Rapyd (credit image/Pixabay/Tung Lam)Rapyd, the global fintech operator has released its report, “2024 State of Payments: High-Opportunity Industries.” This comprehensive study dives into the evolving landscape of cross-border payments, focusing on the needs of fast-growing industries. This includes online gaming, content creation platforms, online travel, marketplaces, and eCommerce. While these industries offer high-profit potential, businesses within them face unique payment challenges, including delays, fraud, and complex compliance requirements.

To gain a deep understanding of the current landscape and future outlook, Rapyd conducted a global research study surveying more than 1,000 business owners and payment decision-makers from a variety of high-opportunity industries, across ten key markets: Brazil, Canada, France, Germany, Italy, the Netherlands, Spain, Singapore, the UK and the US. The study explores how B2B and B2C businesses in these industries accept payments, disburse payouts, and view future payment trends.

Speed & convenience top priority: The report found 73% of businesses in high-opportunity industries grapple with payment delays ranging from 2-15 days, hindering cash flow. As a result, speed and convenience remain the top payment priorities. 38% of businesses surveyed prioritise fast and easy transfers, highlighting the need for solutions that address both speed and reliability.

Delays disrupt businesses: 45% of these businesses struggle with cash flow due to payment delays, according to the Rapyd report. This underscores the urgency for faster payment solutions, with many businesses (32%) seeking a simple integration process alongside swift transactions.

Businesses want increased authorisation rates: Beyond speed and convenience, the report finds that authorisation rates remain a concern for many businesses. A select group of businesses state that improved authorisation rates matter. 1 in 6 businesses want their payment provider to offer solutions that minimise declined transactions.

Key Findings:

  • Speed & convenience reign supreme: Businesses prioritise frictionless payments (38% prioritise speed of payments).
  • 73% struggle with delays: Rapyd’s report finds 73% of businesses in high-opportunity industries face payment delays (2-15 days), hindering cash flow.
  • Fraud prevention remains crucial: With 25% of businesses citing it as a key factor, robust fraud management is essential.
  • Real-time payments on the rise: 38% of businesses anticipate a surge in RTP adoption for faster settlements and improved cash flow.
  • AI combats evolving fraud: The report emphasises the value of AI in mitigating fraud, particularly difficult-to-detect tactics.

The rise of AI and Real-Time Payments

The report highlights the growing adoption of two transformative technologies that are reshaping the future of high-opportunity industries:

  • Real-Time Payments (RTP): RTP offers significant advantages over traditional methods, with faster settlement times leading to improved cash flow and wider access to capital. 38% of businesses surveyed anticipate a spike in RTP adoption in the next 12 months. David Rosa, Rapyd’s General Manager of Disburse, says, “Payment delays are significant pain points for both B2B and B2C businesses. 26% report them as a major challenge. Real-time payments and payouts can significantly improve the payment experience for a variety of high-opportunity industries that need to collect and send payments to businesses and consumers.”
  • AI-Powered Solutions: AI plays a critical role in fraud prevention, risk management, and streamlining compliance checks. The report emphasises the value of AI in mitigating fraud, particularly difficult-to-detect tactics. Dr. Shlomit Wagman, Rapyd’s Chief Regulation and Compliance Officer, elaborates on this point, stating, “AI is a powerful weapon against increasingly sophisticated fraud tactics.”
(Image credit/LinkedIn/Dr. Shlomit Wagman)
Dr. Shlomit Wagman, Rapyd’s Chief Regulation and Compliance Officer

Balancing security and frictionless user experience

The report also explores the delicate balancing act faced by B2C businesses between security and a smooth user experience. Robert Gray, Rapyd’s Chief Risk Officer says, “B2C eCommerce businesses must prioritise a secure and compliant checkout process. At the same time ensuring a smooth experience.”

“This can be achieved by implementing robust fraud prevention measures, like real-time checks, without hindering the flow,” Gray adds.

Enterprise Times: What this means for businesses

Needless to say, as all analysts suggest, eCommerce is predicted to persist with its trajectory and continue to grow exponentially. However, companies across all industries and sectors struggle to find reliable, secure payment solutions to meet their needs. Furthermore, a variety of new payment types are emerging in the market, with varying levels of suitability depending on the sector. The report dives deeper into these challenges and explores how innovative solutions like Real-Time Payments (RTP) and AI-powered fraud prevention can support businesses in high-opportunity industries.

Rapyd says this report is the first of its kind to examine the challenges, trends, and preferences of these high-opportunity industries. The report was compiled by business leaders within the companies reshaping commerce. Payment providers need to offer solutions tailored to challenges in eCommerce. These include high chargeback rates, the necessity for rapid payouts, and multi-currency transaction management. This large and in-depth report is a good way for enterprises to embrace and learn about these new payment technologies.

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