Picture this: You’re piloting a spaceship, charting a course through the vast expanse of the business universe. It’s uncharted territory, with a landscape that’s constantly shifting and changing. As the captain of your ship, your goal is to navigate through the galaxy of payment processing, a critical component of your business operations. But don’t fret, you’re not alone. You’ve got a trusty co-pilot – this article. Welcome aboard, space explorers! Whether you’re a vape seller looking to process payments as smoothly as your customers’ exhales, a medical marijuana prescriber seeking to ensure your patients’ transactions are as therapeutic as their prescriptions, or a CBD product retailer trying to make your payment processing as stress-free as your products, this guide is for you. It’s also a valuable tool for hemp product sellers, marijuana testing providers, and debt collection agencies. In the world of payment processing, you’re all astronauts in the high-risk sector, but that doesn’t mean you’re destined for a rough ride. In the vast cosmos of business, payment technologies are the shooting stars, streaking ahead and transforming the way we conduct transactions. They’re not just shiny objects; they’re critical tools for any business, especially those in high-risk industries. In this article, we’ll be your interstellar tour guide, leading you through the top 10 payment trends to watch in 2023. Think of it as your cosmic GPS, helping you navigate the ever-changing universe of payment processing. Ready to embark on this journey? Buckle up and let’s blast off into the future of payments!

Digital Wallet Trends: A Space Odyssey

Much like our dependence on a trusty smartphone, the use of digital wallets is becoming second nature. In 2021, digital and mobile wallets accounted for nearly half – yes, you read that right, half – of online transactions worldwide. That’s like saying every other customer at a global online marketplace pulled out their digital wallet at the checkout counter. And guess what? This trend is only set to increase, with the use of digital wallets projected to make up 53% of online transactions by 2024. Beam us up, Scotty!​¹​. But this digital odyssey doesn’t stop at convenience. As we navigate through the vast universe of online transactions, security is our North Star. Enter biometric authentication, our trusty co-pilot in this journey. Biometric authentication, which relies on unique identifiers like our face, fingerprint, or retinal data, is becoming the security standard for these digital wallets. It’s like having a bouncer at the entrance of your digital wallet, checking the ID of anyone who tries to get in. This becomes even more critical as we venture into the realm of cross-border payments, where digital wallets are making complex international payment systems easier to navigate¹​. Let’s not forget about our fellow travelers on this journey – peer-to-peer digital wallets, with Venmo leading the pack. As of mid-2022, Venmo’s Total Payment Volume had increased by 20% year over year, reaching a whopping $240 billion. It’s like Venmo threw a party and everyone showed up – especially the younger, more social, and mobile crowd. In fact, 28% of Venmo users are aged between 18 and 29, and another 30% are aged between 30 and 39. Talk about being the life of the party!​¹​. As we move forward in this digital age, the trend toward digital wallets is clear. So, whether you’re a vape vendor, a CBD retailer, or a medical marijuana doctor, it’s time to hitch a ride on this digital spaceship. The future of payment processing is here, and it fits right in the palm of your hand.

