Consumers in Brazil are embracing their digital wallets for making payments. Almost half of consumers use them for paying bills, for example. Surprisingly, it is the country’s baby boomers and seniors who are the most active digital wallet users when paying bills — and for online shopping. In fact, 31% of baby boomers in Brazil paid for an online purchase using one of these wallet. In contrast just 20% of Generation Z and 25% of millennial consumers in Brazil did the same.

Consumers in Brazil are also exploring how these wallets can be a trusted for non-transactional purposes. In fact, they are doing so at a much higher rate than their peers in other countries. For example, 34% of consumers in Brazil expect to verify their identity using a digital wallet in the next three years. This suggests that the Brazil market is ready to use these wallets to hold IDs and other documents.

These are just some of the findings detailed in “Digital Wallets Beyond Financial Transactions: Brazil Edition,” a PYMNTS Intelligence and Google Wallet collaboration. This report examines consumer perceptions and use of digital wallets in the last year and into the future in the Brazil market. It draws on insights from a survey of 2,101 consumers in Brazil conducted from Jan. 11 to Feb. 5.

Inside “Digital Wallets Beyond Financial Transactions: Brazil Edition”:

• What tasks consumers in Brazil are completing using these wallets
• Which generations are using these wallets the most
• How consumers in Brazil are using these tools for identity verification
• Use cases for events and ID needs
• What share of consumers in Brazil predicts using these wallets for accessing events will become the norm

Once consumers have used a digital wallet to store credentials or show their IDs, most are satisfied with their experience. Download the report to learn more about what’s next for these wallets in Brazil.

This report is part of a series exploring how consumers in various major economies are using digital wallets. Check out the archive to learn about how usage in Brazil compares to other countries.

The post Boomers Go Digital: The Surprising Rise of Digital Wallets Among Brazil’s Older Consumers appeared first on PYMNTS.com.

“At the end of the day,” Sara Craven, general manager of Visa’s solutions Authorize.net  and Verifi told PYMNTS CEO Karen Webster in the latest PYMNTS SMBTV installment. “The consumer experience has to be flawless. There is no room for error.” 

Even charities aren’t exempt. They are, after all, big businesses on their own, with the Bureau of Labor Statistics’ most recent data putting nonprofits at 10.2% of all employment in the U.S. And just like the for-profit businesses that they transact with, consumers don’t usually care where the payment is being processed, as long as things are secure and predictable — and everyone can see, right alongside the digital receipt of their transaction, including who they’ve purchased from, when and exactly what they are getting.

As Craven noted in a conversation on where tech is taking us on PYMNTS SMB TV program, payments, in general, need to be simple. The rise of mobile wallets suggests that data pop up instantly, and a consumer can initiate a charge, all with a few clicks. Get it wrong, and consumers can vote with their feet.

That’s especially true, said Ronald Pruitt, the president and founder of 4aGoodCause, when it comes to charitable giving. As an online donation platform, 4aGoodCause helps nonprofits by providing the software that enables monthly giving via the subscription model. Donors can automatically give each month to the charity of their choice.

But, “Subscriptions are always a risk,” he told Webster. A donor can choose to cancel their subscription at any time. Sometimes a payment interruption comes when a card expires.

The continuum of enrollment and keeping donors enrolled (and donating) is critical, as most of the charities that work with 4aGoodCause are small nonprofits and are led by their founders or have fewer than 10 employees. They don’t have the resources to handle the complexities of payments, so they’ve partnered with Pruitt’s platform, gaining enterprise-level tools to help keep their nonprofits thriving.  

Embedded Finance for Donors

4aGoodCause, for its part, has worked with Authorize.net to outsource the routing of transaction data and embed flexible payment options for nonprofits to allow donors to pay with their preferred method. 4aGoodCause leverages Authorize.net’s Advanced Fraud Detection Suite to help identify and prevent potentially fraudulent transactions. 

The information collected and recorded by 4aGoodCause includes donor-level data, spanning the payment and card-level insight, that increases the lifetime value of the nonprofit relationship underpinned by the platform. The donor gets a financial record that lets them help manage their recurring subscriptions.

