upper hand. Most likely as they reap stellar returns as the ecosystem grows into adoption.


5 things you need to know about the E-commerce industry in India

India is known as being the second most populated country in the world. India is experiencing a remarkable digital boom. The Indian E-commerce market is the fastest growing market in the world. It is expected to grow at approximately 1200% by 2026. With increasing internet access and expanding payment options, consumers are shopping more than ever online.

Listed below are some of the factors which highlight the attractiveness of the Indian E-commerce market.

  • The biggest and most influential factor in the growth of E-commerce business in India is the increased use of the Internet and smartphones. It is predicted that in 2021, 70% of the total Internet usage will be done via a mobile device, like an iphone. Mobile usage could be the key to making this market boom, especially as smartphone penetration is growing at 150% year on year.
  • Language is also a key driver for E-commerce growth. The main national languages of India are Hindi and English. The English speaking ratio is higher among those who are younger and it’s the younger generation who are mostly using smartphones and making purchases online. This is a huge market.
  • Cash on Delivery (COD) as a payment method will still be popular in India however the predictions imply that the popularity of COD will reduce from 2021. Cash includes a variety of payment types including paper money and credit or debit cards for example. However, the payment type accepted for COD is generally specified by the seller, meaning that the buyer must make full payment when the goods get delivered. It is predicted that COD methods of payment will drop from 60% of purchases down to 45%. Mobile Wallets & Credits Cards will also pick up steam and grab market share.
  • Government initiatives like, ‘Start-up India’, and ‘Digital India,’ aim to bring new players to the Ecommerce industry. Government schemes like these also encourage networking and collaboration with other experts, which can lead to innovation, including in the E-commerce sector
  • In B2B E-commerce, 100% FDI is allowed. FDI stands for Foreign Direct Investment. Foreign Direct Investment grew 13% at the peak of the COVID-19 Pandemic. India is part of top 100 club on Ease of Doing Business (EoDB). The ease of doing business index is an index created by economists at the World Bank Group. With India being ranked in the top, this indicates better, usually simpler, regulations for businesses and stronger protections of property rights. The reason that India is now ranking higher is largely attributed to ease in FDI norms across sectors of the economy. According to UCTAD’s world investment report, India is in the top 5 for being the most favored investment destination. As the government in India eases FDI restrictions and makes investing more attractive, this is likely to encourage greater global involvement in business, including in technology and more specifically in e-commerce sectors

If you are looking to invest in India, or you’re looking to provide payment solutions to consumers in India, now is the time. At Payfuture, we understand global mobile payments. As mobile usage surges globally, many emerging market’s most popular payment methods are using mobile only wallets and localised mobile payment systems. These are all enabled as standard via the Payfuture connector gateway.

Contact us today to find out how we can help you.

Ways to increase your payment conversion rates by over 20%

Businesses who sell products and services online often sell via a website known as an ecommerce website. These websites accept online payments from customers for items and services that they wish to purchase. If a potential customer is on the website, adds an item to the shopping cart, goes to the payment page and then doesn’t complete their order, this is an example of ‘checkout abandonment,’ which results in a reduction in sales orders.

To reduce the risk of checkout abandonment and to ensure that more customers complete their purchase on your website, we have listed below the main areas of consideration which could increase your conversion rates by over 20%. This leads to an increase in sale orders.

  • Create a user-friendly experience – Make your website easy to navigate, especially for mobile use as more people are purchasing products and services online via mobile devices. Make sure your website is not only mobile friendly but also simple to use. This will also involve streamlining your website’s navigation. You may wish to avoid having too many product categories.
  • Ensure you website speed is fast – There’s a 2 second rule. If your website takes longer than two seconds to load, it is likely that over 50% of your website visitors (potential customers) will lose interest. A delay of just one second can result in a 7% reduction in website sale conversions.
  • Check for errors on your payment pages – If your payment page has errors on it your customers are going to find it hard to navigate and it may make them confused about the payment process, which could result in your prospective customers abandoning the shopping cart and leaving the website. It’s crucial to proofread your payment page(s) to make sure that they’re free from errors. It is also useful to test your payment page and do ‘test,’ orders to make sure the process goes smoothly and works well with no errors.
  • What payment options are you offering? – Are you offering enough payment options to cater for the needs of your customers? Some customers from different countries may have different preferred payment options.
  • Use Analytics – By using analytics you can gain insight into your customers website journey. Insightful data is valuable to help your business to make strategy decisions. With the right analytical tools, you can find out a lot about your customers. This data can also help you with your marketing targeting and ongoing strategy.
  • Consider partnering with a payment and / or technology provider who can ensure that your e-commerce website is of a good standard for encouraging customers to complete the full payment process.
  • Consider using a conversion recovery tool like the one we offer at Payfuture. Our conversion recovery tool will offer the customer on your website, an alternative local payment method if a transaction has declined for any reason. This also improves customer retention statistics. Coupled with our unique AI technology that predicts an approve or decline before it happens – this is one of the most powerful propositions available in the market.
  • Our conversion recovery system can convert up to 20% of potentially failed transactions into approvals.

