— We experienced a spike of interest from the industries we rarely heard from before. DIY and home appliances were looking to connect to their customers while the stores had to close their doors. Veterinary clinics needed infrastructure to settle bills and make appointments online. The restaurants needed to reshape to accommodate food delivery requirements and growing amounts of online payments. Entertainment and Ed segment as well as conferences completely moved online. All these companies were looking for a reliable paytech partner that would allow them to focus on business development leaving acquiring, accounting and mutual settlement related headaches behind.
Many new marketplaces started operation during the pandemic. As with any other boom in the past the best projects will remain standing, yet the overall amount will decrease. What will significantly help new marketplaces to stay afloat is a fine-tuned financial supply chain.
— Of course, a part of the industries will go back offline after the pandemic is over. There are still some tactile experiences people aren’t ready to give up. But it is important that the current situation influenced consumer behaviour and forced business to change.
Will the payment industry have to change to accommodate this growing demand?
One thing is certain though, the classic format of user-bank interaction will be reshaped, especially in Europe.
— The banking structure out there is fairly old, and many transactions that are still made offline. You have to go to the bank to pay utility bills, to make local and international money transfers, to manage your account.
Fintech companies will step in to fix this. Projects like xpate will create convenient interfaces, focusing on building a payment user-experience, and will interact with banks through an open API. Big companies will replace classic interfaces with convenient applications. Monopolists, such as VISA and Mastercard, will also adapt to new technical requirements. More and more data will be stored online, so fintech companies will be able to operate faster and in a more flexible manner. All these innovations will take place in the next 2 years. Banks will be involved in more complex business processes such as lending and factoring. Of course, they will remain centers of funds storage.
Whenever new tech enters the scene there’s often safety concern. Will this be the case?
3D-Secure protocol, used by VISA and Mastercard, plays a big role in the security of card transactions on the Internet. But it also negatively affects transaction conversion rate, since a large number of payments are rejected. We are looking to solve security problems in an alternative way. Thanks to our entrepreneurial mindset we’ve managed to reengineer 3D-Secure processes to increase conversion up to 30-40% and yet achieve an even higher security level than industry standard average.