Smeetha Ghosh, CEO & Co-Founder of Cashee – a digital banking platform that empowers the youth to develop money-management habits walks us through the various trends in payment methods, their implications on brands and advertisers engaging in commerce, and the necessity of building secure and trustworthy payment journeys.
From the early days of bartering goods using barley as token money to minting of heavy coins and finally printing banknotes, the evolution of payment methods has come a long way. History bears witness to the continuous adaptation of payment systems to better serve consumers’ needs. The future of commerce cannot be defined without a synopsis of the current landscape of payments. As fintech solutions continue to revolutionize the financial world, we spoke to Smeetha Ghosh, CEO & Co-Founder of Cashee. This digital banking platform empowers the youth to develop money-management habits. She walks us through the various trends in payment methods, their implications on brands and advertisers engaging in commerce, and the necessity of building secure and trustworthy payment journeys.
In image above: Smeetha Ghosh, CEO & Co-Founder of Cashee
Navigating the ongoing transformation.
Latest research claims the use of e-wallets will increase by 52.5% by 2025, worldwide. By comparison, bank transfers, credit cards, and debit cards merely accounted for 7.4%, 13.2%, and 21% respectively. The growing use of e-wallets can be attributed to several factors. Beyond convenience, it signifies the consumer’s evolving needs and the speed at which consumers continue to embrace the seamless integration of technology in commerce. According to Ghosh, the pandemic also elevated the importance of e-wallets, offering a safer and more hygienic alternative to other conventional payment methods. “Offering users unparalleled convenience & versatility, e-wallets can securely store multiple payment methods and facilitate swift transactions; they have become indispensable tools,” she says. She further identifies the proliferation of mobile payment apps, which have democratized financial management, empowering users to conduct different kinds of transactions directly from their smartphones. “From transferring funds to paying bills, these apps offer a comprehensive suite of features, including peer-to-peer transfers and budgeting tools.” Adding to the list of trends, Ghosh cites the massive shift to embedding biometric authentication methods such as fingerprint or facial recognition. “These are increasingly being integrated into payment systems, offering not only enhanced security but also a frictionless authentication process, thereby redefining the payment experience.”
Consumer preferences.
“Consumer preferences have undergone a notable shift in favor of more convenient and secure payment methods,” explains Ghosh. “This evolution in payment preferences has big implications for brands and advertisers in the region.” A study commissioned by Mastercard finds that 85% of users in the Middle East have used at least one new payment method in the last year. With each country in the GCC adapting to a new set of local payment methods, digital payment adoption rates are on the rise. For instance, in the UAE, 16% of 18–24-year-olds prefer digital wallets, compared to 9% of 25–34-year-olds. With this data at the helm, Ghosh urges businesses to accommodate digital payments as they can cater to the preferences of modern consumers and enhance their overall customer experience. “With Cashee, I am always mindful of building solutions for Gen Z, who are our primary target audience. This generation has grown up in a digital-first world, and businesses need to start recognizing their needs and including digital payment solutions if they want to stay competitive with this audience,” she says.
Cashee is transforming the money management practices of Saudi Arabia’s Gen-Z, offering seamless transactions on smartphones. With the parent’s app facilitating effortless allowance transfers to the child’s app, Cashee allows both online and in-store payments through Apple Pay. Additionally, users can save towards specific goals and anticipate forthcoming features.
When it comes to advertisers, she iterates how understanding these shifting preferences allows for more targeted marketing strategies. “Ad campaigns can be tailored to highlight the convenience, security, and other benefits associated with digital payment methods, resonating with consumers who prioritize efficiency and ease of use. Digital payment methods offer valuable data insights that can help create informed advertising strategies. Analyzing transaction data can provide advertisers with a deeper understanding of consumer behavior and preferences, enabling them to create more personalized and effective campaigns.” Like most sectors, the financial industry is undergoing significant transformation. With over 800 start-ups registered in 2023 and revenues expected to increase from a mere $1.5 billion in 2022 to approximately $4.5 billion by 2025, the fintech market in the Middle East is expanding. Ghosh encourages brands to leverage this expansion through long-term partnerships. Uber’s success story stands witness to this observation. By partnering with various fintech solution providers, the brand has revolutionized transportation by introducing cashless payments through its mobile app. Citing a regional success story,
Ghosh mentions Careem, “While building a super-app, they are providing users with the convenience of paying bills, splitting bills, conducting peer-to-peer transfers, and more.”
