Organisations that prioritise customer needs over profit have generally garnered more of the latter than organisations solely focusing on profit. But why? Times are changing, and we are now in a consumer-driven world. Understanding their preferences is a must.
In line with this, Brightwell, the cross-border payment solution provider, has published a whitepaper that breaks down five user preferences and trends that are set to transform the cross-border payments landscape.
The global digital remittance market size was valued at £19.65billion in 2022 and is expected to expand at a CAGR of 15.6 per cent from 2023 to 2030. With such large growth at stake, businesses must ensure they fully understand how to tap into this potential revenue.
There are three recurring themes throughout Brightwell’s whitepaper: The Changing Consumer: 5 Trends Shaping the Cross-Border Payment Landscape, which will enable businesses to do so. These are speed, flexibility, and seamlessness.
Accounting for growing remittance needs
Brightwell highlights how attitudes towards remittances have evolved. It explains that for many, remittances are a crucial source of income for families living abroad. Although they can afford to travel to visit them, 71 per cent prefer using digital services to send money.
The whitepaper further highlights the troubles associated with cross-border payments. Naming speed as one of the biggest hindrances to its adoption, Brightwell explains how foreign-born workers in the UK must be able to have an avenue to send money to foreign banks. A seamless solution has to be integrated.
One example of a company taking action is Dash Solutions. At the beginning of March, Brightwell announced a new partnership with payments program manager Dash Solutions, formerly known as Prepaid Technologies. The partnership aims to strengthen the latter’s services by providing remittance services and full-time fraud prevention, utilising Brightwell’s ReadyRemit and Arden solutions.
Predicting and providing consumers’ desires
As previously noted, we are now living in a consumer-driven world. So much so, that organisational loyalty is on very thin ice. According to the whitepaper, 45 per cent of consumers will switch brands if their needs are not met.
Speed is, one of if not, the most important thing consumers consider today. They expect instant payments. The whitepaper acknowledges the payment services available to transfer funds within a country itself but then compares this to the severe lack of cross-border services. It further highlights the issues surrounding SWIFT, and how overcoming hurdles that are faced using this service will reap great rewards for organisations.
Avoiding cart abandonment
While speed is a key factor organisations must consider, they must also ensure their services do not create obstacles for consumers. Research from Plaid found that a poor payment experience would see a necessary shop abandoned. In fact, 62 per cent would avoid shopping somewhere where they previously had a bad experience.
Not all hope should be lost though. Technology focusing on increasing a streamlined payments experience is being developed; namely, embedded finance. The whitepaper breaks down the impact the technology has had on the payments ecosystem. It further explains how it can help organisations understand consumer preferences better, and tailor to them.
The Covid-19 impact on remote work
Love it or hate it, remote working is here to stay. Brightwell highlights the importance of flexibility for an organisation to thrive. Following the pandemic, many looked to live abroad. However, the development of remote working has meant employees can work for organisations across the globe. All from the comfort of their own homes.
From a payments perspective, while sending remittances to foreign countries must be considered, payment avenues must be created for US citizens living abroad, looking to work remotely in the US.