Find out more here – PayFuture

Payfuture Launches AI Driven Customer Conversion Tool That Saves Merchants Up To 20% Of Lost Customer Check-outs



Singapore (31 01 2021) Global Payment Technology provider, Payfuture, has launched a unique AI driven ‘Customer Conversion Recovery Tool’. This ground-breaking innovation significantly reduces the number of online customers, who would previously have have checked out – unlikely to return. Recognising that many of these sales are lost at the payment approval stage – Payfuture’s system sets out to overcome initial payment difficulties, converting lost sales into business. In practice, the new system can save up to 20% of check-outs; thus paying for itself at a very early stage.

Where transactions are declined, Payfuture’s Customer Conversion Recovery tool will offer the customer an alternative local payment method. This significantly boosts approval rates whilst improving customer retention statistics. Uniquely, the process is driven by Payfuture’s advanced AI technology. This anticipates when an online client is about to abandon a transaction or needs support with a payment, allowing for automated chatbots or the customer call centre to re-engage promptly before the sale is lost. As a truly global solution, the Payfuture toolset will localise language, currency and use the most used local payment platform as standard, for the best-by-country user payment experience.

The Conversion Tool will work with most leading payment platforms and has also been fully integrated with Payfuture’s own widely acclaim Payment Connection platform. No other integrated solution offers such a powerful global proposition to the world’s Merchants.

Manpreet Haer, Co-founder of Payfuture says: “Tragically, billions of dollars are lost each day as clients abandon their e-Commerce check-out pages. We worked out though, that by using ‘AI’ to assess clients alongside a powerful recovery tool, we could convert up to 20% of failed transactions at the payment stage – by converting them into approvals. This was such a huge source of potential extra revenue that initial interest from Merchants has been extremely high – so we expect demand to be very strong indeed.”

Note to Editors:
PayFuture was founded in 2019 by veterans of the payments technology and cyber security sectors. The business was formed to provide a best of breed alternative local payment connector focusing on providing market leading global payment technology.

The founders realised that in order to be successful in existing as well as emerging ecommerce markets, a first rate client journey was paramount.

Created by a team of innovators, AI technologists and payments enthusiasts, Payfuture is designed to offer an experience, with market changing features and technology.

For more information on the tool or Payfuture get in touch at



Expanding your business in the UAE? 5 tips for doing so

The United Arab Emirates is made up of seven different emirates. These are Abu Dhabi, Dubai, Sharjah,Ras al-Khaimah, Ajman, Umm al-Quwain and Fujairah. Dubai and Abu Dhabi have about six million of the 9.5 million population in those areas. These are popular areas for business and trade.

The UAE has become a financial powerhouse with a favorable tax system and liberal trade regimes. UAE is also an attractive investment hub and they have a ‘2021 vision.’ The UAE Vision 2021 was launched by H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. The Vision aims to make the UAE among the best countries in the world by the Golden Jubilee of the Union. Their goals help to facilitate a well-regulated and secure business ecosystem ideal also for foreign investors and businesses to trade there.

These tips and considerations are based on transacting in the UAE, if you’re a non-UAE business.

Let’s firstly look at some stats:
  • Smartphone penetration – Just over73%
  • Internet penetration – Just over 93%
How do people pay for goods and services in the UAE?
  • 59% Credit cards
  • 27% Mobiles
  • 7% E-wallets
  • 6% Prepaid cards
  • 1% Bank transfer

The use of e-wallets is on the rise and the majority transact with credit cards using mobile devices to make payments. Ensure that you accept these payment methods so that you don’t lose potential customers

1. Due diligence, research and partnerships: Some of the practices and regulations in the UAE relating to business and trade may be different to what you are used to, so do your due diligence on all of this. There is an Authorised Economic Operator in the UAE. The UAE Authorised Economic Operator (AEO) program also provides an opportunity for businesses engaged in international trade activities to partner with Dubai Customs through a mutually trusted relationship. The AEO program can be valuable for businesses engaged in international trade activities in the UAE. They may also be able to give you valuable advice.