“Fintech solutions and e-wallets enable brands to offer a seamless and convenient customer experience. Brands that prioritize user-friendly interfaces and hassle-free transactions can differentiate themselves in a competitive market, driving customer satisfaction and loyalty through collaboration with these fintech companies and payment providers. By leveraging insights into consumer spending habits and preferences, brands can deliver targeted promotions and offers, effectively engaging their target audience,” she adds.
Ghosh identifies six ways in which brands can leverage fintech payment solutions to enhance customer experience:
Streamlined Payment Processes: Fintech innovations in payments can help streamline the customer experience by reducing friction in the purchasing process, making it faster and more convenient for customers to complete transactions.
Personalized Offers and Rewards: Fintech innovations provide brands with valuable data insights into customer behavior and preferences. By leveraging this data, brands can deliver personalized offers, discounts, and rewards tailored to individual customers. This not only enhances the customer experience but also fosters loyalty.
Loyalty Points and Cashback: Through fintech solutions, brands can offer loyalty points, cashback rewards, or digital coupons that are seamlessly integrated into the payment process. By incentivizing purchases and rewarding customer loyalty directly within the payment experience, brands can encourage repeat business and increase customer retention.
Multi-channel Integration: Brands can offer a seamless multi-channel experience, enabling customers to make payments across various touchpoints, including online, mobile, and in-store. By providing consistency and continuity across channels, brands can enhance the overall customer experience and improve customer relationships.
Customer Support: Fintech solutions enable brands to provide responsive customer support directly within the payment interface. Whether through chatbots, instant messaging, or real-time assistance, brands can address customer inquiries and resolve issues promptly, enhancing satisfaction and loyalty.
Advertising in the Payment Space: Brands can integrate advertising into fintech-powered payments by blending promotional content into payment platforms, ensuring it feels natural and doesn’t disrupt the user journey. By using fintech data, brands can deliver targeted ads that resonate with users, based on demographics, preferences, and transaction history, enhancing the overall experience. Giving users the choice to opt-in for advertising within the payment process reduces disruption, ensuring ads enhance rather than detract from the user journey.
What can you do before choosing the right payment solution for your brand?
According to Ghosh, it’s crucial to align your brand’s purpose with your target audience’s preferences before introducing the right payment solution.
Market Research: Brands should conduct market research to understand their target audience’s payment preferences. This includes demographic profiling, behavior analysis, and surveying customer preferences and expectations.
Monitoring Fintech Trends: Given the rapidly evolving fintech landscape, brands should stay abreast of emerging payment trends and technologies.
User Testing and Feedback: Before implementing new payment methods, brands should conduct user testing and gather feedback from their target audience. This ensures that the chosen payment methods meet the expectations and preferences of customers and align with their user experience needs.
Partnerships and Collaborations: Collaborating with fintech partners and payment service providers can provide brands with valuable insights and expertise in selecting and implementing payment methods. Leveraging partnerships can help brands tailor their payment strategies to better align with their target audience’s preferences and behaviors.
Building trust.
With the increasing reliance on fintech-powered payments, ensuring security and building trust with consumers comes as a given when embedding new payment methods. “In an age where data privacy and security are big concerns, brands and advertisers must prioritize the security of digital payment systems. Building trust with consumers by ensuring strong security measures can strengthen brand reputation and foster long-term customer relationships,” according to Ghosh.
Deloitte finds that in fear of the persistent threat of hacks and scams, more consumers are taking protective actions. Consumers are quick to set up two-step authentication turn off location and Bluetooth connections and even install security software to protect themselves from data breaches. The report defines how 67% of smartphone users worry about data security and privacy on their phones.
As a solution, Ghosh urges brands to “utilize encryption and tokenization technologies to secure payment data. Encryption ensures data is unreadable to unauthorized parties, while tokenization replaces sensitive information with unique tokens, minimizing the risk of data breaches.” To add an extra layer of trust, she encourages “implementing multi-factor authentication.” This requires users to verify their identity using multiple authentication factors. “Real-time monitoring and threat detection systems help detect and respond to suspicious activity promptly, while regular security audits and employee training ensure proactive measures are in place to address vulnerabilities and strengthen overall security,” concludes Ghosh.
The article was first published in Communicate's Issue 180 2024.
