Expanding Cybersecurity Reach with Threat Intelligence

Mastercard’s decision to acquire Recorded Future is a calculated response to the escalating risks in today’s digital landscape. With the global cost of cybercrime projected to reach $9.2 trillion by the end of 2024, according to Statista, the need for sophisticated, real-time threat intelligence has never been greater. Recorded Future’s unique position in the cybersecurity market, with over 1,900 clients in 75 countries—including the governments of 45 countries and more than half of the Fortune 100—makes it a valuable asset in combating these threats.

Craig Vosburg, Chief Services Officer at Mastercard, emphasized the strategic importance of the acquisition: “Trust is the foundation of any relationship. Recorded Future adds to how we deliver that greater peace of mind before, during, and after the payment transaction.” This highlights Mastercard’s commitment to ensuring the security and integrity of its payment infrastructure, which processed $9 trillion in transactions in 2023 alone.

Integrating AI-Powered Analytics

The integration of AI-powered analytics into Mastercard’s cybersecurity framework through its acquisition of Recorded Future represents a pivotal shift in how threat intelligence is leveraged across global digital ecosystems. At its core, Recorded Future’s AI-driven technology enhances the real-time ability to detect and mitigate threats by analyzing vast quantities of data points from diverse sources—ranging from dark web forums and hacker communities to public and private databases. These insights are critical in detecting emerging cyber risks, and the speed and accuracy with which AI processes this data enable a level of foresight that traditional threat detection methods struggle to achieve.

Recorded Future’s platform employs advanced machine learning algorithms to synthesize and interpret billions of data points, enabling it to detect anomalies and predict potential attacks. By constantly monitoring a global array of digital environments, it offers real-time intelligence on everything from malware patterns to geopolitical risks. This real-time visibility into potential cyber threats is essential for financial institutions that require continuous protection against the evolving landscape of cybercrime. As cyber threats grow in complexity, AI’s capacity to analyze complex data sets becomes increasingly vital.

Financial institutions, in particular, will benefit from this AI-powered integration. The use of AI to bolster identity verification, fraud detection, and threat intelligence has been at the forefront of Mastercard’s strategy, but with Recorded Future’s capabilities, this takes on a new dimension. For instance, Mastercard’s current fraud detection systems rely heavily on pattern recognition and real-time decisioning to prevent fraud at scale. The acquisition of Recorded Future allows these systems to evolve further, incorporating predictive analytics to anticipate threats before they materialize. As Mastercard Chief Services Officer Craig Vosburg explained, this integration will enable them to “innovate faster, create smarter models, and anticipate emerging threats before cyberattacks can take place.”

What distinguishes Recorded Future’s AI from traditional cybersecurity approaches is its use of natural language processing (NLP) and machine learning to automate the process of scanning and understanding millions of unstructured and structured data sources. These AI-driven insights are then transformed into actionable intelligence that can be directly used by security professionals. Instead of merely identifying known threats, Recorded Future’s platform predicts potential risks based on patterns and behaviors. This proactive stance is particularly advantageous in the context of financial services, where a single breach can result in massive reputational and financial damages.

Moreover, the AI-powered analytics are designed to be user-friendly, ensuring that even complex threat intelligence is accessible to non-experts. Recorded Future has been pioneering in its ability to break down highly technical data into digestible insights, allowing cybersecurity teams to make informed decisions quickly. The platform’s use of OpenAI language models, for example, helps automatically summarize threats, presenting data in a way that is easily understandable to decision-makers.

By integrating Recorded Future’s technology, Mastercard not only gains the ability to track emerging threats more efficiently but also to automate responses to these threats in real time. This shift toward AI-driven cybersecurity represents a growing trend in the financial sector, where organizations are increasingly turning to artificial intelligence to manage the growing complexity of digital threats. With Recorded Future’s AI capabilities, Mastercard can now leverage predictive analytics on a much larger scale, positioning itself at the forefront of cybersecurity innovation in the financial industry.

This acquisition underscores the broader industry trend of leveraging artificial intelligence to manage and mitigate financial risk. As AI becomes increasingly sophisticated, the financial services industry is poised to see significant transformations in how data is processed, threats are managed, and risks are mitigated.

A Collaboration with Proven Results

This is not the first time Mastercard and Recorded Future have joined forces. Earlier in 2024, the two companies collaborated to launch an AI-supported service that alerts financial institutions when a payment card is likely compromised. The results have been impressive: since the service’s inception, Mastercard has doubled the rate at which compromised cards are identified, a clear indicator of the potential synergies between the two firms.

