Innovations in Commerce

While the pandemic has slowed and life is returning to normal, the digital shift is here for good — along with the innovation era it ushered in, writes Jared Kernodle, chief revenue officer at Kount, in the PYMNTS eBook “Endemic Economics: 32 Payments Execs on the ‘Next Normal’ That Never Happened.” Amid that shift, two major innovations have taken the payments space by storm: cryptocurrency and buy now, pay later (BNPL).

Few things have changed the landscape of the digital payments and eCommerce space as much as the COVID-19 pandemic. Essentially overnight, merchants and consumers shifted almost exclusively to digital commerce. While the pandemic has slowed and life is returning to normal, the digital shift is here for good and will continue to grow — along with the innovation era it ushered in. Two major innovations have taken the space by storm: cryptocurrency and buy now, pay later (BNPL).

Cryptocurrency has made a big splash in the industry in a short time, with adoption ranging from investment portfolios to an everyday payment method. Even with its popularity, the widespread acceptance of cryptocurrency has challenges. Similarly, BNPL payment options are expanding the payments industry and dramatically shifting the consumer’s relationship with credit.

The ease of use and flexibility of BNPL and crypto options are especially attractive to consumers who appreciate immediate access to goods, predictable payments and no interest or added fees. Looking at market trends and growth, consumers want the convenience and benefits of a frictionless commerce experience.

The three major credit bureaus announcing their inclusion of BNPL data in a consumer’s credit is a significant advancement that has the potential to boost credit scores for those newer to credit or trying to rebuild their credit score. While there are still risks and areas for improvement with BNPL, inclusion of BNPL data in credit profiles will help create staying power.

These innovations show that how we used to pay and how we will pay in the future are changing. Cryptocurrency and BNPL are bridging the gaps and changing how consumers buy overall, providing the flexibility and transparency necessary in the current commerce landscape.

In the digital commerce age, it is about more than just data validation of components in a transaction; it is linking data to tell the history and persona of the customer to better understand what type of relationship that you as a merchant want to build with them.

Now is the time for businesses to take a proactive approach to digital payments. Staying ahead of the curve with a modern, secure and holistic digital strategy will not only weed out fraudsters but also help you get to know your customers, their purchasing power, and how best to accommodate their buying preferences. Keeping up with their payment trends and needs increases your revenue and puts you ahead of the pack.