How Fintech enables eCommerce
The financial technology industry has continued to evolve, helping many businesses and customers alike easily manage their finances.
Over the past decade, FinTech companies have built solutions that have supported the growth of the eCommerce industry, improving sales, customer transactions, business banking and many more. However, it is important to know what FinTech solutions are the best fit for your eCommerce business.
Unlike traditional financial services, FinTech companies provide products and services that bring businesses closer to their customers from mobile check deposits to money transfers, online purchases and online banking in general. These companies use different technologies such as cloud computing and advanced software programming to drastically improve the services rendered by traditional financial institutions.
Traditional banking systems involve numerous manual processes that can wear out customers. Thus, it comes as no surprise that more technology-driven FinTech solutions have received a warm reception from their target market and continues to streamline how businesses obtain and manage their finances.
Several FinTech products are being leveraged by various eCommerce businesses today, one of which is consumer financing. Consumer point-of-sale financing allows customers to purchase products and pay for the cost of them over a specified period. While credit cards offer nearly the same benefit, consumer financing provides customers with much more flexibility. For instance, there are no intense credit pull, and in some cases, no interest whatsoever.
Another advantage of FinTech solutions in the eCommerce space is digital banking. Many businesses and customers today now rely on digital banking channels to perform different transactions due to the many advantages it provides over traditional banking. For example, if you want to play at Canadian online slots, you can easily deposit without having to deal with extra fees.
Depending on what channels you market your products or services on, you can gain access to that channel’s financing solution. For example, if you trade with either Shopify or Amazon, they have a FinTech solution that enables their top sellers to gain access to financing. That way, you get enough cash inflow to keep your business running and to enable you to scale up quickly.
A new technology that is equally revolutionizing the financial technology industry is blockchain. This technology is a unique type of database that is commonly used to keep accurate records of financial transactions such as a contract, shipment, or money transfer.
A blockchain acts as a sort of public ledger since it stores every data in blocks that are then bound together in chronological order. The ‘block’ refers to the data that gets stored and then it is now ‘chained’ to a preceding block. One major advantage of this technology is that it promotes transparency and integrity as every information store is permanent, time-stamped and can be viewed by anyone.
If you currently run an eCommerce business, it is important to review your current processes and see just how you can improve them using a FinTech solution.