“We have a full subscription dashboard for the nonprofits,” Pruitt said, “where they can see the lifetime value of the donor.”

Keeping Donor Momentum

Mobile wallets, Pruitt said, have reached an inflection point, where more of 4aGoodCause’s eCommerce came from those payment options than via consumers inputting their details manually.

“I’m telling our nonprofits,” he said, “that they’ve got to look at their donation forms and make sure they are taking mobile wallets.” He noted that the joint efforts with Authorize.net’s eCheck, and Account Updater allow the transaction and checkout processes to be more forgiving, help boost conversion rates across the platform, and help to lift nonprofits’ donation volumes. The account updater settings also alert the nonprofit to reach out — before transactions fail.

“The donor [may not have intended] that payment problem,” he said, “so it’s your job to hold their hand and pull them back on track. That keeps the giving going.”

With embedded payments and better security in the mix, said Pruitt and Craven, there’s the opportunity to, as they put it, know your customer — to cater to their payment preferences, to know that they are who they say they are, and to keep the recurring subscription model robust. There’s also the opportunity to “nudge” subscribers to participate in one-time fundraising events or consider an extra one-time gift.

Looking ahead into 2025, Craven noted that AI will be a mainstay as new functionalities and features will lead to what she termed “more intuitive payments,” including voice-activated donations.

“Data and analytics are going to become even more of a key focus … [for the payments industry],” she said.

The post Tech for Good: Boosting Nonprofit Success With Digital Payments and Subscription Models appeared first on PYMNTS.com.

The Deposits integration into the Ingo Payments platform will create a modern, bank-grade, money movement platform that connects “money in and money out” functionality with an embedded, proprietary “money stack.” Ingo Payments now gives bank and non-bank issuers new plug-and-play capabilities to fund and monetize existing account relationships or to establish new virtual ones — by turning payments into new feature-rich accounts.

“This was literally a missing piece in our [platform] that powers the money in and money out [of an account],” Ingo Payments CEO Drew Edwards told PYMNTS CEO Karen Webster in an exclusive interview. “I’ve talked many times about how an account, a bank or a wallet is a place to store money, but in today’s world it must be easily created and funded digitally. It’s also a place to spend money from, and there’s risk associated with it. You have to be really good at risk management. With this combination, we get the part in the middle. That’s what Deposits has built: a modern money stack for ledgering and issuing accounts, now in the middle of the Ingo Payments money mobility platform.”

The “money stack” is relevant for banks as well as corporates that see an opportunity to turn a payment into an account that becomes the basis for a relationship with that customer. The Deposits software simplifies that for issuers because of its low-code or no-code platform, cloud ledgering, APIs and single sign-on systems — all of which simplify how banks and corporates track transactions in and out of those accounts.

“We can deliver all of those capabilities in a complete set of APIs and tools that make it easy to deploy new feature-rich accounts. And that’s what we mean by money stack,” Deposits CEO Joseph Akintolayo said. “We mean all the layers that you need to get to market in an efficient and meaningful way backed by our history, risk management, our know-how capabilities and our compliance. We see this as an awesome path toward the future.”

Edwards said the acquisition will amplify the capabilities Ingo Payments already provides to a diverse set of industries, including banking, FinTech, lending, hospitality, insurance, gaming and trucking.

From Great Idea to Go Live

Edwards used the example of a restaurant to describe the new Ingo Payments platform capabilities.

More than 90% of restaurants still pay out cash tips at the end of a worker’s shift. Consider a restaurant that would like to eliminate the friction associated with cash payouts and pay directly and instantly into a worker’s bank account. Edwards said that with the Deposits acquisition, Ingo Payments will expand the available options to include new instant-issue accounts for workers that open up new revenue streams and opportunities to make it more cost effective for the restaurant and the worker.

He pointed out that Ingo already powers some of the top restaurant operating systems in market today — the cloud ledgering that will now be integrated with inbound and outbound payments, as well as new accounts and complex money flows within this multilayer ecosystem, can be tracked seamlessly.    

