According to Alan Safahi, a Fintech expert and San Francisco-based start-up founder, Fintech B2B and B2C payments play a crucial role in how companies and customers pay, move, store, invest, borrow, save, and protect money.
FinTech stands for financial technology that aims to automate, enhance, and streamline financial services. Alan Safahi Orinda says that Fintech can help companies, businesses, and consumers to restructure and manage their financial operations.
Fintech
utilizes machine learning algorithms, data processing tools, and
specialized software to integrate, tokenize, and automate payment
infrastructures, leading to increased flexibility and reduced risks.
Read on!
B2B Fintech: According to Safahi,
digital payments’ transaction value increased from $4.1 trillion to
$5.2 trillion in the last two years. Undoubtedly, digital payments are a
major driving force of the financial sector. The total transaction
value will reach $6.7 trillion by 2023, with a compound annual growth
rate (CAGR) of 12.8%.
Safahi says Fintech payment solutions have
high demands for the B2B companies. The B2B Fintech sector focuses on
software-as-a-service (SaaS), empowering retail sellers, insurance
companies, banks, and other financial institutions to streamline their
payments.
Unlike B2C, B2B Fintech is more common for tech
companies and retailers who want to do business online. However, Safahi
argues that the financial services industry is one of the most prominent
groups to utilize B2B Fintech payments.
B2C Fintech Alan
Safahi Orinda has done substantial research on B2C Fintech, focusing on
B2C solutions that focus more on products and services, especially
those offered by banks. Safahi says that B2C Fintech payment strategies
including different aspects, such as checking and saving accounts,
personal loans, retirement savings, credit cards, personal financial
management, and online payments.
Besides, B2C Fintech payment
solutions integrate all these services into a single platform, such as
an entire digital-only bank, leading to more secure and reliable
transactions. Bear in mind that B2C Fintech has a diverse audience
because these solutions suit everyone’s needs.
According to
Safahi, younger people are the major groups that use B2C Fintech payment
solutions. These include millennials and the generation-Z that are more
familiar with the internet and SMART technologies, making them
comfortable with online finances and transactions.
Moreover,
recent reports show that B2C Fintech companies also target kids and
teenagers to promote financial education and literacy. The purpose is to
streamline processes and create customers for the future.
Final Words
Safahi’s
extensive research and experience in the Fintech industry gives us
valuable insights on financial services and relevant technologies. Safahi
recommends companies focus more on Fintech financial literacy, allowing
the average person to understand the concepts of B2B and B2C payments
and enable them to use more tech.
Remember, Fintech B2B and B2C
payment solutions are changing the world in 2021. Although the industry
has yet to become mainstream, B2C and B2C Fintech are well-established
payment solutions for over 20 years.
The Fintech industry targets
to reach over two billion people worldwide without traditional B2B and
B2C payments, such as bank accounts. The purpose is to allow businesses
and consumers to access financial services without needing banks and
institutions.
Originally Posted: https://alansafahi.weebly.com/blog/fintech-b2b-vs-b2c-payments
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