Buy Now, Pay Later” Trends

Have you ever been in a store and found yourself absolutely smitten with a shiny new gadget or a fashionable piece of clothing that’s just a smidge out of your budget? In the old days, you’d have to either abandon your coveted item or grit your teeth and suffer the dent in your wallet. But times have changed. Today, you can simply choose to “Buy Now, Pay Later” (BNPL). Imagine that shiny new gadget or a stylish piece of clothing now within your grasp, split into manageable, interest-free installments. Sounds like a dream, right? Well, it’s not just a dream. It’s a rapidly growing reality. The BNPL model has surged in popularity, growing by an estimated 2400% from 2019 to 2022. This impressive growth is not restricted to a specific age group either. While Gen Z and Millennial generations currently make up around 75% of BNPL users in the US, Gen X and Boomers are quick to catch up. It’s projected that they will make up about one-third of BNPL users by 2025. That’s like saying your parents are starting to use your favorite slang words. Surprising, but true! Of course, with great power comes great responsibility (yes, we did just quote Spiderman). The significant growth in the BNPL sector has caught the attention of regulatory bodies like the Consumer Financial Protection Bureau (CFPB). Starting from December 2021, the CFPB has begun monitoring the BNPL market, hinting at possible regulations in the future. For businesses, especially those in high-risk industries, this means staying vigilant about complying with these potential new rules. For businesses in the vaping, recreational or medical marijuana, CBD, hemp, and testing industries, this trend presents an opportunity and a challenge. The opportunity lies in attracting customers with flexible payment options, while the challenge involves navigating potential regulations and ensuring compliance. But no worries! As long as you stay informed and agile, you can turn this trend to your advantage. After all, who doesn’t like the idea of getting their cake now and eating it later?

Mobile Payment Technology Trends

As our world becomes increasingly interconnected, mobile payment technologies continue to evolve and shape how we conduct transactions. This rapid growth in mobile payments is being driven by three primary trends:

1. Smartphone Usage for Purchases: With the ubiquity of smartphones, it is no surprise that 65% of all US consumers made a purchase using a smartphone in the past year. This reflects the broader global trend of a shift towards mobile transactions, enabled by advancements in technology and the widespread adoption of smartphones. As smartphones continue to become more integrated into our daily lives, we can expect the use of mobile payment technology to grow correspondingly.
2. Contactless Technology: The COVID-19 pandemic has accelerated the adoption of contactless technology as consumers sought safer, touch-free ways to conduct transactions. Tap-to-pay has emerged as a top contactless payment method in countries like the U.K., U.S., France, and Australia. Contactless credit cards, equipped with a chip that allows wireless data transfer when tapped over a payment terminal, have seen a significant increase in popularity. This technology combines the convenience of credit cards with the speed and security of contactless transactions, making it an attractive payment option for many consumers.
3. QR Codes: QR codes present another secure, contactless payment option. These codes can be encrypted and used to securely connect to payment technology systems. The proliferation of QR codes across various establishments, from clothing stores to restaurants, reflects their increasing acceptance in the commerce sector. A survey found that 59% of respondents believed that QR codes would become a permanent fixture in their mobile payment practices.

These trends highlight the dynamic nature of the mobile payment landscape and the ways in which technology is being leveraged to improve transaction efficiency and security. However, this is just the tip of the iceberg, and we can expect to see more exciting developments in mobile payment technology as we progress through 2023 and beyond¹.

Digital Currency Trends

The arena of digital currencies continues to demonstrate significant potential for growth and innovation. Key to these advancements is the use of blockchain technologies. These technologies offer consumers increased efficiency, transparency, and security, all without the necessity for traditional financial institutions. The competitive edge of blockchain technologies lies in their ability to provide low transaction costs and generate record revenues. The blockchain market is projected to expand to over 39 billion U.S. dollars by 2025. This growth is expected to be driven by the increased acceptance of digital currencies as legal tender by more governments and central banks. As the industry transitions into a more standardized and regulated era, we can anticipate further stabilization of the market. The growth of retail e-commerce sales, forecasted to increase by 14.55% in the US and 11.35% worldwide between 2022 and 2023, is another area where digital currencies could play a significant role. As a seamless and secure online payment method, digital currencies can support and even accelerate this growth. However, it’s important to note that as the landscape of digital currencies continues to evolve, so too will the trends. Keeping a close eye on these developments will be essential to understanding and navigating the future of digital currencies.

