The boom in the digitalization of payment methods
The year 2020 presented great challenges as a result of an unexpected pandemic that changed the status quo of the payment systems industry. An industry that, though it had been evolving and had the expansion of digitization as the main point in its roadmap, had to accelerate these processes due to the new context and social and economic needs. Both small and large companies saw an increase in their digital payment operations of 40% in the last 2 years.
In this context, fintech companies such as Ualá, MercadoPago, MODO, ANK and NaranjaX -among others- emerged to solve this problem, also known as the “boom of digital wallets” that allow traditional purchase transactions with credit and debit cards using just a smartphone.
One of the social sectors that were benefitted with this evolution were the ones who did not have bank accounts, making it possible for a wider sector of the population to have access to a digital means of payment. This was possible thanks to the appearance of prepaid cards and the uniform virtual key (CVU) allowing people to obtain a virtual account linked to a card, without the need for a bank account.
It was also thanks to the interoperability of the systems that people were able to start sending money from their prepaid card to any bank or virtual account (and vice versa).
In the last year there has been a huge increase in the use of digital payment methods, and the prepaid card has been the main star of the play, largely displacing traditional credit or debit cards from their throne.
The trend for the next few years indicates that the revolution of digital payment methods will continue to increase with the arrival of new players in the payment method ecosystem and the transformation of traditional banking towards a more digital, intelligent, and user/self-managed banking.
This plurality of digital payment channels, along with the trend towards omnichannel approaches, generates in the accounting, administration and finance areas a greater challenge of solving reconciliations of increasingly complex data, sources of different origins, files with different structures and formats, taxes, fees, accreditation deadlines and different descriptions, among other difficulties. Doing these tasks on a spreadsheet becomes impossible and the chance of making mistakes is increasingly significant.
Fortunately, these areas have the perfect solution: Conciliac EDM. A platform that offers automation of all their data matching and reconciliation processes, consolidations, and data validation through the generation of rules created by the user. Automation can be achieved by providing the flexibility and power to the user, to face this and many other scenarios.
Contact us to schedule a Demo and learn about all the benefits that Conciliac can bring to the Finance and Administration areas in your day-to-day operations.