By Richard Sine | Illustrations by Montse Galbany
With the onset of Covid-19, digital payments went from a convenience to a matter of public health as businesses and customers tried to curb the virus by limiting the use of cash and shared devices.
“In the case of contactless payment before the pandemic, businesses had been trying to drive consumer behavior,” said Douglas Mearkle, head of merchant solutions sales at TD Bank. “But during Covid, it was the consumers who were demanding it as the safer way to pay.”
Now companies are learning how the payment technologies they adopted to get through the pandemic will prove beneficial long after Covid-19 has subsided.
In this post, we explore three trends changing how businesses conduct financial transactions with consumers, other businesses and their employees. Read on to find out what businesses stand to gain.
As digitization makes it easier and faster for people to make payments, they’re increasingly expecting to receive payments just as quickly.
The trend of faster payments gained traction with apps that helped users instantly transfer cash to each other and businesses. Now B2B use cases are growing, helped in part by the Federal Reserve rolling out its own instant payments system.
“We’re entering a new era of payments in this country,” said Jo Jagadish, head of corporate products and services at TD Bank. “These new models are going to create competitive differentiation among companies that are early adopters of these payment rails.”
Once an afterthought, offering digital payment options has become integral to attracting and retaining customers. In fact, more than four in five consumers expect digital options when they shop in-person, according to survey data released this year.
Meanwhile, when it comes to payments between business partners, checks continue to lose ground, giving digital transactions a more prominent role.
Going digital with payments creates a wealth of data that can deepen customer engagement and drive efficiency.
“With the advancements in AI and data analytics, we’re seeing businesses turn data into rich insights that serve as a competitive differentiator and benefit their customers with targeted, contextual offers, as an example,” Jagadish said.
How can your company make the most of your payment transactions? Visit TD Bank to find solutions that are right for your business.
Please note links in the above article will direct you to corresponding information on TD Bank’s website.