Social Commerce Trends

Social commerce, the convergence of social media and e-commerce, is revolutionizing the way businesses connect with customers and drive sales. This emerging trend is predicted to grow three times faster than traditional e-commerce, with global sales projected to more than double from $492 billion in 2021 to a staggering $1.2 trillion by 2025, according to a report from Accenture. In the United States alone, social commerce sales are expected to reach $45.74 billion in 2022. One key trend shaping the social commerce landscape is the utilization of employee advocacy. Brands are recognizing the power of their own workforce as creators and influencers on social media platforms. By tapping into the authentic voices and networks of their employees, companies can leverage their influence to promote products and engage with consumers. This approach not only enhances brand authenticity but also strengthens employee engagement and fosters a sense of pride and ownership among the workforce. Employee advocacy in social commerce allows companies to expand their reach and connect with consumers in a more personalized and relatable manner. Employees become brand ambassadors, sharing their experiences and insights with their networks and promoting products or services with genuine enthusiasm. This approach adds an element of trust and credibility, as consumers are more likely to trust recommendations from people they know or feel connected to. As social commerce continues to evolve, brands are also exploring innovative strategies to enhance the shopping experience. From integrating shoppable content within social media platforms to leveraging user-generated content and influencer collaborations, businesses are finding creative ways to capture the attention and interest of their target audience. By embracing social commerce and leveraging employee advocacy, businesses in high-risk industries can establish a strong online presence, drive customer engagement, and boost sales. However, it’s important to stay informed about emerging trends and adapt strategies accordingly to stay ahead in this dynamic landscape.

Protecting the Core

In the ever-evolving landscape of payment processing, businesses must prioritize protecting the core of their treasury management functions. This involves optimizing financial operations to ensure no money is left on the table amid economic uncertainty and rising interest rates. By safeguarding the core, companies can enhance their financial stability and maximize working capital. One area of focus for businesses is their supply chains. The disruptions caused by the pandemic and other external factors have highlighted the importance of resilient and efficient supply chain management. To protect the core, organizations are adopting practices such as localizing supply chains, nearshoring, and creating buffer stocks of essential components. These strategies help mitigate the risks associated with global disruptions, such as chip shortages or geopolitical conflicts, and ensure a smoother flow of goods and services. Furthermore, businesses need to optimize their working capital operations in an environment of high-interest rates and inflation. It is no longer an option to leave money idle or trapped in low-interest-bearing accounts. Treasurers should explore opportunities to free up trapped liquidity and consider investing it in high-interest-bearing accounts. As the cost of external financing increases, internal financing through leveraging idle cash can be an attractive option for high-priority lines of business. Technology plays a vital role in protecting the core. Treasury management systems and other financial technologies enable organizations to streamline and automate core treasury functions, increasing efficiencies and reducing the risk of errors. Cashflow forecasting tools provide real-time insights into liquidity management, credit control, and reconciliation. Cross-border FX payment solutions facilitate efficient management of global payment flows and mitigate liquidity challenges. By protecting the core and optimizing treasury management functions, businesses can navigate economic uncertainties more effectively and position themselves for long-term success. The ability to adapt and optimize working capital operations is crucial in high-risk industries where financial stability is paramount.

Treasury as an Influencer

In today’s rapidly changing business landscape, the role of treasurers extends beyond traditional financial operations. Treasurers now have the opportunity to become influencers within their organizations, leveraging their payments expertise and access to data to drive growth and innovation. Treasurers play a crucial role in identifying and executing strategies that support the organization’s growth and evolution. By advocating for necessary requirements and innovations, treasurers can drive incremental revenue and enhance the financial back-end of the business. They bring a unique skill set and knowledge base to the table, making them valuable contributors to strategic decision-making processes. Technology is a key enabler for treasury as an influencer. Advanced treasury management systems and fintech solutions provide treasurers with the tools and capabilities to optimize their operations and offer innovative payment solutions. Here are some examples of how technology empowers treasurers to become influencers:

1. Cashflow forecasting: Advanced forecasting tools enable treasurers to anticipate cash inflows and outflows more accurately. This allows for better reconciliation, credit control, and decision-making based on a continuous flow of funds.
2. Cross-border FX payments: Global scalability of businesses brings the challenge of managing liquidity in different currencies. Treasury technology solutions facilitate cross-border FX payments, allowing treasurers to access localized currencies and aggregate them into centralized liquidity management pools.
3. Wallet solutions: Treasurers can leverage wallet solutions equipped with flexible payout options and real-time reconciliation to streamline and scale payouts. These solutions offer virtual sub-ledgers that simplify and enhance the payment process for various stakeholders.

