With businesses steal dealing with the impact of the recent hit of the coronavirus pandemic, rumors of a second wave are starting to worry market participants.
The first lockdown posed unique challenges for businesses but it also outlined alternative ways for the payments industry market participants to deal with the situation and adapt.
ConnectPay CEO, Marius Galdikas, recently laid out a few insights on how payment industry businesses can stay afloat and retain traction in case of a second wave.
Partnerships with fintech firms
One way for traditional businesses to adapt to a potential second hit would be to form partnerships with fintech companies and work out timely innovative solutions. There is plenty of room for growth in the fintech industry.
Marius Galdikas said:
Marius Galdikas
Source: LinkedIn
Fintech industry pivots and innovates faster, which could turn into a competitive advantage for business with the right payment provider. In times of crisis, such an advantage could make a difference against other market players. With more safeguards in place, businesses can benefit even more once the crisis abates.
With the introduction of social distancing and later the lockdown, banks and payment processors were under pressure with the growing risks of phishing, scams, etc. Partnerships with fintech companies can help with the improvement and development of the security.
Delayed payment
The option for delayed payment allows businesses to provide their customers with flexibility and at the same time retaining some guarantee of funds.
Galdikas explained:
In economies shocked by lockdowns, the option for delayed payments may buy more time for businesses. This can help establish trust between existing and future customers and allow vendors to maintain traction.
Marius Galdikas continued:
Having a wider range of payment options available will ultimately place vendors in a better position to serve their clients.
