Increasing Millennial Presence in the Marketplace is Driving the Digital Payment Market Growth

Payments by cash are slowly fading as the emergence of digital, or cashless payment options, are quickly being adopted by consumers. Industry leaders are heavily investing into digital payments because of their convenience and technology-supported infrastructure. Consumers can easily make payments on their mobile devices at anytime and anywhere. With the growth of the market, consumers now have many payment solutions to choose from, whether its bank cards, net banking, e-wallets or mobile in-store applications. Digital payments are also much more secure, especially now that tech companies are building software to improve security. According to data compiled by Mordor Intelligence, the global digital payments market was valued at USD 2.89 Trillion in 2017 and is expected to reach USD 6.49 Trillion by 2023. Additionally, the market is projected to grow at a CAGR of 13.7% during the forecast period from 2018 to 2023. The market is also being accelerated by the increasing adoption of mobile smart devices that support digital payment platforms, which is primarily being driven by millennials. Glance Technologies Inc. (OTC: GLNNF), PayPal Holdings, Inc. (NASDAQ: PYPL), Total System Services, Inc. (NYSE: TSS), Fiserv, Inc. (NASDAQ: FISV), Worldpay, Inc. (NYSE: WP)

Millennials currently account for approximately 27% of the global population. Technology is heavily integrated into their lives, as nearly 90% of millennials own or use a smartphone on a day-to-day basis. The group is identified to be heavily influenced by technology, while their buying habits are driven by instant gratification that smartphones, the internet and other modern conveniences provide. “What remains key is consumer choice. Smartphones have democratized how companies innovate and placed the consumer back at the heart of the development process. People want a frictionless experience, taking the path of least resistance, just as long as they can remain secure,” said Bill Gajda, Global Head, Innovation & Strategic Partnerships at Visa. “Millennials will continue to drive mobile money management and payments. More than nine in ten (91%) predict that they will be using their mobile devices for financial purposes in three years’ time, far above the national average of 72%.”

Glance Technologies Inc. (OTCQB: GLNNF) is also listed on the Canadian Securities Exchange under the ticker (CSE: GET). Earlier last week, the Company announced that, “it has entered into a strategic alliance and referral agreement with Merchant Advance Capital Limited Partnership (“Merchant Advance Capital”). Merchant Advance Capital provides funding to small and medium-sized businesses by purchasing a specified percentage of future receivables.

David Gens, CEO of Merchant Advance Capital commented: ‘We are proud to be partnering with Glance, a company that shares our values of innovation and use of technology in providing financial services. Together, we can provide Canada’s most convenient financing solutions.’

Under the terms of the Strategic Alliance Agreement, Glance and Merchant Advance Capital will collaboratively market and promote each other’s businesses through their respective marketing and sales channels. Under the terms of the Referral Agreement, Glance will be paid a fee for each transaction that Merchant Advance Capital closes from a Glance generated lead.

A significant emerging sector of the economy is made up of freelancers and small businesses. Glance recently launched its Glance PayMe mobile POS solution providing freelancers and small businesses with a secure, low-fee processing solution without long delays in getting paid. Small businesses often have difficulty obtaining funding from traditional banks. Through this new partnership, small businesses operating on the Glance platforms may now be eligible to receive financing in as little as one to three business days.

Desmond Griffin, CEO of Glance commented: ‘We see Merchant Advance Capital as the perfect partner for our new Glance PayMe application. We are impressed by their innovative approach to financing small business, the application of technology to their approval and risk management processes and ability to quickly approve an application. We think their product is an excellent solution that can help our Glance merchants overcome seasonality challenges and expand and grow their businesses.’

Merchant Advance Capital is a national financial services company working with small and medium-sized businesses throughout Canada.”