This partnership has proven to be a game changer for fraud detection and prevention, and the acquisition of Recorded Future will allow Mastercard to further integrate these capabilities into its global operations. According to Ahlberg, Recorded Future will remain an independent subsidiary within Mastercard, retaining its commitment to open intelligence while benefiting from Mastercard’s massive scale.

Strengthening Mastercard’s Cybersecurity Portfolio

The acquisition of Recorded Future is part of a broader strategy by Mastercard to expand its cybersecurity footprint. In recent years, the company has made several high-profile acquisitions in the field, including CipherTrace, a blockchain analytics firm, and Ekata, a digital identity verification provider. These acquisitions are part of Mastercard’s mission to provide end-to-end security for its customers, from fraud detection to identity verification.

Exciting times ahead! @Mastercard is acquiring @RecordedFuture, combining two global leaders in digital security. With our world-class intelligence and AI, we’ll scale faster, helping more customers mitigate risks and protect the digital economy. https://t.co/9oQLk4knTb pic.twitter.com/B1SXq3k0D5

— Recorded Future (@RecordedFuture) September 12, 2024

Mastercard’s acquisition of Recorded Future adds to this arsenal, providing an unparalleled level of real-time threat intelligence that will help the company stay ahead of cybercriminals. Vosburg highlighted the importance of this approach: “Together we will innovate faster, create smarter models, and anticipate emerging threats before cyberattacks can take place—in payments and beyond.”

The Bigger Picture: Cybersecurity and the Future of Payments

This acquisition also has broader implications for the financial industry, particularly as cyber threats evolve with the increasing adoption of new technologies. Financial institutions have long been prime targets for cybercriminals, and the integration of Recorded Future’s threat intelligence capabilities will offer better protection not only for Mastercard’s clients but also for the wider financial ecosystem.

According to Josh Lefkowitz, CEO of Flashpoint, the acquisition underscores the growing recognition of threat intelligence as a mission-critical component of an organization’s security posture: “This move shows how central cybersecurity has become for CISOs, CSOs, and Boards as they work to protect people and assets from an escalating array of threats.” Mastercard’s focus on developing AI-driven security solutions positions the company at the forefront of a rapidly evolving landscape.

Highlights importance of AI-driven Threat Intelligence

Mastercard’s acquisition of Recorded Future is a bold and strategic move aimed at fortifying the company’s cybersecurity infrastructure while positioning it to tackle future threats in the digital economy. As cybercrime continues to escalate, this acquisition not only strengthens Mastercard’s ability to protect its payments ecosystem but also highlights the importance of AI-driven threat intelligence in securing the global digital economy.

As Paige Smith from Bloomberg noted, “Mastercard’s ability to predict and neutralize cyber threats will be a key differentiator in the coming years, as companies and governments look for more proactive and intelligent solutions to combat digital threats.” With Recorded Future now under its umbrella, Mastercard is well-positioned to lead in this critical area of cybersecurity.

1. Stripe

Stripe continues to be a front-runner in the payment processing industry thanks to its powerful API that allows businesses to customize their payment solutions. Known for its developer-friendly environment, Stripe has been a go-to choice for startups and tech-savvy businesses. “Stripe’s ability to integrate with virtually any platform and its constant innovation in payment technology makes it indispensable for businesses looking to scale,” says John Collison, Stripe’s co-founder.

Stripe has expanded its AI-driven fraud detection capabilities, which help businesses identify and prevent fraudulent transactions in real time. This feature and its support for a wide array of payment methods, from credit cards to cryptocurrencies, make Stripe a leader in the field.

2. Square

Square is another giant in the payment processing industry, mainly known for its ease of use and versatility. From small businesses to large enterprises, Square provides a comprehensive suite of tools beyond payment processing, including inventory management and customer analytics. “We’ve built Square to be more than just a payment processor. It’s a platform that helps businesses run their operations more efficiently,” says Jack Dorsey, Square’s CEO.

Square’s innovative POS (Point of Sale) system, combined with its robust data analytics capabilities, allows businesses to gain insights into their sales patterns and customer behavior, making it a top choice for retailers.

3. Adyen

Adyen has established itself as a preferred payment processor for global businesses due to its extensive reach and ability to process payments in over 150 currencies. The company’s single-platform solution streamlines payments across multiple online, mobile, or in-store channels. Pieter van der Does, Adyen’s CEO, explains, “Our mission is to help businesses grow by removing the complexity of payments and delivering a seamless customer experience.”

Adyen’s technology is designed to handle high-volume transactions easily, and its advanced risk management tools ensure secure processing, making it a trusted partner for enterprises worldwide.