In this use case, digital tipping becomes the baseline for a new branded account that simplifies payouts for the restaurant operator, enabling a true cashless experience that is also portable as the worker changes jobs. Edwards emphasized that it also turns what was formerly cash in an envelope into a new relationship with that worker and an ecosystem among the restaurants that becomes the basis for monetizing payments in new ways.

Future-Proofing Money Movement and Money Stacks

The Ingo Payments/Deposits integration creates a proprietary and modern money stack that brings together core and non-core capabilities — such as digital experiences for embedded account creation, ledgering, funding accounts, accessing accounts, risk management and compliance — as part of a money stack that exists inside of the Ingo Payments money mobility platform.

The platform is “processor-agnostic, core-agnostic and open-banking-agnostic,” helping banks and corporates leverage the power of creating new feature-rich, account-based relationships that meet modern consumer expectations. These include receiving money from relevant form factors, including checks, and sending money to relevant destinations including P2P, Me2Me and bill payments.

Edwards and Akintolayo use the term “proprietary” to mean, “ownership,” and with that the reduction in the number of third- and fourth-party integrations and partners that banks and corporates have to manage from a risk perspective. 

“You can’t outsource the core responsibilities of banking,” Edwards said. “Banks are ultimately accountable for compliance, whether they use third parties or not,” adding that the Ingo Payments platform with Deposits minimizes reliance on external partners, reducing the complexity and risks associated with compliance, and allowing banks to maintain tighter control over their operations.

Reducing the number of “layers and players,” and especially those that Edwards and Akintolayo consider core, makes the money movement and the money storage components easier for regulators, easier for banks, easier for even FinTechs to manage and to do it right, he emphasized, something that Ingo has been doing successfully for more than 20 years.

The Modern ‘Core’

Edwards also noted the potential for Ingo to now solve a big problem for banks, which is modernizing legacy infrastructure.

“It’s our point of view that the bank is at the center of the banking side of this,” he told Webster. “One of the things that we see changing is more and more financial institutions adopting a platform like ours for their own use, for their own direct customers, not just their FinTech partnerships. Everything from account creation to managing incoming and outgoing funds can be upgraded.”

Ingo Payments’ new Deposits capabilities reduce the barriers to entry for banks and corporates handling the heavy lifting of compliance, regulatory requirements and technical aspects. The platform offers ready-to-use, customizable components that require minimal to no coding skills, tailored for financial technology applications such as receiving payments, storing money and managing disbursements.

Banks and corporates can quickly launch financial services that are specific to their needs without forcing a one-size-fits-all solution. It focuses on compliance and customization, Akintolayo said, allowing businesses to translate their brand and values into the digital financial world.

“This changes everything for the ‘legacy’ economy,” Akintolayo explained.  “And it will give them the ability to catch up to the modern financial experience revolution. It’s what consumers expect today, and it’s what small businesses expect today in a digital, embedded world.”

The post Ingo Payments Acquires Deposits Inc. to Redefine Money Mobility for Banks and Corporates appeared first on PYMNTS.com.

Outdated payment systems can create cash flow challenges, while digital payments offer streamlined processing, enhanced operational efficiency and improved customer experience.

The PYMNTS Intelligence report “Getting Paid: Digital Payments for Improving Cash Flow and Customer Experience” examined how digital payments are reshaping accounts receivable (AR), offering insights into reducing days sales outstanding (DSO) and building stronger business relationships.

Outdated Payment Methods Hinder AR Efficiency

Despite the growing adoption of digital solutions, many businesses still rely on outdated payment methods, such as paper checks. This dependence continues to create issues for AR management. According to the report, 75% of organizations still use paper checks, despite their high costs and inefficiencies. The manual processing involved with checks results in slower transactions, increased potential for errors and longer DSO, adversely impacting a company’s cash flow and financial stability.

The drawbacks of paper checks are evident in industries like construction, where 76% of subcontractors receive payments through checks. This method led to a staggering $273 billion in losses due to slow payments in 2023. Additionally, costs associated with issuing checks — ranging from $4 to $20 per check — exceed the minimal cost of digital transactions, which is about 30 cents per transaction. This discrepancy highlights an opportunity for businesses to transition from legacy payments to more efficient digital alternatives.