2. Understand the risks: Understand the risks and opportunities around foreign exchange and changes to currency such as currency fluctuations. This could affect your business. Also, understand if there are any buyer risks, and know what they are. This could mean checking if a potential business client is in insolvency, before transacting with them

3. Legal agreements & payment terms: Make sure that you have a legal agreement in place relating to your payment terms, specifically relating to non-payment of goods for example.

4. Insurance: Look into insurance options for doing business in the UAE.

5. Payment methods: Fast payments are crucial in the UAE. Ensure you have a secure payment option to accept payments in the UAE. As many people in the UAE use mobiles to pay for goods you need to make sure you offer a simple and secure mobile payment option. You may need to partner with a provider for this. You should also make sure you have a good payment gateway in place, which is a merchant service that authorises payments. Payfuture can help with your payment solution needs. You also need to have efficient credit control procedures when selling overseas.

Payfuture, the local Payments connector opens a world of opportunities for global expansion including in the UAE. Contact us to find out how we can help you make expanding your business to the UAE a success.

10 reasons why international merchants should offer better payment options to LATAM customers

Why Latin America? LATAM is a region full of potential opportunities for those who know where to find them. With 20 countries and around 600 million people, there is an opportunity for your business.

Latin America has a lot of economic growth over the past 10 years. Whether you sell food or even luxury goods there’s lots of opportunity in Latin America. It is also known as a region for large volume exporting.

Taking a closer look specifically at the payment sector in LATAM, those residing in Latin America use different alternative payment methods (APMs) to purchase goods and services. These payment methods include using local credit cards, bank transfers, cash vouchers, the option to pay in instalments and paying via mobile wallets such as Apple Pay. Apple Pay has only recently become available to those in Mexico.

The impact of the Coronavirus pandemic has had an impact on LATAM and it has accelerated many trends in the payments sector. The number of APMs available to Latin American consumers is on the rise. Online card payments in Chile doubled in March 2020 in comparison to March 2019. More people are buying online from businesses across borders.

Paying in instalments is a popular payment option in LATAM. According to statistics, about 60% of ecommerce is currently transacted via this method. If we take a closer look at Brazil, they have an ecommerce installment rate as high as 80%.

Merchants doing business in Latin America should consider supporting the needs of consumers here.This could be by providing online instalment payment options to match local expectations or by providing them with ways to pay securely on their smart devices regardless of whether they have a bank account or not. Businesses can apture a segment of the market if they provide the ideal payment solutions.

Below we have highlighted the main reasons why international merchants should offer better payment options to LATAM customers:

  • The Smartphone Opportunity –There is an increased use of smart phones in LATAM and this has resulted in an increased use of purchasing goods via mobile devices. This trend is increasing so providing secure mobile payment options taps into this market
  • Remove limitations – Not everyone in LATAM has a bank account. Your target market may wish to buy your products or services who may not currently hold a bank account, so if you offer a payment option for them this will gain new customers
  • Awareness – It will gain your business more awareness. By offering ideal payment options you are showing your target market that you are catering for consumers needs and care about what they want. You can also do a marketing/advertising campaign on the APM you are now providing for greater exposure
  • Sell more – You will be able to increase your sales. More payment options will likely gain more customers who prefer secure digital payment methods
  • Increase market share – If you provide better payments options, you’re likely to gain more customers and increase your market share
  • Improve your brand – As you accept payments from customers in LATAM you are gaining potential brand advocates for your business. If they have a positive experience, they are likely to spread the word online maybe via social media and this can lead to even more customers which again leads to more sales and revenue.
  • Faster transactions – If you offer a good payment solution where you (the merchant) get the funds faster and the customer receives the items/service faster this is a win-win situation for you and the customer. We live in a society where we want things now and we don’t want to wait so fast transactions are crucial
  • Security – An improved and secure payment option is more secure for the customer and more secure for the merchant. This reduces risk to both involved in the transaction.
  • Cashflow – Faster payments is also likely to lead to a better business cash flow.
  • Stay ahead – Don’t let the competition get ahead.

Payfuture is an expert in LATAM payments.

Contact us today to find out how we can help you to make the most of this business opportunity.

