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Uber and others see a long road for pandemic payment habits

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The initial adoption wave that mobile and contactless payments have ridden during the first months of the coronavirus pandemic is likely to continue as companies adjust business models to make embedded payment methods a key part of their strategy.

Earlier this month, Uber Technologies agreed to acquire Postmates in a $2.65 billion all-stock deal to expand its food delivery services — and help offset the loss of ride-sharing revenue because people are sheltered at home. It represents significant transformation for the payments industry in that it further pushes consumer habits’ toward digital, embedded payments.

“Uber buying Postmates is a big splash and it matters in the payments world because it is one more situation that will force people to use their digital wallets, and not cash, for food items,” said Ryan Patel, senior fellow with the Drucker School of Management.

“It’s another example of people getting more comfortable with digital payments,” Patel said during a recent Worldpay/FIS webinar on global payments trends. “It foreshadows a lot of different things, in that knowing how you integrate payments technology for the end user is super important.”

Uber may not have its plan for Postmates in place just yet, but “if Uber wants to be successful and more profitable, the payment has to be really smooth,” Patel said. “You can’t just throw it into Uber Eats and wish everyone is going to be able to do it. Many companies go ahead and enter a partnership, but don’t make the ordering and payment any smoother for the end user.”

When taking into account the economic hardships the pandemic has created for merchants and consumers, another payment trend — the concept of buy now, pay later — is likely to become increasingly popular in e-commerce and multi-channel scenarios.

As an indication of its growing popularity, more than 130,000 merchants worldwide offer Klarna instant financing. Klarna raised $460 million in funding last year to push the Swedish company’s valuation to about $5.5 billion.

Ultimately, the buy now, pay later model is going to become a “have to have” service for merchants, said Kevin Hennessy, vice president of strategic solutions at Worldpay/FIS.

“When thinking about the different demographics over time, layaway payments have been extremely popular for more than 40 years, but the popularity waned some recently and credit card debt has gone up exponentially over time for a lot of people,” Hennessy said.

It is likely that Generation Z consumers, who are more comfortable in sharing information, will view the buy now, pay later option as a tool for responsible spending, Hennessy said.

“This is not a debit instrument or a credit instrument,” he added. “This is for when you don’t want to put yourself in a position to have bad credit card debt, while pushing healthier spending.”

As other companies like Affirm, Afterpay and Splitit bring different installment payment models to the point of sale or e-commerce checkout, merchants will have to determine what works best for them based on market demographics.

According to the latest Worldpay Global Payments Report, the buy now, pay later option has become 2.8% of the e-commerce market worldwide, growing quickly and forecast to be at $165 billion by 2023 in e-commerce alone.

Countries with the fastest growing use of buy now, pay later are those that had a percentage of transactions handled with that method in 2019, according to the report. Sweden was at the top at 25%, with Norway at 13%, while Argentina, Finland and the Netherlands each had 8% of its e-commerce transactions through that payment method. Belgium was at 6% and Denmark at 7%.

Others projected to grow in 2020 because of the pandemic include the U.K. at 3%, Japan and France at 2% of transactions as buy now, pay later; and the U.S. at only 1%.

Overall, the move toward digital payments in North America is likely to double over the next few years, putting the U.S. and Canada on tracks similar to what the Asia and Pacific regions have enjoyed. More than 70% of transactions in China currently come through a digital wallet, the report noted.

“Over the last six months, we have seen the trend change, as one in four transactions in the U.S. are now through a digital wallet, and one in five in Canada is digital,” Hennesy said. “We will see this double in the next few years.”

Even though the COVID-19 pandemic has been a devastating health crisis and a major blow to global economies, it is not time for merchants to feel that all is lost.

“Do not leave money on the table and don’t be saying you can’t do something because of technology,” Patel said. “This is the time to try something. Things are changing and you can’t expect it to go back to normal, and we don’t know what it all means right now.”

As much as anything, merchants and consumers alike can’t be thinking that brick and mortar retail is dead. It is not, Hennessy said, but it is changing. “It’s a digital acceleration and you just have to be smarter about the omnichannel experience,” he added.

“Be smart about handling customer profiles and targeted ads, and allowing flexibility for returns in the store, and having considerations for buy now, pay later for Generation Z,” Hennessy said.

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Pima Supes address eviction protections

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TUCSON, Ariz. (KGUN) — Economic fallout from COVID has cranked up concerns about evictions as tenants have trouble paying. There are Federal protections to reduce evictions in the pandemic but Pima County Supervisors are concerned about evictions that could bypass those safeguards.