Digital Payments Cut DSO and Enhance Cash Flow

Switching to digital payment channels can streamline the payment process, effectively reducing DSO and improving overall financial health. Consider 83% of firms said adopting fully electronic payment processing is essential. Digital payments not only speed up transaction times but also enhance payment reliability and accuracy.

The growing preference for digital payments among vendors underscores this shift. Approximately 79% of vendors prefer digital payments, such as wire transfers, automated clearing house transactions and virtual cards, due to quicker processing times. Digital payment portals enable suppliers to receive payments easily and securely, offering features like supply chain financing and discounting to encourage timely payments. These advancements contribute to better cash flow management and stronger business relationships.

A study by Citizens Financial Group showed that 97% of middle-market firms that adopted digital treasury processes saw improvements in cash flow processing, with 96% noting better financial visibility and control. This level of efficiency is important, as 94% of treasury departments using checks plan to transition to digital payments within the next five years. Instant payments further improve transaction speed and efficiency, with 77% of mid-sized businesses adopting such methods this year.

Enhancing Customer Experience Through Digital Payments

Digital payments are proving beneficial not just for operational efficiency but also for strengthening customer relationships, the PYMNTS Intelligence report found. In B2B transactions, digital payment options have been shown to boost customer satisfaction and loyalty. Seventy-two percent of business buyers are more loyal to companies that offer their preferred digital payment methods, while 91% of manufacturers deem real-time payments essential for improving supplier relationships.

For small- to medium-sized businesses (SMBs), digital payments are becoming a key competitive advantage. Fifty-four percent of SMB owners would switch banks for same-day ACH payments. Additionally, 90% of SMBs prefer receiving B2B payments electronically, and 78% opt for electronic payroll. The growing use of artificial intelligence in payment systems underscores a broader trend toward digital transformation.

The post 75% of Companies Still Use Paper Checks Despite High Cost appeared first on PYMNTS.com.

More than two decades later, the digital wallet is now hitting its stride. The June 2024 report “Digital Wallets: Beyond The Transaction,” produced with Google Wallet, shows that digital wallets are gaining traction globally, with over 70% of consumers in the surveyed markets (Brazil, France, Germany, the U.K., and the U.S.) using them.

While the primary use remains payments and financial transactions, there’s a growing trend, particularly among Generation Z, to utilize digital wallets for storing and using non-financial credentials like IDs, access passes and loyalty cards. However, barriers like internet connectivity issues and skepticism toward fully embracing digital wallets persist, indicating room for growth and improvement. In short, the story of digital wallets is still being written.

The current chapter has been dominated by a surprising increase — as detailed in the report but also reinforced by anecdotal evidence — in alternative payments within wallets, as well as non-transactional usage. A recent panel led by PYMNTS CEO Karen Webster discussed the potential behind present and future use cases of digital wallets, which are rapidly evolving from simple payments form factors to comprehensive lifestyle management platforms.

Jenny Cheng, vice president and general manager of Google Wallet, emphasized that digital wallets are about “flexibility” and “freedom,” enabling users to leave home without physical wallets while still accessing essential credentials and services.

“We’re talking about convenience and safety, but ultimately this is about driving value to the user,” she told Webster.

One particularly interesting development in digital wallet technology is the growing prominence of QR codes, especially in markets where NFC technology is not universally available. Cheng highlighted Brazil as a prime example, where QR codes have become a common method for making payments through digital wallets.

“Brazil’s really leading the adoption of digital wallets in that country. And we’re seeing a huge adoption rate going up to about 85% right now of adoption of digital wallets,” Cheng said. She added that QR codes are “right there at the point of sale, the POS systems in Brazil. So you have the optionality of how you’re able to pay.”

Is Transit The Killer App?

This flexibility in payment methods has been crucial in driving adoption in markets with diverse technological infrastructures. It also demonstrates how digital wallet providers are adapting their solutions to meet the specific needs of different regions. For example, transit has emerged as a key use case for digital wallets, with the potential to drive broader adoption. Cheng emphasized the importance of transit in driving digital wallet usage, noting that it has surged since the pandemic.