4. PayPal

PayPal remains a dominant force in the payment processing industry, particularly in e-commerce. With its strong brand recognition and user-friendly interface, PayPal is favored by both consumers and businesses. Dan Schulman, PayPal’s CEO, highlights the company’s focus on innovation: “We are constantly evolving our platform to offer new services that meet the needs of our customers in an increasingly digital world.”

In 2024, PayPal’s advancements in mobile payment technology and integration with major e-commerce platforms will make it even more attractive to businesses looking for a reliable and flexible payment solution.

5. Worldpay

Worldpay, now part of FIS, offers a comprehensive payment processing solution that caters to businesses of all sizes. The platform supports various payment methods and currencies, making it ideal for companies with a global customer base. “Our goal is to provide a seamless payment experience that meets the needs of today’s connected consumers,” says Stephanie Ferris, CEO of FIS.

Worldpay’s focus on security is evident in its use of tokenization and encryption technologies, which protect sensitive customer data and reduce the risk of fraud.

6. Braintree

Braintree, a PayPal service, is known for its flexibility and developer-friendly platform. It supports various payment methods, including credit cards, digital wallets, and even Venmo, making it a versatile business option. “We’re committed to providing a platform that enables businesses to accept payments easily and securely, no matter how they operate,” says Juan Benitez, General Manager of Braintree.

Braintree’s advanced fraud protection tools and seamless integration with PayPal make it a strong contender for businesses seeking a robust payment processing solution.

7. Klarna

Klarna has made a name for itself in the payment processing industry by offering a “buy now, pay later” (BNPL) service that has become increasingly popular among consumers. Sebastian Siemiatkowski, Klarna’s CEO, notes, “Our goal is to make payments as smooth as possible, giving consumers the flexibility they need while helping businesses increase conversion rates.”

Klarna’s technology allows instant credit approval at checkout, making it an attractive option for e-commerce businesses looking to enhance the customer experience and boost sales.

8. Authorize.Net

Authorize.Net, a Visa service, has been a reliable payment gateway for over two decades. Known for its robust security features, including advanced fraud detection tools, Authorize.Net is trusted by businesses for its reliability and scalability. “We’ve built Authorize.Net to be a payment gateway that businesses can rely on, no matter how big or small they are,” says Matt Grosse, Vice President of Authorize.Net.

The platform’s ability to integrate with various e-commerce platforms and its support for recurring billing make it a popular choice for subscription-based businesses.

9. Chase Paymentech

Chase Paymentech, a subsidiary of JPMorgan Chase, offers a wide range of payment processing solutions that cater to businesses of all sizes. With its extensive global reach and robust security measures, Chase Paymentech is a trusted partner for businesses looking to expand internationally. “Our focus is on providing a secure and efficient payment processing experience that helps businesses grow,” says Gordon Smith, CEO of Consumer & Community Banking at JPMorgan Chase.

The platform’s advanced analytics tools give businesses valuable insights into their sales and customer behavior, helping them make informed decisions.

10. 2Checkout (now Verifone)

2Checkout, recently rebranded as Verifone, offers a versatile payment processing solution that supports various payment methods and currencies. The platform’s focus on e-commerce and digital goods makes it a popular choice for online businesses. “We’ve built a platform designed to meet the needs of the modern digital economy,” says Mike Pulli, CEO of Verifone.

Verifone’s robust security features and seamless integration with major e-commerce platforms make it a reliable and flexible payment processing solution for businesses looking to scale.

Conclusion

The payment processing landscape in 2024 is characterized by rapid technological advancements that offer businesses more options than ever before. From AI-driven fraud detection to seamless integration with e-commerce platforms, these ten companies are leading the way in providing innovative and reliable payment processing solutions. For businesses looking to stay competitive in the digital age, choosing the right payment processing service is critical to ensuring a smooth and secure customer transaction experience.

The Shift Toward Alternative Payment Methods

The payment landscape is rapidly changing, with consumers increasingly favoring alternative payment methods (APMs) over traditional credit and debit cards. Digital wallets, buy now, pay later (BNPL) options, and even cryptocurrencies are gaining traction, especially among younger demographics. According to a recent survey, over 45% of millennials prefer using digital wallets like Apple Pay or Google Pay for online purchases. The convenience and security that these methods offer largely drive this shift. As Brian Ross, CEO of a leading fintech company, notes, “Businesses that fail to adopt alternative payment methods risk losing out on a significant portion of the market.”

