This post is part of MassTLC’s 2023 Thought Leadership series on Trends.
As digital payments evolve, they are creating more opportunities for companies to use payments to enhance their bottom lines. These business advantages can range from creating more value for software platforms to helping businesses get paid faster and improve their cash flow. As you look to make payments a strategic priority in the coming year, here are some of the emerging trends that should be top of mind to maximize the return on your payments investments:
The Rise of Embedded Payments & Embedded Finance
Embedded finance is the integration of a financial service into a non-financial business or platform, and embedded payments are one of the most commonly embedded financial services. For software providers, embedding payments into their platforms creates more value by offering a stickier customer experience that improves retention rates.
- According to 451 Research, only 13% of merchants use embedded payment processing services from one of their primary software vendors, but 75% wish they could
- Software companies that embed payments into their platforms see up to a 5-time increase in revenue per customer
For software platforms interested in this trend, they should partner up with an embedded payments provider with expertise and technology that can support them as they grow their payments business.
AR Automation Improves Timely Payment of Invoices
Accounts receivable automation allows businesses to streamline and speed up their invoicing and payment processes. Manual AR processes can negatively impact cash flow and reduce the stability of a company’s bottom line, so automation is a crucial tool for protecting the income that keeps a business healthy.
BlueSnap conducted a global survey of executives to find out if and how businesses are adopting AR automation and the impact of doing so. We found that while few businesses have implemented true automated AR, the ones that have realized significant benefits.
- 53% of companies that automated their AR improved cash flow
- 67% improved customer satisfaction
- 56% saw better customer retention
While many businesses have made some effort to automate parts of their accounts receivable process, they can still automate more and reap those rewards.
eCommerce payments have evolved over the last two years to accommodate shoppers’ changing preferences and the current market. Buy Now, Pay Later is continuing to grow in popularity and is gaining traction for B2B payments:
- According to a survey by the Ascent, 50% of consumers have used Buy Now, Pay Later (BNPL) services
- 45% of BNPL purchases would have otherwise been outside of the buyer’s budget
- eCommerce retailers that offer BNPL have 2.1% higher conversion rate on average, based on a SimilarWeb analysis
In support of this growing trend, BlueSnap further enhanced our partnership with Splitit to strengthen the BNPL options available to merchants and their buyers. Consumers aren’t the only ones to benefit from BNPL. In fact, global B2B payments and invoicing network TreviPay announced its partnership with BlueSnap to release the industry-first global payments solution that offers both trade credit and card payment processing with consolidated reporting.
Global eCommerce Expansion
Many companies are continuing to expand into new markets to increase their sales.
- Cross-border eCommerce now accounts for 22% of purchases (or $3.53 Trillion) in 2022, according to Statista
- Invesp’s research finds that 67% of global consumers shop abroad because of lower prices outside their companies
BlueSnap has long helped merchants get the most out of international sales by optimizing their cross-border payments. And, we are always improving those efforts. BlueSnap has partnered with Dalenys and made multiple appointments to the EU Board of Directors to support growth in the European market. BlueSnap was also chosen as KeyBank’s partner in providing cross-border eCommerce functionality to their middle market and institutional clients in the eCommerce space.
Cryptocurrency Headed Mainstream
Cryptocurrency is a somewhat controversial topic, but for many retailers, it’s part of the future of payments. With new companies allowing businesses to accept crypto payments while eliminating risk for themselves, it is becoming easier than ever to accept crypto payments.
- According to Deloitte, 75% of retailers plan to accept cryptocurrency payments in the next two years
- Forrester found that crypto customers spend 2X more than customers paying by card
BlueSnap announced a partnership with BitPay, the world’s largest provider of bitcoin and cryptocurrency payment solutions for businesses. Our customers can now accept and receive payments in all the leading cryptocurrencies.
We are expecting a lot of change and innovation for digital payments in the new year and beyond. At BlueSnap, we are always looking for ways to use these innovations to help you get the most out of your payments.
This post was originally published by BlueSnap.