She outlined two main approaches to transit ticketing in digital wallets. In the open loop model, consumers use the credit cards or debit cards already stored in their digital wallet, tap through the terminals and go through. The closed loop option is akin to showing the conductor a QR code after boarding a train.

Cheng highlighted the convenience factor of digital wallets in transit: “The ability to just simply top it up, so you’re not necessarily having to go to a physical machine and put dollars into your ticket, is a huge convenience for users as they continue to grow and as they adopt digital wallets going forward,” she said.

Nils Zeino-Mahmalat, managing director of German transit authority VDV, provided insights into how digital wallets are being integrated into public transportation systems in Germany. He explained that many transit operators have their own smartphone apps, which commuters primarily use for timetable information and real-time updates. Ticketing functionality has been added to these apps, and now the focus is on integrating wallet capabilities to reach users who don’t use dedicated transit apps.

However, obstacles remain. Zeino-Mahmalat highlighted fraud as a significant concern, specifically fraudsters copying digital tickets or even paper tickets.

To address this, VDV has developed a technology called “Motics” (mobile ticketing crypto service) to provide copy protection for digital tickets. According to VDV, “Motics establishes a connection between the existing security systems of eTicket Deutschland and the passenger’s smartphone. It has several stages of development so that tickets can be protected against copying and tampering via NFC, Bluetooth or optically as a barcode.

In the first stage, the VDV barcode is protected against copying by a dynamic security element. This could be a time stamp that is renewed every few seconds. If the ticket is then copied and sent, the dynamic element stops and is no longer updated. Copied tickets are therefore immediately detected by the control system,” VDV said.

Cheng acknowledged the fraud concern.

“I think fraud is actually a huge concern for a lot of transit operators,” she said.

Cheng also emphasized the importance of meeting users where they are: “This next generation pushing us to say digital first … I think in enabling that as a platform for transit is going to be a key part of this adoption curve that we’re on.”

Regional Factors

The panel discussion revealed that digital wallet adoption and usage patterns vary significantly across countries due to a combination of technological, cultural and regulatory factors, as noted earlier with Brazil and QR codes. Webster and Cheng noted that Brazil has also recently introduced Pix as another form of payment within digital wallets, further boosting usage.

Germany, on the other hand, presents a different picture. Zeino-Mahmalat explained that Germany remains relatively cash-centric, with many transit users still preferring paper tickets. He also highlighted how regulatory constraints can impact adoption: “In Germany, the prices for travel, public transport are regulated by the state. So there is very limited space where you can say: ‘People buying paper tickets have to pay more.’ It’s not allowed by law.”

Future Use Cases for Digital Wallets

Looking ahead, the panelists envisioned a future where digital wallets become even more integrated into daily life, offering enhanced personalization and convenience.

Jack Philbin, CEO of mobile marketing agency Vibes, painted a picture of the near future where digital wallets could revolutionize travel experiences.

“If you have an airplane boarding pass, and you go through security … Why not then include an offer for someone and a discount or incentive to shop at a specific brand or retailer in that airport while they wait?” he said.

Philbin also highlighted the potential for digital wallets to bridge the gap between online and offline experiences: “The wallet is a great destination for literally activating media. And so closed-loop attribution for the physical world purchase is just a massive, a massive category.”

Cheng emphasized the importance of personalization in future digital wallet experiences: “I want more personalization, right? Make it easier for me to remember, oh, I do have that offer.” She envisioned a future where digital wallets could seamlessly integrate various aspects of a user’s life, from daily commutes to international travel.

The evolution of and the future of digital wallets appears to be one of increased integration, personalization and utility. As these tools continue to evolve, they are poised to become an even more central part of how consumers interact with the world manage it and engage with brands and services.

As stated in the “Beyond The Transaction” report: “Once consumers have stored credentials and used a digital wallet — to verify their identities or present credentials to access events or programs, among other uses — data shows they are by and large satisfied with the convenience and ease of use of the technology and will continue to engage. The ripple effects are beginning to surface, especially among young consumers. Some members of Gen Z are moving on from physical wallets entirely, and the majority of these young consumers do not carry physical wallets all the time.”