For e-commerce businesses, integrating APMs is no longer optional but essential. This means working with payment processors that offer a wide range of payment options to cater to diverse customer preferences. “It’s all about providing a frictionless checkout experience,” says a payment strategy consultant Sarah Thompson. “The more payment options you offer, the more likely you are to convert a sale.”

Emphasis on Security and Compliance

With the rise of digital payments, security remains a top concern for consumers and businesses. Payment fraud is rising, and businesses must prioritize security measures to protect sensitive customer data. In 2024, advanced fraud detection tools powered by artificial intelligence (AI) are becoming standard in the industry. These tools analyze transaction patterns in real time to identify and prevent fraudulent activities before they occur. As a cybersecurity expert, John Miller, explains, “AI-driven fraud detection is a game-changer for businesses. It significantly reduces the risk of fraud and helps build customer trust.”

Additionally, regulatory compliance is becoming increasingly complex, with new data protection laws being implemented globally. Ensuring compliance with local regulations is critical for businesses operating in multiple regions. This often means working with payment processors with robust compliance frameworks. “Navigating the regulatory landscape can be challenging, but it’s essential for avoiding hefty fines and maintaining customer trust,” says Thompson.

The Role of Artificial Intelligence and Machine Learning

Artificial intelligence (AI) and machine learning (ML) are revolutionizing payment processing in various ways. From personalized customer experiences to predictive analytics, AI is enabling businesses to optimize their payment strategies. One of the most significant applications of AI in payment processing is in dynamic pricing models. These models use AI to adjust real-time prices based on demand, competitor pricing, and other factors. “Dynamic pricing powered by AI allows businesses to maximize revenue while remaining competitive,” says Ross.

Moreover, AI is enhancing customer support in payment processing. Chatbots and virtual assistants now handle customer inquiries, process payments, and even manage refunds. This not only improves efficiency but also enhances the overall customer experience. Thompson notes that “AI-driven customer support is a win-win for businesses and customers. It reduces operational costs while providing quick and efficient service.”

The Integration of Payment Processing with E-commerce Platforms

In 2024, seamless integration between payment processors and e-commerce platforms is more important than ever. Businesses are looking for payment solutions that can be easily integrated with their existing e-commerce systems, enabling a unified experience for customers and merchants. “Integration is key to streamlining operations and providing a cohesive experience,” says Miller. “The more integrated your payment processing, the easier it is to manage transactions, track sales, and analyze data.”

Many payment processors now offer APIs that allow businesses to customize their payment solutions and integrate them with other tools, such as inventory management systems and customer relationship management (CRM) platforms. This level of integration helps businesses optimize their operations and gain valuable insights into customer behavior.

The Growing Importance of Sustainability in Payments

Sustainability is becoming a significant factor in consumer purchasing decisions, and this trend is extending to payment processing. More consumers seek eco-friendly payment options like digital receipts and paperless transactions. Some payment processors even offer carbon offset programs, where some transaction fees are used to fund environmental projects. “Sustainability is no longer just a buzzword; it’s a business imperative,” says Ross. “Customers are increasingly choosing to support businesses that align with their values.”

For e-commerce businesses, adopting sustainable payment practices can attract environmentally conscious consumers and reduce operational costs. “Going paperless and embracing digital solutions is a win for both the planet and your bottom line,” adds Thompson.

Choosing the Right Payment Processor

In 2024, choosing the right payment processor is more critical than ever for e-commerce success. Businesses need to consider various factors, including the availability of alternative payment methods, security features, AI capabilities, integration options, and sustainability practices. By staying informed about the latest payment processing trends and selecting a processor that aligns with their business goals, companies can enhance the customer experience, reduce risks, and drive growth in the competitive e-commerce landscape.

The announcement marks a significant shift for the retailer, which has traditionally focused on its vast physical and e-commerce platforms. With the majority-owned fintech subsidiary, One, now offering installment loans, Walmart is expanding its financial offerings and setting the stage to disrupt the existing BNPL landscape dominated by players like Affirm and Afterpay.

A report on CNBC discusses Walmart’s entrance into the Buy Now, Pay Later Arena:

Strategic Expansion Beyond Retail

“Walmart is not just a retail giant anymore; it’s moving into high-margin businesses,” CNBC.com’s Melissa Repko explained during a discussion. The retailer is adopting a strategy similar to Amazon’s by focusing on its core retail operations and exploring more profitable sectors such as advertising and financial services. The introduction of installment loans through its fintech arm signifies Walmart’s intent to tap into the lucrative financial industry, offering consumers new ways to finance their purchases directly through Walmart, which could enhance customer loyalty and increase sales.

