One of the fastest changing landscapes of business is that of Financial Technology, commonly known as Fintech. With ever-upgrading rules and legislation to unpredictable laws, the money market has always been a real-head scratcher in terms of trend predictions. Fintech has been a key driver in revolutionizing financial services and payments modules owing to dynamic consumer expectations and need of the hour solutions.
One huge reason behind the majority of businesses and suppliers making a shift towards Fintech has been the ongoing Covid-19 crisis that has the world in its grasp. With more and more offices asking their employees to work from home, non-traditional methods of payments have seen a meteoric rise. Digital payments in India are scaling new heights since the last few years. In the year 2020, 48 billion digital transactions were recorded in India alone, and this trend is expected to grow at the same rate over the years to come.
Below is the infographic that showcases 5 key areas that will be the trend-setters of the payments space in India. Innovations in digital payments and dedicated payments systems seem to be one of the 5 leading trends of 2021.
Finance teams have opted to switch to digital payment platforms for ease of processes. While bank transfers have already been accepted in the financial world now, commercial cards are relatively new kids on the block who are quickly gaining popularity worldwide. Incumbents in this field were initially worried by fintech rapidly climbing the charts. Although this worry was soon put to rest as it was essentially found that 75% of fintech founders claimed that their goal is to partner with key players in the banking industry rather than to challenge them. Owing to this, the majority of large and mid-sized companies are already enroute the highway of change. However, it still remains a challenge to make commercial cards lucrative enough for each business.
While there could be many reasons for resistance towards adopting this technology, let's also take a look at the numerous benefits that you could enjoy while adding commercial cards in your business payments portfolio.
When you offer something new to your partners, you gain an advantage over your competitors. Commercial cards give your business a massive boost as it denotes ease of payments, increased spend limits, virtual assistance and real-time updates in payment structure- all at the touch of a few buttons.
With great power comes great responsibility! Commercial cards are primarily used for business expenditures. Such cards come with their own set of risks which can be mitigated in an earlier stage itself so that a risk does not convert into a potential threat. Commercial cards can be customized with preset limits, can be authorized to work only at selected outlets and to be accepted only by selected vendors, as deemed fit by the company's finance team.
Paper cheques and bank transfers come with their package of value-added inefficiencies. These payment methods require manual intervention at all points and can be rejected due to errors. These operational roadblocks are conveniently eliminated by commercial cards, making them a smart choice to keep the cash-flow steady.
One of the most daunting scenarios for suppliers worldwide is that of payments receipt. Bank transfer and other paper-based payments take days owing to manual processes associated, sometimes weeks, to process from the banks. This can stall the much-needed cash-flow to keep the business' engine running. Offering commercial cards as an accepted mode of payments can easily resolve this issue, all the while keeping you updated with the changing payments trends in the market.
To make your business grow, having a diverse portfolio of products and services is not all that you need. In today's economy, you also need to offer a diverse portfolio of accepted payment methods. Allowing commercial cards as a mode of payment catapults you on the top of the list of tech-savvy businesses. And you know what they say: Always in sight, always in mind!
A change that is well explained is a change that is well received. Inform and guide your suppliers and stakeholders through this switch and educate them as to why commercial cards are all the rage right now. Keep the door open for queries and allow them to easily sink into this change rather than forcing them into it.
It is important to know your company's Accounts Receivable and Accounts Payable structure in-depth in order to include commercial cards in the portfolio of accepted payment methods. Evaluate your goals and then distill down to a card program that works best for your business. Ensure that your purchase department is up-to-date with this add-on as they will be doing all the heavy lifting for your business. Important factors like where the cards can be used, will they be used on an individual basis or on a team or department basis, the kind of expenses that can be done on it- all these questions need to be answered before they arise.
Make commercial cards simple to accept. Stick to your payment terms and pay your suppliers on time. Ensure that your vendors, suppliers and sellers are open to accepting payments via commercial cards and, in the process, denote the ease of usage, quicker payments and faster operations.
It all comes down to picking the one that works best for you and your business. There are multiple commercial cards providers in the market vying for your attention. Choose the one that meets all your requirements and even more. EnKash is a powerful commercial cards provider and offers a wonderful Multiple Payments, Single Platform feature that simplifies payments.
EnKash has a host of technology-driven and innovative solutions that are guaranteed to act as a catalyst for your growing business. A card program should simplify your APs and ARs and we, at EnKash, are always happy to help in doing just that!