The post Beyond the Form Factor: The Story of Digital Wallets Is Still Unwritten appeared first on PYMNTS.com.

The collaboration, announced Tuesday (Aug. 27), will tap into Rellevate’s digital banking, disbursements and wallet solutions, which the companies say are meant to unlock access to payments technology for underserved communities. 

“With a suite of public sector solutions that help communities shift to the safety, security, transparency and speed of digital payments, Mastercard helps governments use technology to further drive financial inclusion,” the release said. 

“Together, Rellevate and Mastercard will work with local, city and state governments to create ways for their constituents to access and manage their money faster and more efficiently.”

Stewart Stockdale, Rellevate’s co-founder, chairman and CEO, said the companies’ partnership began with the $1 billion One-Time Cash Assistance Program in Georgia, which supported 3 million of that state’s residents and “included one of the largest deployments of virtual wallets in a government program.”

Rellevate’s other public sector work has involved groups such as UNICEF, Detroit Crime Stoppers, Baltimore African American Male Engagement Program, St. Lucie Public Schools, and Foster Care Agencies “with a first-of-its-kind digital wallet solution,” the release added.

As PYMNTS wrote earlier this month, digital wallets are rapidly transforming the payments space, with projections suggesting they will surpass debit cards in terms of transaction value within three years. 

“This transition highlights the role of digital wallets not only as a payment option but also as a versatile tool that boosts consumer engagement and spending,” that report said.

Digital wallets are on pace to outpace debit cards in transaction volume at physical points of sale by 2027, per to a recent Worldpay report. The report shows that digital wallets are used by 53% of Americans and could dominate nearly half of all point-of-sale transactions globally by the end of the decade. The value of transactions made via digital wallets is expected to increase by more than twofold from 15% to 31% by 2027, while debit card transaction value will decrease from 28% to 23% over the same period.

Driving this shift is the convenience of digital wallets, which leads to more consumer spending. Digital wallet users spend 31% more on average that consumers employing other payment methods. The trend is especially pronounced among younger age groups, with 60% of Gen Z and 51% of millennials reporting higher spending when using digital wallets.

The post Mastercard and Rellevate Team on Public Sector Digital Payments appeared first on PYMNTS.com.

Payment delays can undermine SMB cash flow and have a downstream impact on SMBs’ ability to reinvest in their own operations and compete with larger peers.

That’s why, when it comes to reimagining SMB payments and turning them into a growth engine, Lorenzo Soriano de Teresa, senior vice president, merchant services at American Express (Amex) has just one word of advice.

“Automate, automate, automate,” he told PYMNTS during a recent conversation centered on findings from the latest “B2B and Digital Payments Tracker® Series,” which was produced by PYMNTS Intelligence in collaboration with American Express. “The right automation solution, or the right partner, can help businesses move past their current payments concerns to see tangible benefits.”

Still, SMBs, with their limited resources relative to their bigger competitors, often face significant hurdles when integrating automated payment processes into their existing systems.

The thought of overhauling a business’s traditional payment methods can be daunting. However, as Soriano de Teresa emphasized, this transition doesn’t have to be overwhelming.

Upgrading to automated payments is easier than many SMBs might expect, he said, noting that modern and vetted finance solutions are designed to integrate seamlessly with existing software, mitigating many of the complexities associated with such shifts.

“Implementing accounts payable (AP) and accounts receivable (AR) solutions, as we call them, is critical for SMBs struggling with late payments … and the payoff is well worth it,” he said.

Read more: SMBs and the Protracted Challenge of Delayed Payments

Cash Flow Management Can Spur Growth

In the world of business, digital transformation is no longer a luxury but a necessity, especially for SMBs looking to improve back-office efficiencies.

Integrating automated payment solutions can help SMBs address critical pain points such as late payments and cash flow visibility, while helping maintain strong relationships with vendors and customers. Simplifying business-to-business (B2B) solutions through automation also can lead to more streamlined operations and better financial health, said Soriano de Teresa.

