Finix Homepage
Blog

Infographic: The Future of Payments is Frictionless

In today’s digitized world, the payment process plays an integral role in the customer experience—especially for SaaS companies.  Consumers expect a frictionless experience throughout every touchpoint of their journey—and this is a driving trend across all industries. The demand for exceptional service presents new and unique challenges for platforms as they seek a competitive edge in their vertical.

What many companies are starting to see is that the payments experience is part of the problem—but also part of the solution. By taking steps to control the payments process, software platforms can provide a seamless, branded experience and earn revenue from each transaction. This infographic explores the current trends in payments and how they can help you exceed your customer expectations.

Trend #1: Consumers expect frictionless experiences

Consumers expect frictionless experiences in everything they do, and that extends to how they pay. Anything considered outdated, slow or cumbersome will hinder growth rates.

Trend #2: Consumers are rapidly moving away from cash payments

The rapid decline of cash and traditional payments (check, money order, etc.) have triggered SaaS companies to integrate payments into their platforms at unprecedented rates.

Trend #3: Growth in card-not-present (CNP) transactions (credit and debit)

CNP transactions (i.e. entered online, typed into a terminal, etc.) have seen significant growth in recent years as consumers and businesses continue to move toward a more digitized experience.

Trend #4: The role of artificial intelligence (AI) in payments and the customer experience

AI is becoming an integral part of how businesses operate across industries—including customer service and product innovation. This is especially true when it comes to compliance and fraud.

Trend #5: Growing reliance on technology in the workforce

Online products and services have become a necessity in the workforce, and the growing reliance on technology is changing how B2B companies interact with their customers. This is especially true for SaaS and small and mid-sized businesses (SMBs). With this widespread technology usage comes lucrative revenue opportunities for SaaS platforms that integrate payments and cater to the SMB segment.

Trend #6: Increase in revenue for platforms processing payments

Just as SaaS companies are now seeing the need to improve their payments experience, they’re also seeing the revenue opportunity from integrating payments into their platforms.

Sources

  1. Experience is Everything: How to Get it Right.” PWC, 2018

  2. Tina Kyriacou 2018-07-03, et al. “Payment Processing: Integrated vs. Non-Integrated: Lightspeed Pos.” Lightspeed, 14 Dec. 2021

  3. “46 Cart Abandonment Rate Statistics – Cart & Checkout.” Baymard Institute, 2021

  4. “Integrated Checkouts Are the Future for Software.” Paysafe, 2019

  5. “Payments, Processors, & FinTech: If Software Is Eating the World…Payments Is Taking a Bite.” Credit Suisse, 2020

  6. “Payments 2025 & Beyond.” PwC, 2021

  7. Best, Raynor de. “US: Payment Methods in Retail 2021.” Statista, 22 Apr. 2022

  8. "The Federal Reserve Payments Study." Federal Reserve, 2019

  9. "Payment Processing: Payments Market Share Handbook Twelfth Edition," J.P. Morgan, 2021

  10. “2021 Debit Issuer Study White Paper.: Debit’s Transformation Accelerates Debit’s Transformation Accelerates,” Pulse

  11. Visa Inc. “Visa Prevents Approximately $25 Billion in Fraud Using Artificial Intelligence.” Meet Visa. A Network Working for Everyone., Visa Inc, 17 June 2019

  12. Anna Frazzetto,. “5 Ways to Reduce Compliance Costs with AI and Automation.” CIO, 24 May 2022

  13. “Big Data and AI Executive Survey 2021.” New Vantage Partners

  14. “PWC 2022 AI Business Survey.” PwC

  15. Diaz, Ariel. “71+ SAAS Statistics & Trends for 2020.” Vendr, 17 Aug. 2020

  16. Diaz, Ariel. “SAAS Spend Optimization for Finance Departments.” Vendr, 11 Nov. 2019

  17. 2021 Small Business Profile. U.S. Small Business Administration. 2021

  18. “AppDirect Small Business Software Trends Report 2021: Opportunities in an Era of Rapid Digital Disruption.” AppDirect. 2021

  19. “Software as a Service (SAAS) Market Size, Share & Covid-19 Impact Analysis, by Deployment Type (Public Cloud, Private Cloud, and Hybrid Cloud), by Application (Customer Relationship Management, Enterprise Resource Planning, Content, Collaboration & Communication, Business Intelligence & Analytics, Human Capital Management, and Others), by Industry (BFSI, Retail & Consumer Goods, Healthcare, Education, Manufacturing, Travel & Hospitality, and Others) and Regional Forecast, 2021-2028.”

  20. Goel, Vaibhav et al. “New Trends in US Consumer Digital Payments.” McKinsey & Company

  21. "Senant, Y, et al. All In for Growth." Global Payments, 2021.

  22. “Shopify Announces Fourth-Quarter and Full-Year 2020 Financial Results.” Shopify Press Room, 17 Feb. 2021

  23. “Toast Announces Fourth Quarter and Full Year 2021 Financial Results.” Toast POS

  24. "Fighting Fraud with a Model of Models." KPMG and Nets, 2020

Read More

More Resources

There’s a lot to learn about payment processing. Get all the information you need to make thoughtful decisions about your payments strategy.