What does the future look like for cross border payments?

There has been a lot of change to cross-border payments over the last five years. New regulations in this sector and changes in compliance have had an impact. Fintech start-ups are offering new technology solutions to support the cross border payments sector and better payment processing options have all made a difference. This innovation is likely to continue. The demand for cross border payments is very high and currently steps are being taken to improve cross-border payments overall.

According to research by Mkinsey, ‘cross-border payments growth is particularly compelling in marketplace payments and the gig economy. Amazon is a driver of the marketplace and players like Etsy and Upwork are also growing strongly which is, ‘fuelling cross-border commerce and employment and driving C2B, B2C and business-to-small-business payments.’

Banks and other financial institutions need to be able to move money around efficiently, transparently, securely and in a cost-effective manner to keep up with the needs of the population who wish to send and receive money between borders

The covid19 pandemic has also had a significant effect on global cross border payments.Deloitte state, ‘we have certainty that covid19 will change the face of payments globally,agnostic of pandemic severity.’

This current pandemic has meant that the use of cash has been reduced across the globe.People are going out less, in particular where there are restrictions in place and digital payments are increasing. There has been an increase in online / mobile payments as a result of this. There is evidence to suggest that some people are purchasing things across the border for the first time ever and are also placing large orders with businesses abroad, including the purchasing of Covid19 masks and other personal protective equipment (PPE).

According to McKinsey, ‘the most striking and potentially lasting impact is an accelerating pace of change in this industry.’ There has been a huge shift in buying behaviour and more than ever people are purchasing online. The pandemic has accelerated the move from physical (going to a ATM machine or bank branch ) to digital (online virtual) banking. It’s also impacted the need for faster payments especially when you need items or a service urgently.

Some businesses may accept PayPal for smaller amounts, however if you’re transferring money in the thousands this may not be the most ideal solution. PayPal can also be costly in terms of fees. Banks can also be expensive, as some charge £25 to send money across the border per transaction, for example from the United Kingdom to India. Fees that are high can put people off from using their services.

One of the main challenges in cross border payments in both speed and security. Often when you want to transfer money to another country across the border it can take days to reach the recipient/ the receiver. Cross border payments have been traditionally known as often being slow and because people want to be able to transact and send and receive money faster, professionals in this sector have looked at improving payment options. This is innovating the industry.

Even today, if you’re using your main bank for cross border payments you may have to make a phone call and provide all the information which is time consuming and sometimes you may have to repeat this. This information then this goes through security checks and then the money might reach the recipient within the week. This is too slow. The need for speed is so crucial for cross border payments.

Swift is a payment method that is available 24/7 that most of us are familiar with, however as mentioned above, this usually requires manual entry of recipients information and involves intermediaries. It often takes too long and the fees are known to be expensive.There is an updated version of Swift Global Payment Innovation (Swift Gpi) which has improved the cross-border payments process. Banks such as Societe Generale have been using it in some form since 2017, although it became more popular in 2019. The main reason it was developed was to provide tracking, transparency and speed. Is also enables payments to be identified in real time, so if need be, they can be stopped and recalled midtransfer in cases of fraud. Payments are also promised within 24 hours, however, it is also costly and not affordable to all merchants.

This is also why fintech innovation is at a high in this sector, due to the demand and requirements of merchants and consumers.

As mentioned previously, to meet the needs of today and the future, payments need to be instant and much cheaper. There needs to be improvements to the speed of being able to send and receive money. This needs to also be in a secure way, without too many restrictions whilst being a simple process – it is what customers and merchants want.

It is also why a technology known as blockchain has also been used to transfer money and this is becoming more of a popular method. According to American Express (Amex),‘blockchain technology promises to facilitate fast, secure, low-cost international payment processing services (and other transactions) through the use of encrypted distributed ledgers that provide trusted real-time verification of transactions without the need for intermediaries such as correspondent banks and clearing houses.’ Blockchain technology was initially used to support the digital currency Bitcoin, but it is now being explored for a wide variety of applications that don’t involve bitcoin. According to Forbes, ‘cross-border payments supported by blockchain provide significant advantages to businesses and consumers. Blockchain-based payments are cost-effective, almost immediate, secure and transparent.’

Deloitte estimates that business-to-business and person-to-person payments with blockchain result in a 40% to 80% reduction in transaction costs and take an average of four to six seconds to finalise compared to two to three days using the standard transfer process.These statistics highlight why more businesses would choose this method.