“Paper checks and manual payments are prone to human error. Delayed payments can lead to less access to cash flow and potential issues with cash flow management,” he said, noting that businesses of all sizes have similar challenges around manual tracking, reconciling invoices, cutting paper checks and other dated AP and AR workflows.

By automating these processes, businesses gain enhanced visibility into their financial status, helping to ensuring timely payments and reducing the risk of human error associated with manual payment methods. This increased visibility allows SMBs to manage their cash flow more effectively, ensuring that they can meet their financial obligations and invest in growth opportunities.

On top of all that, automation also helps in maintaining positive relationships with suppliers by ensuring that payments are made on time, further fostering trust and reliability.

The benefits of automation are tangible, Soriano de Teresa said. Businesses that adopted automated solutions during the pandemic have reported improvements in cash flow management or receiving faster payments, according to Amex research. This return on investment (ROI) underscores the value of embracing digital payment solutions.

Key Takeaways for SMBs

SMBs do not have to go it alone in navigating this transition to automation. There are numerous partners and solutions available to help them implement these changes seamlessly.

Soriano de Teresa said Amex has invested in partnerships and developed proprietary solutions to scale automation for SMB customers. By collaborating with FinTech companies, Amex provides SMBs with tools to streamline their payment processes. These partnerships enable businesses to adopt embedded payment models, helping make transactions more efficient and convenient than manual payment methods.

Looking ahead, the payment space is set to evolve further, with new innovation focused on making things as seamless and integrated as possible. For SMBs, this means now is the time to explore automated payment solutions. Once SMBs are set up in an automated payments system, they will be better positioned to take advantage of future advancements in this space as technology continues to make B2B payments even more efficient.

To that end, Amex is embracing a three-pronged strategy, Soriano de Teresa said, building new innovations, partnering with FinTechs and making strategic acquisitions, to ensure it remains at the forefront of the digital payment revolution. And this investment in digital solutions will continue to fuel the next wave of advancements in B2B payments. 

The message from industry leaders like Soriano de Teresa is clear: The time to automate is now, and the rewards are worth the effort.

The post Small Businesses Turn Digital Payments Into Cash Flow Engine appeared first on PYMNTS.com.

Consumers in France are embracing digital wallets for payments. For example, more than one-third (38%) use them for online shopping. Surprisingly, we find millennials in France are more likely to use these wallets for online shopping than Generation Z consumers. In fact, Gen Z is the most likely to use them to pay when shopping in-store.

But facilitating payments and transfers is just one way consumers can use these tools. Digital wallets can be anywhere a smartphone is. Consumers in France are beginning to explore how the technology can be a trusted tool for nontransactional purposes.

PYMNTS Intelligence finds that consumers in France commonly need to confirm their identities. This suggests that the French market is ready to use these wallets to store ID documents and tickets. Other possibilities include facilitating travel and holding medical records.

These are just some of the findings detailed in “Digital Wallets Beyond Financial Transactions: France Edition,” a PYMNTS Intelligence and Google Wallet collaboration. This report examines consumer perceptions and use of digital wallets in the last year and into the future in the French market. It draws on insights from a survey of 3,365 consumers in France conducted from Jan. 11 to Feb. 5.

Inside “Digital Wallets Beyond Financial Transactions: France Edition”:

• What tasks consumers in France are completing using their digital wallets
• Which generations are using this technology the most
• How consumers in France are using these tools for identity verification
• Use cases for the technology in travel and events
• What share of French consumers predict that using these wallets to access events will become the norm

Once consumers use a digital wallet to store credentials or show their IDs, most are satisfied with their experience. Download the report to learn more about what’s next for this technology in France.

This report is the third in a series exploring how consumers in various major economies are using this technology. Check out the series archive to learn more about how use in France compares to other countries.

The post France Keeps Mobile Wallets Ready for Post-Olympic Events appeared first on PYMNTS.com.

The company announced Tuesday (Aug. 13) that it processed 13.1 billion pounds ($16 billion) in payments in the U.K. between January to June of this year. That’s compared to the 13.6 billion pounds Trustly handled over the entirety of 2023.