By embracing technology and leveraging their expertise, treasurers can elevate their role as influencers within their organizations. Their ability to provide valuable insights and drive innovation in payment processes and financial operations is crucial for sustainable growth and success. As treasurers continue to evolve in their role as influencers, it is important for organizations to provide them with the necessary support and resources to stay at the forefront of technological advancements and industry best practices. This will enable treasurers to maximize their impact and contribute to the overall success of the business.

Innovation Through Ecosystems

In today’s interconnected business landscape, organizations are finding new avenues for growth and success by embracing the concept of ecosystems. An ecosystem refers to a network of interconnected businesses, partners, and customers that collaborate to create value and drive innovation across industries. To stay competitive and attract new business opportunities, organizations must prepare for the massive potential offered by creating and expanding ecosystems. The financial services sector plays a vital role in elevating these ecosystems and enabling businesses to thrive within them. One key aspect of innovation through ecosystems is the concept of embedded banking. Embedded banking involves integrating financial services seamlessly into the products, services, and experiences offered by non-financial businesses. By embedding payment capabilities, businesses can provide a frictionless and seamless customer experience, creating value and driving incremental revenue. Embedded banking has the potential to transform industries and generate significant revenue. According to forecasts, the space of embedded banking is expected to generate $11 billion in revenue by 2026. This highlights the growing importance of financial services in supporting ecosystems and enabling businesses to leverage the power of payments as a catalyst for growth. Furthermore, the creation of ecosystems offers opportunities for collaboration, partnership, and innovation across industries. By bringing together businesses from different sectors, organizations can leverage their collective strengths and expertise to drive new product offerings, enhance customer experiences, and unlock new revenue streams. Ecosystems foster an environment of collaboration and co-creation, where organizations can tap into the collective intelligence and resources of their partners to accelerate innovation. Innovation through ecosystems requires organizations to think beyond their traditional boundaries and seek opportunities for collaboration and integration. By embracing financial services and payment innovations, businesses can position themselves as key players within ecosystems, unlocking new business models and revenue streams. As the business landscape continues to evolve, organizations must keep a pulse on industry trends, forge strategic partnerships, and embrace a mindset of continuous innovation. By embracing ecosystems and leveraging financial services, businesses can navigate the ever-changing landscape and position themselves for sustainable growth and success.

The Stellar Finale: Embracing Payment Processing for High-Risk Industries!

As we reach the end of our cosmic journey through the world of payment processing in high-risk industries, it’s clear that the landscape is ever-evolving. We’ve explored the top payment trends to watch in 2023, from the rise of digital wallets and “Buy Now, Pay Later” models to the growth of mobile payment technologies and the potential of digital currencies. For businesses in vape, medical marijuana, CBD, hemp, marijuana testing, and debt collection, understanding and adapting to these trends is crucial. Embracing digital wallets can provide convenience and security, while BNPL offers flexible payment options. Mobile payment technologies and digital currencies open up new opportunities for growth and innovation. In this vast universe of payment processing, staying informed and agile is key. By keeping a finger on the pulse of industry trends, forging strategic partnerships, and embracing innovation, businesses can navigate the high-risk sector with confidence. So, fellow space explorers, take this cosmic guide as your trusty companion as you chart your course through the ever-changing galaxy of payment processing. Together, we can boldly navigate the challenges and seize the opportunities that lie ahead. Buckle up, embrace the future of payments, and let your business soar to new heights! Safe travels, and may your payment processing journey be filled with success and prosperity! Source(s): ¹ Payment Technology Trends to Watch in 2023 | PayPal US