PayPal Holdings, Inc. (NASDAQ: PYPL), fueled by a fundamental belief that having access to financial services creates opportunity, is committed to democratizing financial services and empowering people and businesses to join and thrive in the global economy. PayPal Holdings, Inc. recently announced that it has completed its acquisition of Hyperwallet for approximately USD 400 Million. This transaction will strengthen PayPal’s payout capabilities and enhance PayPal’s ability to provide an integrated suite of payment solutions to ecommerce platforms and marketplaces around the world. Ecommerce platforms and marketplaces have been focused on creating frictionless experiences for sellers to accept payments from buyers – an area where PayPal and Braintree have really innovated, powering many of the world’s largest and most noteworthy marketplaces,” said Bill Ready, Chief Operating Officer, PayPal. “We look forward to working with Brent and the Hyperwallet team to strengthen our platform with advanced payout capabilities as we build on our aspiration to serve the digital economy with a full operating system for commerce.”

Total System Services, Inc. (NYSE: TSS) is a leading global payments provider, offering seamless, secure and innovative solutions across the payments spectrum – for issuers, merchants and consumers. TSYS recently announced that it had signed a long-term contract extension with Regions Bank to continue providing processing services for the bank’s consumer and small business credit card portfolios. As part of the new agreement, TSYS will also begin providing processing services for Regions’ commercial credit card portfolio, and will support the bank’s commercial ePayables offering through TSYS’ Virtual Payment Precept (VPP) platform – a strategic virtual card payables solution for B2B payments. TSYS’ VPP enables the generation of secure, virtual, single-use account information in real-time with more control over account and transaction parameters. It reduces risk, improves operational efficiency and makes it easier for both accounts payable and accounts receivable to reconcile transactions. Virtual cards replace primary account numbers on physical purchasing cards, making them a flexible, secure payment method that allows businesses to place strict limits around what each virtual account number can be used for when making a purchase. “We have worked with TSYS for many years and are very familiar with the company’s commitment to innovation and customer service, as we expand our relationship into the commercial card business,” said Brett Couch, Head of Regions Procurement and Corporate Real Estate. “We’re excited to have new opportunities to grow that part of our business using TSYS’ proven payables platform and drawing on their experience in the commercial card market.”

Fiserv, Inc. (NASDAQ: FISV) enables clients worldwide to create and deliver financial services experiences in step with the way people live and work today. Fiserv, Inc. and QuotePro recently announced that they are facilitating faster, next-day availability of funds and helping mitigate security concerns for businesses that accept payments in cash. QuotePro Kiosks are the latest generation of self-service machines that can provide a complete cashiering solution to businesses that accept payments via cash, check, credit and debit card. QuotePro data from more than 100 kiosks at businesses ranging from auto dealers to utilities and insurance companies, shows that when given a choice between cash, check, credit and debit card, 70% of consumers paying at these kiosks are choosing cash. “For many retail businesses, cash is the dominant form of payment and innovations in self-service and technology help reduce the burden of managing cash payments,” said Pat Korb, President, Financial & Risk Management Solutions, Fiserv. “Faster access to funds, reduced overhead and enhanced security are key benefits for businesses, and consumers appreciate the flexibility and convenience to pay in the way they prefer.”

Worldpay, Inc. (NYSE: WP) is a leading payments technology company with unique capability to power global omni-commerce. Worldpay, Inc. and Paysafe Group recently announced a new strategic partnership, with sights set on establishing an industry-leading standard in iGaming and Sports Betting digital payments acceptance and security in the United States (U.S.). The partnership will enable seamless transactions, reduce operating costs and allow universal payment acceptance, leveraging Worldpay’s deep sector expertise and optimized credit card processing, fast-fund payouts, and a range of treasury and payment solutions – alongside Paysafe’s proven online gambling and gaming digital payment options, including its popular NETELLER digital wallet and paysafecard, its award-winning online cash solution. “As a leading payments provider for iGaming companies, state lotteries and land-based casinos, Worldpay is excited about the enhancements this partnership will bring when it comes to maximizing payment acceptance, enabling new digital wallets, as well as minimizing fraud risk and lowering cost,” said Shane Happach, EVP, Head of Global Enterprise eCommerce for Worldpay. “Our combined strengths and capabilities will simplify payments for gaming operators, while also continuing to show our attentiveness to responsible gaming and our mission to protect the integrity of every transaction.”

Source: FinancialBuzz.com