Federal restrictions from the Centers for Disease Control restrict evictions if they could increase health risks in general— or the risk of spreading COVID because someone is put out of a home. Those protections are based on whether someone has trouble paying the rent.

Landlords and their lawyers spoke at this week’s Supervisors meeting. They say compared to keeping a tenant, an eviction is a loss for everyone. They want county rental assistance programs to move much faster to channel Federal grants to help tenants pay rent and help landlords cover their expenses.

Steve Huffman of the Tucson Association of Realtors reminded Supervisors tenants will still have to pay back rent and if they can’t it could hurt them long term.

“Many of them have huge judgments that will be issued against them eventually they will owe back rent for the time that they have not been paying rent, those judgments will create bad credit, and will interfere with future housing opportunities, and also future job opportunities.”

Tenants who create other problems beside non-payment or rent can still be taken to court and evicted.

But Pima Supervisors are concerned about reports of people evicted over questionable claims like a car parked in the wrong space or a toilet clogged too many times.

Chairperson Sharon Bronson says these eviction issues are focused by COVID but call for a broader look at how people become homeless.

“We are addressing basically the pandemic issues right now, but this may be, you know, an opportunity to just began the discussion about the larger discussion about homelessness and addiction down the road.”

Supervisors agreed to ask an existing task force on evictions during COVID to take a fresh look at eviction issues, especially in light of possible policy changes under the Biden Administration.



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Loans Bad Credit Online – PNC Personal loan 2021 Review | Fintech Zoom

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Loans Bad Credit Online – PNC Personal loan 2021 Review

Top perks

Low minimum loan amount

Customers can borrow $1,000 to $20,000. That minimum loan amount of $1,000 is unusual in the personal loan industry. A low minimum threshold means you can get the cash you need to cover small emergencies without being tied down to a larger loan.

Wide range of repayment terms

You have between 6 and 60 months to repay the loan. There are pros and cons to longer repayment terms, so this flexibility allows you to customize your term to your situation.. With PNC, you have the option of designing a repayment plan that fits your monthly budget.

Joint applicants welcome

Whether you need a joint applicant’s high credit score to qualify for a lower loan interest rate or someone has decided to co-assume responsibility for a personal loan, PNC allows for joint applicants.

What could be improved

Terms depend on location

The first thing you will be asked is where you live. On its loan homepage, PNC states that “PNC product and feature availability varies by location.” While this may be good news for borrowers in some areas of the country, it could be bad for others. You’ll need to see what it means for you.

Lowest interest rate reserved

If you’re looking to borrow enough to make repairs to your roof or buy a new furnace, you might not borrow enough to qualify for PNC’s lowest advertised interest rate. That’s because that low interest rate is reserved for those borrowing more money. For example, PNC will automatically assign a $5,000 loan a higher interest rate than a $15,000 loan.

Loans Bad Credit Online – PNC Personal loan 2021 Review

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Loans Bad Credit Online – Loans Bad Credit Online – PNC Personal loan 2021 Review | Fintech Zoom | Fintech Zoom

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Loans Bad Credit Online – Loans Bad Credit Online – PNC Personal loan 2021 Review | Fintech Zoom

Loans Bad Credit Online – PNC Personal loan 2021 Review

Top perks

Low minimum loan amount

Customers can borrow $1,000 to $20,000. That minimum loan amount of $1,000 is unusual in the personal loan industry. A low minimum threshold means you can get the cash you need to cover small emergencies without being tied down to a larger loan.

Wide range of repayment terms

You have between 6 and 60 months to repay the loan. There are pros and cons to longer repayment terms, so this flexibility allows you to customize your term to your situation.. With PNC, you have the option of designing a repayment plan that fits your monthly budget.

Joint applicants welcome

Whether you need a joint applicant’s high credit score to qualify for a lower loan interest rate or someone has decided to co-assume responsibility for a personal loan, PNC allows for joint applicants.

What could be improved

Terms depend on location

The first thing you will be asked is where you live. On its loan homepage, PNC states that “PNC product and feature availability varies by location.” While this may be good news for borrowers in some areas of the country, it could be bad for others. You’ll need to see what it means for you.

Lowest interest rate reserved

If you’re looking to borrow enough to make repairs to your roof or buy a new furnace, you might not borrow enough to qualify for PNC’s lowest advertised interest rate. That’s because that low interest rate is reserved for those borrowing more money. For example, PNC will automatically assign a $5,000 loan a higher interest rate than a $15,000 loan.

Loans Bad Credit Online – PNC Personal loan 2021 Review

Tags: Loans Bad Credit Online

Loans Bad Credit Online – Loans Bad Credit Online – PNC Personal loan 2021 Review | Fintech Zoom

Tags: Loans Bad Credit Online

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