Buy Now Pay Later solutions will have to meet 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, Good to have you here. How have you observed Buy Now Pay Later payment solutions evolve over time? What are some of the biggest industries that you feel can still witness significant boost with these solutions?
BNPL Solutions are rapidly evolving with different technology, and product offerings to constantly offer something another BNPL doesn’t already offer. You are seeing 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. You are seeing this rapid adoption of 4 installments 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 startup that needs services done. There is tremendous demand and we are seeing that first hand.
We’d love to hear about the biggest ways (that you’ve been observing) in which newer fintech payment startups and innovators have been changing the game for B2B firms and financial institutions?
The most important thing a business can do in regards to payments is always have multiple options, and make them easy to access. According to the federal reserve paper checks are declining by 1.8 Billion per year and at this rate, could become obsolete by 2026. This is scary because the majority of businesses are still accepting, and paying their bills using this outdated method. Companies like PayPal, etc are making it easier for small businesses to adopt digital payments.
Despite the rapid evolutions in fintech today – what are some key areas that you feel still need a lot more focus and development to enable better financial services and processes for customers?
I believe that the government, and banks need to come together more often on regulations so us in the Fintech space no where to continue to invest our time, or not invest or time. A lot are nervous of the future oversight but I believe this will create a clear lane that we must stay in and require we all deliver expceptional customer experiences with our product offerings.
In what ways have you seen emerging technologies influence the roadmap of financial services over the last few years; how do you see this trend shape up in the next decade?
Banks are acquiring Fintechs at a rapid pace 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 you will see more and more fintech’s start pursing their own licensing with the FDIC, etc.
We’d love to hear your thoughts on the global fintech startup marketplace- of the most innovative payment providers that you’ve come across?
There are so many great fintech startups out right, I like what Tala is doing, Avant, Brex, and Acorns would be ones that I personally watch. I think we will see more Micro-Lending Fintechs popping up after the covid-19 recession.
As global fintech trends change and the market shifts due to business environments (and also Covid-19), what are your comments on the state of fintech in 2021 and beyond?
When it comes to payment methods, COVID-19 has shifted the entire thought process of most financial institutions/fintechs 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’d love to hear about some of QuickFee’s upcoming plans / innovations?
At QuickFee we have made it a priority to constantly evolve, and offer “All Things Payments”. If there is a new product, or an idea that will serve our core “Services businesses” we are open to exploring. We have some exciting things on our roadmap for 2021 and look forward to sharing some of these soon!
Before we wrap up, a few biggest learnings and tips you’d like to share with fintech innovators and leaders?
The best advice I have received from Fintech leaders that could not be more true is constantly be learning, and watch the M&A deals. This will tell you what the markets are demanding, and where you should ensure not to miss.
Richard Formoe is the Chief Revenue Officer at QuickFee