This shift towards financial services underscores Walmart’s intention to maximize profits and reduce reliance on low-margin retail sales. By creating its BNPL service, Walmart aims to retain more control over its financial ecosystem, potentially offering more competitive rates and terms than external providers. This could improve profit margins and attract a new demographic of consumers looking for flexible payment solutions.

Impact on Existing Partnerships

The new initiative by Walmart’s fintech One is raising concerns among its current partners. “With Walmart building out its technology to support BNPL loans, partners like Affirm might soon find their relationship with the retailer in jeopardy,” added CNBC’s Hugh Son. As Walmart moves to integrate these services in-house, it might reduce its reliance on third-party financial technology providers, which could reshape current business alliances and affect the competitive dynamics within the BNPL space.

Particularly troubling for existing partners like Affirm is Walmart’s potential to fully replace its services with its solutions. If Walmart’s in-house BNPL offerings gain traction, it could significantly reduce its partnerships with specialized fintech firms, which rely heavily on the volume generated by such large retail clients. This strategic shift could force these companies to rethink their business models as Walmart aims to consolidate more of its financial operations internally.

Future of Walmart’s Fintech Ventures

Speculation is growing about the potential future expansions of Walmart’s fintech capabilities. Analysts are curious whether One will evolve to offer branded credit cards, further enhancing Walmart’s financial service offerings. “It’s too soon to tell,” remarked a CNBC analyst during the interview, highlighting the cautious approach Walmart is taking in unveiling its complete fintech strategy. However, the potential for One to encompass features such as credit issuance is significant, considering Walmart’s vast retail network and customer base.

Integrating these financial services within Walmart’s ecosystem could be a game-changer for the retailer and its customers. By offering a seamless financial experience under the Walmart umbrella, One could enhance customer retention and increase average spend per visit. This strategic move aligns with Walmart’s long-term vision to remain a dominant player in the retail sector and establish a significant foothold in the financial services industry.

Walmart’s History and Strategy in Financial Services

Walmart’s foray into financial services is not new; the company has been attempting to penetrate this sector since the 1990s. Despite facing regulatory hurdles and opposition from banking lobbyists, Walmart has persisted in its efforts to integrate financial services into its offerings. This persistence reflects the retailer’s understanding of the financial sector’s potential profitability and its desire to diversify its revenue streams beyond the low-margin retail industry.

Historically, Walmart’s attempts to establish a banking division have been thwarted by regulatory challenges. However, the landscape appears to be changing as Walmart employs innovative strategies to circumvent these barriers. By partnering with Ribbit Capital, a renowned fintech VC firm known for its investments in Affirm and Robinhood, Walmart is well-positioned to overcome previous obstacles. This partnership underlines Walmart’s commitment to enter the financial services market and innovate within it.

Understanding 3D Secure Mandates

The 3D Secure protocol, initially developed by Visa under the name Verified by Visa, is an authentication protocol designed to enhance the security of online transactions. It provides an additional layer of verification for cardholders, thereby reducing the risk of fraudulent transactions. Over time, other major credit card networks, including MasterCard, American Express, and Discover, have adopted their protocol versions, such as MasterCard SecureCode and American Express SafeKey.

The 3D Secure mandates are regulatory requirements set forth by various payment networks and regulators. They require merchants to implement 3D Secure authentication for online transactions. These mandates aim to reduce fraud, enhance customer confidence, and create a safer e-commerce environment. While the specifics of the mandates may vary across regions, their overarching objective remains the same: increasing security for online transactions.

The Need for 3D Secure Mandates

The primary driver behind implementing 3D Secure mandates is the escalating problem of online fraud. As e-commerce thrives, fraudsters increasingly target online transactions, leading to substantial financial losses for merchants and consumers. By adding an extra layer of protection through 3D Secure authentication, merchants can mitigate these risks and verify the legitimacy of cardholders, thus bolstering security in the online shopping ecosystem.

Moreover, 3D Secure mandates play a crucial role in fostering consumer trust. In an era where data breaches and cyberattacks are all too common, consumers are more discerning about where they shop online. Merchants who prioritize security and implement 3D Secure authentication send a clear message to their customers: their financial information is safe and protected.

3D Secure mandates help merchants comply with various regulatory requirements, particularly in regions like the European Union. For instance, the revised Payment Services Directive (PSD2) necessitates strong customer authentication (SCA) for most online transactions. Implementing 3D Secure authentication is one way merchants can meet this requirement and ensure compliance with regulatory standards.