Options for cross border payments include outsourcing your payments management to a 3rd party. Merchants can also collaborate with fintech partners. Merchants need a payment gateway. A payment gateway is a merchant service provided by an ecommerce application service provider that authorises credit card or direct payments processing for e-businesses and online retailers for example. The definition of a payment gateway is the technology that captures and transfers payment data from the customer to the acquirer and then transfers the payment acceptance or decline back to the customer. A payment gateway validates the customer’s card details securely, ensures the funds are available and enables merchants to get paid. It acts as an interface between a merchant’s website and its acquirer. It encrypts bank card details, ensuring that information is passed securely from the customer to the acquiring bank, via the merchant. Encryption is a type of security that is required. This security aims to protects credit and debit card details. Simply, a payment gateway works as the middleman between your customer and the merchant, ensuring the transaction is carried out securely and promptly which is very important. Payment gateways have a part to play in the future of cross border payments and a good payment gateways can also increase sale conversion rates.

Our PayFuture payment gateway connector offers access to various local payment options across emerging markets. Countries initially accessible through the gateway include Argentina, Bahrain, Bangladesh, Brazil, Columbia, India, Japan, Malaysia, Mexico, Nepal,Pakistan, Saudi Arabia, Bahrain, Qatar, UAE, Thailand and Vietnam.

It uses an artificial intelligence (AI) based connector and one API to allow the switch/connector gateway function. Access to local ecommerce payment methods is now crucial in emerging territories – especially those without developed retail or personal banking sectors.

There is also a link between payment methods and conversion rates. Conversion recovery solutions are useful for merchants who do not want to lose sales. This is a very valuable business tool that is gaining popularity. This is an important tool for the future of cross border payments. Payfuture offers a conversion recovery solution that works in real time to identify when a customer might abandon a sale. With transactions that are ultimately declined, the system offers users the option of trying a different payment option.

If merchants pick the right payment gateway provider and technology partner (like Payfuture), they will have a good range of tools and expertise available to them to optimise their eCommerce conversation rates, their sales and turnover.

Overall, the key things that are going to be a focus on cross border payments in the future include;

  • The growing role of SMEs in international business and the needs for SME’s access to affordable international payments will further disrupt this sector
  • Transparency on fees
  • An increase in Blockchain use
  • Tracking – itemising payments in a clear ‘simple to understand,’ way.
  • Speed – not waiting for payments to reach accounts. Fast for the customer and fast for the merchant/receiver.
  • An increase in cyber security in this space

The global payments landscape transformation for 2021 – The trends and the predictions.

Due to the covid19 pandemic this has increased demand for online payments.

Below we have listed 8 predictions and trends for the global payments landscape transformation in 2021;

  • There will be an increased use of digital biometrics for online security
  • Regulatory frameworks will come into play and be more fit for purpose
  • The ongoing trend is showing an increase in online payments that will continue globally
  • Cash transactions will continue to decrease globally
  • In emerging markets where some people still remain unbanked, they will make more use of mobile wallets
  • Countries with high revenue growth are also characterised by rapid electronic transaction growth – this is an ongoing trend
  • Digital marketplaces are expected to account for over 60 percent of digital commerce volume in the next few years.
  • Small and medium-size enterprises (SMEs) are contributing to a growing share of valueadded services in payments revenue.

According to other sources including research from Mckinsey, the other areas that may change the global payment landscape include:

An increase in ‘One stop shop,’ platforms

This is a trend that acquirers should look at. It is likely to be lucrative if acquirers can create SMEfocused one-stop-shop platforms.

A deeper look at the Infrastructure

Some infrastructure setups are not scalable and they are sometimes known to be burdening. There is a dramatic need for the software, data platforms and infrastructure to be an enabler to support merchants efficiently across borders, locations, verticals and devices.

Customer segmentation for commercial growth – Sales and marketing

Organising the business around segments based on how customers buy, what size they are and what business industry they are in, is useful to be able to compete effectively in a competitive market.Segmenting customers like this will also enable acquirers to invest appropriately in relevant sales and marketing campaigns. This is area that those in the finance sector will continue to look at.

The importance of data analytics and getting this right – Differentiating through data.

As we already know, the shift to digital has created a much greater demand for enhanced authorisation, fraud checks and faster underwriting decisions etc. Acquirers often have lots of data,however being able to find the data that they need is valuable. An unclear data strategy and poor data architecture would negatively impact the business and cause a lot of wasted time. These areas are things that need to be looked to improve the future of digital payments. This innovation is currently happening, and it will continue.

