Clue: this business function also helped countless people to survive self-imposed or mandated lockdowns with a small measure of normalcy…
During the past two years of pandemic panic, many peoples around the world could not exchange cash even if they had plenty on hand. There were even concerns about paper money being a transmission vector of COVID-19.
Fast forward to now, and enterprises and consumers have defaulted to digital payments to bridge the gaps left by lockdowns, mandates, biosafety concerns, supply chain expediencies and if nothing else, for the utility and convenience of e-commerce.
According to Yuval Ziv, President, Nuvei, digital payment methods also contribute to lower carbon footprints than cash. DigiconAsia.net also received a regional update on e-payment trends in the region from him…
DigiconAsia: Do you foresee digital payments becoming so widespread that salary checks become a relic?
Yuval Ziv (YZ): While checks have value for some companies, payments are becoming increasingly digital around the world. With more businesses and consumers paying digitally, the shift to real-time payments between people, businesses and banks continues as well. Electronic payments have become the norm.
Part of that shift is due to innovation and digital payments technologies addressing how businesses and people prefer to be paid. It also reflects their concerns about the energy, time and environmental impact of producing paper checks and processing them.
DigiconAsia: What is the best incentive for a business to adopt digital payment technology?
YZ: The ability to accelerate their business. The payments processing industry has changed so much in recent years to the point where even the notion of what payments processing is has changed.
In the past, payments were considered to be a cost center. Now, payments can be revenue drivers. We are seeing payment managers taking part in high-level strategic discussions, interacting with marketing departments and helping craft initiatives that target new customers and seek to beef up loyalty with existing customers.
That shift comes in tandem with the fact that there is much more data available now than just a few years ago. It has become easier to drill down and gain visibility into acceptance rates and the end-user experience.
DigiconAsia: What are obstacles to digital payment remain in the region?
YZ: The payments landscape in the region is very fragmented: what works in one place often falls well short of the right payment approach in another country, even if it is less than a few hundred miles away.
That is why businesses that are expanding in the region want more options on their terms. They are looking for payment methods that work for both today and the future, in terms of core business needs such as multi-region payment methods, compliance, and so on.
Importantly, some business leaders are very forward thinking when they look at how to position their firms for the years ahead. Digital payments transformation, when done well, covers every aspect of payments that a business touches, whether it is B2B, B2C or bank-to-bank.
As well as commercial considerations, there are cultural, regulatory and connectivity challenges. In this respect, the APAC region is a global leader. If businesses and consumers can be digitally connected faster, the things they can do when it comes to being able to pay or do e-commerce become much more integral to their lives.
DigiconAsia thanks Yuval Ziv for sharing digital payments insights.