Navigating Compliance with 3D Secure Mandates

For merchants looking to comply with 3D Secure mandates, several key steps are essential:

Choose the Right 3D Secure Solution: Select a suitable 3D Secure solution that supports the latest protocol version (3D Secure 2.0) and offers improved customer experience and risk-based authentication.

Integrate the Solution: Integrate the chosen 3D Secure solution with your e-commerce platform, following the integration guidelines provided by the solution provider.

Inform Your Customers: Communicate the added security benefits of 3D Secure authentication to your customers and provide clear instructions on completing the verification steps during checkout.

Monitor and Optimize the Authentication Process: Continuously monitor the authentication process, utilize available analytics and reporting tools to identify areas of improvement, and optimize the risk-based authentication process in collaboration with your 3D Secure provider.

Stay Updated on Regional Mandates: Stay informed about the latest developments in 3D Secure mandates in your operating regions, subscribe to industry newsletters, join relevant forums, and maintain open lines of communication with your payment gateway or solution provider.

3D Secure mandates represent a significant step towards securing the rapidly evolving e-commerce landscape. By proactively complying with these mandates, merchants can protect their businesses and customers from fraud, build consumer trust, and effectively meet regulatory requirements. With the right approach and the appropriate 3D Secure solution, merchants can navigate the compliance landscape easily and confidently, ensuring all stakeholders a safer and more secure online shopping experience.

Understanding Your Market

The cornerstone of successful merchandising lies in understanding your target market. Through meticulous research and analysis of consumer needs, preferences, and trends, merchants can tailor their offerings to meet the demands of their clientele. By staying abreast of industry news and consumer behavior, businesses can ensure relevance and competitiveness in a rapidly evolving marketplace.

Building Strong Relationships

Establishing robust relationships with suppliers, customers, and partners is paramount to long-term success. Effective networking, collaboration, and transparent communication foster mutually beneficial partnerships that drive growth and innovation. By prioritizing honesty, reliability, and integrity, merchants can cultivate trust and loyalty among their stakeholders.

Providing Excellent Customer Service

Exceptional customer service is the bedrock of customer satisfaction and loyalty. Prompt response to inquiries and complaints, personalized support, and proactive engagement are vital for nurturing lasting relationships with customers. By soliciting feedback and leveraging it to enhance products and services, merchants can continuously improve their offerings and strengthen customer loyalty.

Maximizing Sales

Optimizing sales channels and leveraging various marketing strategies are essential for maximizing revenue. From online platforms to brick-and-mortar stores, merchants must harness the power of social media, email marketing, and search engine optimization to expand their reach and attract potential customers. Offering secure and seamless payment options instills confidence and trust, thereby facilitating transactions and driving sales.

Effective Tricks and Strategies

Upselling and cross-selling are effective tactics to boost sales and revenue. By offering complementary or upgraded products and services, merchants can enhance the shopping experience and encourage customers to make additional purchases. Discounts, promotions, and loyalty programs are powerful tools for attracting new customers and retaining existing ones, fostering brand loyalty and repeat business.

Strategies for Success

Successful merchants must maintain a keen eye on their finances, monitoring cash flow, expenses, and profits to ensure financial stability and profitability. Adapting to the ever-changing business landscape requires agility and resilience. By staying informed about industry trends, consumer behavior, and emerging technologies, merchants can pivot quickly to capitalize on new opportunities and remain competitive.

Conclusion

Mastering the art of being a merchant is a multifaceted endeavor that requires a combination of skills, strategies, and techniques. By understanding the market, building strong relationships, providing excellent customer service, maximizing sales, and employing effective tricks and strategies, merchants can navigate the complexities of commerce and achieve lasting success in today’s dynamic business environment.

Understanding Payment Risk

Payment risk refers to the potential loss associated with processing credit card transactions. This risk can stem from various factors, including fraud, chargebacks, and regulatory compliance issues. For merchants, classifying their business as low, medium, or high risk can significantly impact their access to payment processing services and the associated costs.

Low-Risk Merchants

Low-risk merchants typically operate in stable, well-regulated industries with low risk of chargebacks and fraudulent activity. Examples of low-risk businesses include brick-and-mortar retailers, restaurants, and personal service providers. Despite their low-risk classification, these merchants still need to remain vigilant, as credit card fraud in the U.S. exceeded $1.9 billion in 2021, according to the Federal Trade Commission.

Medium-Risk Merchants

Medium-risk merchants operate in industries with a moderate degree of regulatory oversight or have a higher rate of chargebacks. Medium-risk businesses include online retailers, subscription-based services, and ticket sales companies. These merchants may encounter more stringent underwriting processes, higher processing fees, or be required to maintain reserve accounts to cover potential losses.

