The COVID-19 health crisis has transformed business processes in the past two years. It accelerated digital transformation, revolutionising how companies process payments, deliver orders, and conduct other key functions.
These digital shifts are likely to last far beyond the new normal. So, here are seven digital payment trends for 2022 to help you keep up with the latest in the field.
1. Increased interest in green payments
Consumers have had an increased interest in green payments since the pandemic hit. Green payments are made to producers for their environment-friendly farming activities. Here, clients support local farmers with commodity or conservation pay.
Businesses take part in the initiative by allotting funds for carbon emission reduction programs and treating solid waste according to government regulations that aim to reduce their environmental footprint. Other organisations use recycled plastic materials for green payment cards.
2. Integration of cryptocurrency into mainstream financial services
Cryptocurrency has now become among the preferred ways of settling financial transactions. This mode of payment offers robust security measures, thanks to its immutable ledger. It also provides transparency through encryption and control mechanisms, allowing the database to store information that cannot be altered without recording the changes made.
An increasing number of entities are now accepting cryptocurrency as payment. However, note that cryptocurrency is not considered a financial asset as you will need an intermediary to convert it into cash to pay for goods or services.
3. The rise of the “Buy Now, Pay Later” payment arrangement
Consumers have also adopted the “Buy Now, Pay Later” scheme to manage their spending. Online stores like Shopee use this strategy to encourage customers to buy more since they can always settle their bills later. In turn, it helps boost sales while improving customer engagement.
4. The growing popularity of mobile wallets
Payments made through mobile wallets quickly rose in popularity during the pandemic as social distancing and contactless protocols were established. This payment method has become one of the most convenient ways to shop and pay bills nowadays.
Mobile wallets also facilitate faster transactions than paying in cash. In addition, they come with rewards and other incentives.
5. Increased use of international money transfer services
The last two years have seen an increase in international money transfer services. There are many reasons consumers and businesses send money abroad — travel booking, accommodation reservations, business purchases, salary payments, and remittances, among others.
This trend will likely continue due to the accessibility and convenience that international money transfer services offer.
6. The rise of payment orchestration platforms
Payment orchestration refers to integrating the whole payment process into a single software. Various payment orchestration platforms have now emerged to facilitate online payments, improve customer experience, and enhance marketplace scalability.
More and more businesses are also adopting payment orchestration platforms to streamline their expense management processes. This technology helps these companies work with local and global payment service providers within a single integration.
7. Automation of finance processes
Finance automation involves integrating technology into the financial process — invoice preparation, accounts payables process, financial analysis, payroll administration, and financial statement preparation, among others. The use of software reduces the need for human intervention in these activities.
According to Gartner's research, finance departments can avoid 25,000 hours of rework caused by human errors by incorporating robotic process automation in their financial reporting processes.
The digitalisation of the business landscape has prompted many businesses to automate their finance processes in managing their operations. Now, automation remains the name of the game. Companies continue to look for ways to simplify their accounting and payables processes through technology and end-to-end payment solutions.
Get Savvy with Convenient Tech
Many businesses worldwide had to switch to digital operations because of the ongoing health crisis and the overall prevalence of technology. These digital trends may be for the long term, making it essential for companies to adopt solutions like automated payment processing systems. These platforms are valuable in simplifying and speeding up payment procedures.
Streamline your expense management process with Spenmo. This end-to-end payables software brings internal spend management, automated bill payments, approval workflows, and accounting reconciliation into an integrated view.
Our vision is to create a seamless payables experience for fast-growing companies. Book a demo today to learn more about the platform!