Digital payment technology is sweeping through the consumer space globally thanks to ApplePay, GooglePay, AliPay, WeChat Pay, Paytm and others. But there’s a revolution in the industry, too, as innovators like Stripe and Square—to name just a few of fintech’s shining stars—are helping businesses across a wide range of sectors modernize and reshape their sales channels.
A consequence of the progress in the digitization of consumer payments is that business-to-business customers also increasingly want the same experience. Moving to self-service, frictionless payments is a winning strategy for firms looking to lower cost of sales and retain customers.
Shipping
Logistics, supply chain and transport sectors are ripe for digital transformation. But what makes these industries so attractive from a transformative payments technology perspective—global operations, complex supplier networks, and high transaction volumes—also represent significant obstacles for leaders tasked with driving change. Many businesses are aware that they need to modernize, but for established companies – some of which have been trading for more than a century – traditional ways can be difficult to abandon.
One example is the container shipping giant Maersk, founded in 1905, which today operates in 130 countries. Until recently, the company’s payment processes were fragmented, based on a number of systems. But digital solutions have enabled the firm to unify its financial operations and brought the company into a modern era. According to Stripe, Maersk’s global partner on the digital transformation, the container shipping giant is now able to offer customers the option to pay by credit card, which sheds light on the challenges that have been established for a long time.
But that’s not to say that the only people benefiting from digital payment technology are legacy firms looking to update systems that have become outdated. Companies on the bleeding edge also need payment services.
Blockchain
Customers looking to fund their crypto wallets need a way to convert fiat currency (money issued by decree such as US dollars or British pounds) into Bitcoin, Ether or other digital tokens. To solve the problem, companies are using payment APIs to build electronic checkouts that give customers a wide range of financing options, including ApplePay and GooglePay. Also important are the verification tools offered by partners. These include machine learning (ML) algorithms that are trained to detect and block fraud based on large datasets representing millions of transactions. Blockchain.com and FTX are just a couple of examples of cryptocurrency firms using ML services to analyze payments and validate new customer onboarding.
Artists and galleries
Providers of digital payments can often find themselves at the interface between the old and the new. And such examples can be found in the art world – a sector undergoing rapid digital transformation. Online payments help reduce human errors that can occur with manual inventory and invoicing. Streamlined financial services also open the door to digital ledgers such as Startbahn’s Startrail infrastructure that allows galleries to encode artwork purchases using blockchain to keep track of when images change hands. Innovative solutions can breathe new life into established markets, and help companies to differentiate themselves from their competitors. In tough times, digitally enabled functions can prove to be critical for businesses.
Agriculture
By 2021, Stripe reportedly processed more than $1 billion in payments on behalf of agricultural businesses around the world. One of the big trends was the creation of digital platforms that enabled farms to deal directly with shoppers. The facilities provided a lifeline for agricultural business owners when sales to restaurants, wholesalers and other regular customers were interrupted due to pandemic restrictions. As life returns to normal, these new sales channels have endured, bringing welcome income to farmers. Digital payments can also uncover prospects elsewhere.
Automotive
Car manufacturers are experts in pricing and leave no stone unturned when it comes to opportunities for cost efficiency. Recently, Toyota – one of the world’s largest car companies – used digital payment APIs to build a marketplace called Mechacomi that makes it easier for workshops to exchange tools and equipment. The platform will help increase the utilization of highly specialized car tools that can only be used occasionally by owners. Features of the system include the ability for sellers to make deposits to secure purchases and facilitate a variety of final payment options.
Digital payments providers are supporting auto companies in other ways as well, helping dealers build online sales channels as the auto market expands to accommodate buyers who want to shop for their cars online. Other sales trends include the rise of car subscriptions, which in turn can be supported by digital payments. And OEMs are busy working on commerce platforms, backed by firms like Stripe and others, that will be needed to underpin the success of electric vehicles by making it as easy for drivers to pay for battery charging as it is to buy gas day. Eliminating pain points for customers is an important part of digital payment solutions.
Construction
The smart Billd offers contractors a financing line that allows them to purchase materials and pay labor costs before receiving payment for their contract work. “We pay your supplier, you pay us. It’s that simple,” says the slogan on Billd’s website. The company has a number of web-based tools aimed at the construction industry and is yet another example of how digital payment technology is making its way into the industrial landscape.