“Trustly’s strong performance highlights the growing adoption of open banking more broadly, with one in nine people in the UK reportedly using open banking services as of October 2023,” the company said in a news release.

Also Tuesday, the company announced it had named Mitchell Powers as its senior vice president for the U.K. He joins Trustly from online payments processor GoCardless, where he had served as vice president and general manager.

“The company has gone from strength to strength over the past 12 months,” Powers said. “I’m excited to be joining Trustly for its vision, its clear differentiators and — most importantly — its potential to completely revolutionize the way people pay for things in the United Kingdom.”

PYMNTS spoke in June with Trustly CEO Alex Gonthier about the challenge of introducing open banking/pay-by-bank into the eCommerce space.

“The thing that’s interesting is that no one has cracked the code yet on eCommerce,” Gonthier told PYMNTS CEO Karen Webster. “No one has cracked the code because we’re fighting against credit cards that have extremely rich rewards programs.”

To compete, he said, pay-by-bank providers must offer their customers incentives like cashback or rewards programs, without erasing the cost savings for merchants. Trustly has found some eCommerce success from the travel sector, and with payments that traditionally have been done with debit cards, such as healthcare and vet bills.

“You can think of us as the ‘next-gen’ paper check,” Gonthier said, adding that despite its challenges, he is optimistic about the future of pay by bank and open banking.

“In open banking, you have the absolute unique advantage over debit cards, the absolute unique advantage of seeing a consumer’s transactions in real time,” Gonthier said. “And with that, we actually see them on debit cards, on Venmo, on PayPal, on Zelle, on paper checks, wire transfer, we see everything.”

In a separate interview, PYMNTS spoke with Christina Potter, head of eCommerce at Trustly, about the benefits of open banking in the retail space.

For consumers, she said, paying via bank “allows them to leverage other payment methods beyond credit cards,” which she pointed out can be an expensive option, considering the current interchange rate environment.

The post Trustly UK Transaction Value Hits $16 Billion for H1 2024 appeared first on PYMNTS.com.

As Bloomberg News reported Saturday (Aug. 10), card tipping had been rare in the South American nation, leading many patrons to carry big wads of cash. 

Now, however, tipping is going digital amid a surge in FinTech activity, with Argentina now home to 312 such companies in 2023, up from 72 in 2017, the report said, citing data from the Inter-American Development Bank.

According to Bloomberg, Latin America eCommerce goliath MercadoLibre’s payments business Mercado Pago has come up with a new function in its app for tipping. 

“The spread of digital payments and decline of cash use started to negatively impact the amount of tips waiters received,” Agustin Onagoity, senior director for Mercado Pago Argentina, said in a statement to Bloomberg. “Our users and gastronomy workers really demanded a tips solution.”

The report also quotes Pedro Filippini, a Buenos Aires barista who lets customers send tips to his Mercado Pago account, finding the tips there tend to be more generous than cash gratuities, as those can depend on the amount of paper money a customer has with them.

He added that he prefers digital payments but can still see the need for cash as people are struggling. Cell service costs have ballooned, leading to situations where it’s harder to access Mercado Pago.

This is happening at a time when — as noted here earlier this year — the rise of digital tipping is transforming how consumers show gratitude for service. 

“This shift toward digital gratuity represents more than just convenience — it’s a reflection of broader societal changes, impacting both employee retention and transactional consumer experiences,” PYMNTS wrote.

In addition, that report said, the implementation of digital instant payouts for hospitality staff has been shown to improve morale and job satisfaction in the service industry, addressing longtime challenges in staff retention and leading to higher retention rates.

As Matt Tuchband, CEO of mobile tipping platform TipQwik, said in “Tap and Tip: Travel and Hospitality Embrace Digital and Instant Payments,” a joint PYMNTS Intelligence and Ingo Payments research study, the ability to tip via smartphone throughout a property can reduce turnover by making sure staff who normally do not get tips included on a bill, such as housekeeping and porters.

In addition, “It provides a simple option for guests to show their appreciation at any time without fumbling for cash,” Tuchband said.

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