Buy Now Pay Later solutions are going to face the new changing needs of end users, what are some of the top factors that will drive this though? Richard Formoe, Chief Revenue Officer at QuickFee weighs in:
Hi Richard, we are glad you are here. How do you think have Buy Now Pay Later payment solutions evolved over time? What are according to you the biggest industries that can still witness significant boost with these solutions?
BNPL Solutions are rapidly evolving with various new technology and product offerings to constantly offer something that BNPL isn’t already offering. We can see companies like Splitit leverage the consumers’ availability on their existing credit cards and not become affected by the recent Capital One decision to no longer allow credit cards on BNPL platforms. We are also seeing this rapid adoption of 4 instalments to avoid regulations and licensing, etc. These Fintech companies are constantly adapting and building technology that is intriguing to the everyday consumer. In my opinion the most underserved area that BNPL has not penetrated yet is the professional services, and business services. These are people who need access to advice from their lawyer, from their accountant, or a small start-up that needs services done. We are witnessing a huge demand first hand.
What are the biggest ways that you have observed in which newer fintech payment start-ups and innovators have changed the game for B2B firms and financial organisations?
In regards to payment, the most important thing a business can do is always have multiple options which are easy to access. According to the Federal Reserve, paper checks are declining by 1.8 Billion per year if this rate is maintained, it could very well become obsolete by 2026. This is scary because the majority of businesses are still accepting, and paying their bills using this outdated method. PayPal and other similar companies are making it easier for small businesses to adopt digital payments.
As we can see fintech is evolving rapidly today, but what do you think are some major areas that still require a lot more focus and development to improve financial services and processes for customers?
If the government and banks come together more often on regulations then we in the Fintech space will know where to continue to invest our time, or not invest our time. People are nervous of the future oversight but doing this will create a clear lane that we must stay in as required we all deliver exceptional customer experiences with our product offerings.
How do you see rising technologies are influencing the roadmap of financial services over the last few years; how do you think will this trend transform in the coming decade?
Banks are using Fintechs at an increasing rate and we are now seeing Fintechs buying banks; i.e. Lending Clubs purchase of Radius Bank. I believe that as regulations and laws start to appear and tighten within Financial Technology we will be able to see more fintechs pursing their own licensing with the FDIC, etc.
Tell us about your thoughts on the global fintech start-up marketplace- what are the most innovative payment providers that you’ve seen?
We have various great fintech start-ups out right, but I like what Tala is doing, Avant, Brex, and Acorns are the ones that I would personally like to watch. I think we will see more Micro-Lending fintechs showing up post the covid-19 recession.
We know that the global fintech trends are changing and the market is shifting due to business environments (including Covid-19), what do you think will the state of fintech be in 2021 and beyond?
In regards to payment methods, COVID-19 has made the entire thought process of most financial institutions/fintechs to shift and we expect to see more innovative ways for people to pay in 2021 – particularly from companies that never offered such a service. In the U.S., 51% of people are using mobile wallets (like Apple Pay) and other tap-to-go credit cards, while 58% of the people in the country are now more likely to use contactless payment methods than they were before the pandemic. In 2021 you will see more banks taking an interest in fintech companies that have already achieved massive success with contactless payment offerings.
We’ll be glad to hear about some of QuickFee’s upcoming plans / innovations in 2021?
At QuickFee, evolving is a constant priority while offering “All Things Payments”. If there is a new product, or an idea that will serve our core “Services businesses”, exploring is something we are always open to. We have some exciting things on our roadmap for 2021 and look forward to sharing some of these soon!
Before we part, tell us about some of the biggest learnings and tips you’d like to share with fintech innovators and leaders?
The only advice I have received from Fintech leaders that is absolutely true is constantly learning and watching the M&A deals. This will keep updating you on what the market is demanding, and what you should never miss.
Thanks a lot Richard it was a fun session! Hope to see you back at V3 Media soon.