In this webinar, which was live on 15 June 2023, we discussed 5 Payment Trends Too Big To Ignore: Expert Advice for Global Growth, moderated by Mélisande Mual from The Paypers.
The first trend discussed was Fintech-as-a-service in the gig economy. Coined by Rapyd, fintech-as-a-service refers to ‘delivering an extremely complex concept of banking rails, card rails, wallets, and even cash, in one API.’ David Rosa emphasized that with remote work becoming a 'supertrend' after Covid-19, fintech-as-a-service has become more relevant than ever. Platforms like Tango exemplify how the challenge of addressing multiple stakeholders on one platform can be addressed, serving each respective fintech need in one API and across borders and currencies.
Secondly, the panel touched on embedded finance, which involves integrating financial services into other products and use cases using technology as the key enabler. A key takeaway was that while the opportunities for embedded finance are not limitless, as there are only so many financial services necessary in an integrated economic system, it is still relatively underpenetrated globally. There is room for growth, particularly in areas such as banking, card issuing, and lending (with payments being the frontrunner in product use cases). The panel stressed the importance of succeeding at one use case before moving on to the next, as engaging with too many embedded finance products simultaneously across different geographies may dilute the results.
Joel Van Arsdale further commented on the need for multi-currency treasury solutions being driven by rapid growth in cross-border commerce as well as in the gig economy. At the same time, traditional banks have been reducing their global footprints and partnering with fintech companies rather than providing cross-border services themselves. The panel further discussed the challenges faced by payments and finance managers in a landscape where ‘money must move faster than ever’, and real-time payments are growing domestically but not necessarily internationally in different currencies. To address this problem, David Rosa from Rapyd called for a real-time foreign exchange solution.
The fourth trend elaborated on by the panel was the importance of faster payment networks. Eyal Shohet highlighted their criticality in the gig economy as both are ‘made of the same fabric.’ Real-time payments can be instant and cross borders quickly, while the gig economy thrives on quick revenue turnaround and operates on an international scale online. Real-time payments enable companies like Tango to provide services and receive quick payments. Another notable takeaway was the relatively limited regulations surrounding fintech services providing faster, real-time payment networks. The licensing requirements in this space are less stringent compared to those for banks while still ensuring compliance, allowing for better global expansion.
The last trend discussed was the rapid growth of virtual cards, which diminish the need for physical cards and bank accounts. Virtual cards prove to be a solution for many financial pain points as they are multi-currency and global.
In concluding the webinar, the panel addressed questions regarding interoperability, regulations, and compliance in managing cross-border transactions, as well as how and where to expand fintech services internationally, among other topics. Additionally, Rapyd shared three valuable assets developed during the webinar: the just-released Future of Fintech e-book, The State of B2B Cross-Border Payments, and a blog by David Rosa featuring top predictions for the year ahead.
Rapyd is the fastest way to power local payments anywhere, enabling companies to expand worldwide without building complex payments infrastructure. By utilising Rapyd’s global payments network and flexible Fintech-as-a-Service platform businesses can accept and disburse funds and create innovative payment experiences.
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