Understanding the evolving payments landscape is increasingly crucial for the direct selling industry to remain competitive and attract new field members. Financial technology, or FinTech, is a key player in payments processes as it integrates technology into offerings by financial services companies to improve their use of delivery to consumers.
PayQuicker President Charles Rosenblatt shared his insights on the intersection between FinTech and the direct selling market at the Direct Selling Association’s annual meeting in June. Click here to watch his panel discussion on Understanding the Evolving Payments Landscape.
The FinTech payments landscape has been evolving rapidly and will continue to evolve in the coming years. Following are major trends to note that are relevant to the direct selling industry.
Not everyone has the same access to financial services, such as credit, banks and technology. There are individuals in your field who are underserved when it comes to financial access and freedom. FinTech allows for everyone to be treated equally with the ability to get a bank account, debit card, and immediate access to funds at the same cost and with no credit check in most cases. The direct selling industry can leverage FinTech solutions to provide financial inclusiveness with new payment options for their underserved field members.
Global Payments Made Local
Another major trend to note is how the FinTech space is breaking down the walls of international payments. Traditional banks can only send money to banks, which does not allow them to cover all the needs of the field. In developing countries, more and more people need access to digital payment methods. Through FinTech solutions such as digital cards, eWallets, crypto, and wires, global payments are being made local.
The direct selling industry is made up of several different generations, who all want to get paid differently. Each generation is likely to use payment methods they grew up with in their formative years. From Baby Boomers and Gen X preferring paper checks to Millennials and Gen Z adopting digital payments through Apple Pay and Venmo, one similarity exists across all generations: the importance of speed. People expect to get paid quickly, no matter what method it is through. Direct selling organizations need to be in tune with changing trends across generations in order to keep their field satisfied and motivated.
Technology Trends in Payments
Despite the rise in crypto and eWallets across the globe, people today are still using cards and banks for the vast majority of their payments needs. According to the FIS Worldpay 2021 Global Payments Report, credit cards and debit cards will still make up 32.8% of global e-commerce payment methods in 2024. Digital and mobile wallet transactions will, however, take the lead with 51.7% of global e-commerce transactions. It is important for direct selling organizations to keep up with payments trends to ensure they are leveraging the best tools and technologies for their field.
It matters how you pay your field just as much as the amount your pay your field. FinTech enables choice and democratization of payments across the globe, allowing flexibility and creating financial inclusiveness. These trends in the FinTech space are indicative of key areas direct selling organizations need to focus on when it comes to payments to ensure there are no gaps in any point in the value chain.
A seasoned innovator in the payments industry, Charles Rosenblatt has held executive leadership positions at major global banks such as Capital One and Chase, as well as prominent FinTech organizations. After having been on the management teams that led to the sale of Hyperwallet to PayPal and Payoneer going public, Rosenblatt is now President at PayQuicker — the payments technology leader in global payouts.
PayQuicker is an innovative global financial technology company that provides its corporate and consumer clients with a robust payments and treasury platform. Since 2007, we have been revolutionizing payouts, allowing businesses of any size to offer instant payouts across 214 countries in 39 major currencies via secured bank accounts with prepaid debit cards, virtual cards, and mobile wallets. PayQuicker leverages its award-winning solutions to serve the diverse needs of clients across industries, and has become the largest global payout provider to Direct Selling organizations.