High-Risk Merchants

High-risk merchants often operate in industries prone to regulatory changes, high chargeback ratios, and increased fraud risk. Examples of high-risk industries include gambling, entertainment, e-cigarettes, and telemarketing companies. Securing payment processing services can be challenging for high-risk merchants, as many payment service providers avoid servicing these businesses due to their inherent risks.

The Underwriting Process

For merchants, the underwriting process is a critical risk management strategy employed by payment service providers and acquiring banks. This process involves a comprehensive review of a business’s financial stability, processing history, creditworthiness, and compliance with relevant industry regulations. While rigorous, the underwriting process is necessary for high-risk businesses to secure payment processing services in a compliant fashion.

Compliance and Risk Management

Maintaining compliance with industry regulations is essential for businesses of all risk levels. This includes adhering to standards such as the Payment Card Industry Data Security Standard (PCI DSS) or GDPR. Fraud prevention tools, chargeback management strategies, and secure payment gateways are essential components of effective risk management for merchants.

Practical Tips for Merchants

1. Invest in fraud prevention tools.
2. Proactively manage chargebacks.
3. Stay compliant with industry regulations.
4. Select the right payment processor for your business.
5. Utilize secure payment gateways.
6. Consider implementing 3D Secure authentication for online transactions.
7. Finding the Right Payment Processor

For high-risk merchants struggling to find conventional payment processors, specialized high-risk merchant accounts may provide a solution. These accounts, offered by acquirers willing to accept a greater level of risk, can provide access to vital services tailored to the unique needs of high-risk businesses.

Conclusion

Navigating payment risk is a multifaceted challenge for merchants across all risk levels. By investing in robust fraud prevention tools, staying informed about regulatory changes, and building solid relationships with reliable payment processors, merchants can mitigate risk effectively and ensure the integrity of their payment processing operations. Understanding your business’s risk level is the first step toward implementing strategies to protect against potential losses and maintain a thriving business in today’s digital economy.

Harley Finkelstein, COO of Shopify, discusses how COVID has dramatically sped up the timeline for commerce moving online and has also moved Shopify closer to its goal of becoming the world’s first retail operating system:

Shopify Evolving Into World’s First Retail Operating System

Most people assume that Shopify is an ecommerce provider. We have more than a million stores on Shopify. If you were to aggregate our stores in the US we’d be the second-largest online retailer in America. Of course, we’re not a retailer but we’re a platform. But we now have these great economies of scale that we’re using to level the playing field for entrepreneurs and small businesses. That being said, what really Shopify is evolving into is the world’s first retail operating system. 

What we’re trying to figure out is what do brands and entrepreneurs and retailers need, not just now but in the future? We think the future of retail is retail everywhere. A brand that’s going to be successful in 5, 10 or 15 years from now needs to sell across any platform and across any channel where they have customers. This idea of enabling Shopify merchants to very easily push their products to the Amazon Marketplace or the eBay marketplace or now the Walmart marketplace, that gives them access to a new set of consumers. The idea is that it all feeds back in one centralized back-office, the retail operating system, which is Shopify. 

Then we’ve gone ahead and asked what else can we do for these merchants? Can we do capital? We’ve now given out about a billion dollars worth of cash advances and loans to small businesses. We’re doing fulfillment and we’re doing shipping. We’re increasing the scope and the relationship that we have with the million stores on Shopify. This is allowing them to become category leaders.

COVID Speeds Up The Ecommerce Revolution

From our view, it seems like the commerce world that would have existed in the year 2030 has really been pulled into the year 2020 (as a result of the COVID crisis). We’ve seen ecommerce as a percent of total retail go from 15 percent to 25 percent in the last three months. That’s the same growth rate that we’ve seen over the last 10 years. What really has emerged here is sort of this tale of two retail worlds. On one side you have these resilient retailers that are doing great, they’re pivoting, and they’re expanding their businesses. On the other side, you have these resistant retailers who have not made it. In many ways, it’s probably the most exciting time for retail in a very long time. 

We talk a lot about these direct to consumer brands that are becoming category leaders. The Allbirds and the Gymsharks who started on Shopify when they were very small and have grown to become the incumbents in their industry. Every 25 seconds a brand new entrepreneur makes his or her (products) for sale on Shopify. We talk a lot about those new startups, those new DTC brands. But actually, what we’re also seeing on Shopify are companies like Lindt Chocolate or Heinz ketchup or Chipotle. They are signing up for Shopify and basically from like five days from contract to launch they are completely changing their businesses. 