Complacency is a bad thing

This is a fast-changing industry and you need to stay ahead. The growth of APMs (alternative payment methods), with often evolving regulations, ongoing innovation and retailer interest, will necessitate their inclusion in acquirer portfolios. As APMs capture more transactions, acquirers may need to refine and adapt their current business models and processes. This may mean looking at their fraud processes, how they price things and how they are going to keep driving value that is future proof. Being able to adapt to the changing demands and trends is important.

Customer experience improvements

As the number of devices, payment options and channels increase, acquirers will need to continue to provide a valuable customer journey experience that caters for their needs.

Supply chain finance

According to Mkinsey research, they state that, ‘significant value in the global supply-chain finance (SCF) market remains untapped. Almost 80 percent of eligible assets do not benefit from better working-capital financing. We now see change accelerating in the market in response to a convergence of factors: an increased focus on working capital, structural changes in financing for small and medium-size enterprises (SMEs), a step change in digital adoption and the potential geographic relocation of $2.9 trillion to $4.6 trillion in spending on cross-border supply chains (for 16 to 26 percent of global goods exports) over the next five years.’

The impact of the pandemic on the future of Digital payments in emerging markets in 2020 and beyond

The COVID-19 crisis is having a significant and widespread effect on global payments across sectors.

As people have remained home and often isolated during the pandemic in 2020, many people have resorted to purchasing what they need online. This includes buying groceries online, buying toiletries online and paying your bills online for example.

The pandemic has significantly accelerated the shift towards digital payments. The International Monetary Fund did some research into the impact of the pandemic and they pointed out that,“digital financial services allow for social distancing,” and we know social distancing is important during the pandemic to reduce the spread of the virus. Also, during the pandemic, in April 2020 the World Health Organisation recommended the use of contactless payments (instead of going out and using cash) to slow the spread of the virus.

Research shows that even before the covid19 pandemic, the use of contactless payments was already increasing in parts of the world, however, this is increasing more rapidly now because of the impact of covid19 on our lives and the need to adapt. Mastercard highlighted that three-quarters of its transactions in Europe are now contactless.

Mobile payments have also increased. In the US, 56 percent of retailers are now accepting e-wallet payments, compared with 44 percent before the pandemic.

There has also been a reduced use of cash across the globe including in the emerging markets. As shown below, Mckinsey has highlighted how covid19 will see a decline in cash usage.

Furthermore, Covid19 underlines the importance of fintech in emerging markets. According to the World Economic Forum on this topic;

  • Financial inclusion in developing markets has become even more important during the pandemic
  • Mobile solutions are proving to be a lifeline in emerging economies
  • Fintech firms can use this opportunity to build their reputations and emerge stronger once the crisis has passed
  • Technology is critical. The technology also needs to be secure and compliant

To summarise, the pandemic has accelerated the move from physical to virtual banking.Furthermore, in several countries including in Mexico, some Fintech initiatives were launched to alleviate liquidity problems of entrepreneurs during the covid pandemic. There are reports from China that suggest that blockchain technology and other industry / technology advances like Big Data, 5G and AI (Artificial intelligence) have helped speed up business recovery and have played a part in efforts to control the spread of the virus and to develop a COVID-19 vaccine. Payments and Fintech innovation is being seen, to support not only individuals, but also businesses.

The future potential – more specifically in the emerging markets

The pandemic has highlighted the risks and restrictions inherent in analogue payments systems and the value and benefits of moving over to other digital options for banking and making payments. The pandemic meant that more small businesses are becoming digital and changing how their business sends and receives payments – this according to survey research has also led to higher levels of customer satisfaction

Although the emerging markets have some challenges there is huge potential for the payments sector in emerging markets. To summarise;

  • The shift to electronic transactions has placed front and center the need for merchant acquiring businesses to update and differentiate their service offerings
  • Regulators are going to play an active role in this growth
  • There will be new channels available and a new products space in this sector
  • Disruptive technologies and developments will see huge growth potential
  • The impact of covid19 on technology advances and the desire for cashless payments will enhance this sector.
  • Fintech initiatives are being developed to support SME finance in the context of the covid19 crisis – fintech is being seen as a recovery and economic survival and growth tool.

To conclude, there is evidence that digital payments is an accelerating trend and the momentum towards a cashless society has increased. There will be more demand for fintech solutions.