This resiliency isn’t simply in the hands of just the smallest of brands. Big companies are also beginning to think a lot more about how to stay resilient in this time. They’re moving well beyond ecommerce or thinking about offline commerce now. They’re thinking about how do they sell across social media? How do they sell across different marketplaces? So no, I don’t think it’s too late (to enter ecommerce) but I do think they have to rethink their strategies.

Farfetch plans to use their IPO windfall to dramatically improve their technology which they see as the best way to improve the consumer experience.

Farfetch Founder and CEO José Manuel Ferreira Neves recently discussed Farfetch and the online luxury brand industry on Bloomberg:

Online Luxury is Growing 25 Percent a Year

It’s a very unique opportunity. You have this amazing global industry. It’s $300 billion, the personal luxury goods industry and only 9 percent is online. There are two opportunities here really. One is the growth of online luxury which is going to grow to 25 percent a year for the next seven years. This is a $100 billion opportunity shift in online luxury.

The big question is how is technology going to help brands and retailers really improve the consumer experience in the physical store. This is something at Farfetch that we are very passionate about.

China is an Incredible Opportunity for Online Luxury

China is a very exciting opportunity. Chinese citizens are at the onset of the luxury industry, whether they shop at home or when they’re shopping abroad. Online penetration is very low in China so this means that there is an incredible growth runway for Farfetch in the territory.

That led to our partnership with JD.com where we have our own team. We have the Farfetch China app and website, we have local customer service, local payment systems, and local marketing. It’s a truly localized service. That is what’s driving incredible growth to the Farfetch brand in that region.

José Neves, founder and CEO of @farfetch, told us about the company’s grand ambitions for China at the WWD’s Men’s Wear Summit this week. https://t.co/MrMj7y5VCG

— Jing Daily | 精日传媒 (@JingDaily) March 29, 2018

WeChat is an amazing app with over 900 million users. It is the Instagram, plus WeChat, plus PayPal, etc. of China in one app. That is very powerful and very interesting. Now with our acquisition CuriosityChina we are powering the retail presence of 80 luxury brands. We think that is very interesting for the industry and we think that is probably something that we will see for the western world.

How Farfetch plans to capture the growth in online luxury e-commerce https://t.co/t9HI0igMFV pic.twitter.com/RjvAel79li

— Bloomberg TV (@BloombergTV) September 21, 2018

Brands Now Using Social and Digital Marketing Extensively

I think brands move cautiously and they choose their marketing channels very carefully. As these newer channels have developed the brands have adapted to them and their now using social media and digital media extensively to create desire, to drive discovery of new products obviously transactions as well.

It’s a gradual pace but it’s really exciting that were at that inflection point where the brands see this as a tremendous opportunity.

As part of the partnership between the two companies, “Coinbase will use Google Cloud’s powerful compute platform to process blockchain data at scale.” Coinbase will also benefit from Google’s fiber-optic network, using the speed of the service to help power machine-learning crypto insights.

Google plans to allow select customers to pay for cloud services via crypto, with customers in the Web3 space being given the opportunity first.

“We are excited Google Cloud has selected Coinbase to help bring Web3 to a new set of users and provide powerful solutions to developers,” said Brian Armstrong, Co-founder and CEO of Coinbase. “With more than 100 million verified users and 14,500 institutional clients, Coinbase has spent more than a decade building industry-leading products on top of blockchain technology. We could not ask for a better partner to help execute our vision of building a trusted bridge into the Web3 ecosystem.”

“We want to make building in Web3 faster and easier, and this partnership with Coinbase helps developers get one step closer to that goal,” said Thomas Kurian, CEO of Google Cloud. “We’re proud Coinbase has chosen Google Cloud as its strategic cloud partner, and we’re ready to serve the thriving global Web3 customer and partner ecosystem. Our focus is making it frictionless for all customers to take advantage of our scalability, reliability, security, and data services, so they can focus on innovation in the Web3 space.”

The Digital Payment Playing Field

Cryptocurrencies have emerged as significant players in digital payments. These digital currencies, housed on blockchain technology, include Bitcoin, Ethereum, and Tether. By 2023, the value of worldwide crypto payments reached $9.28 billion. The volume of global payments for Non-Fungible Tokens (NFTs), a type of crypto token, exceeds $1 billion. Blockchain technology also enables smart contracts that are autonomous, irreversible, and support unmodifiable payments, improve safety and fairness in various industries, such as casinos.

Central Bank Digital Currencies (CBDC) are revolutionizing the landscape of fiat currency. Eleven countries adopting digital forms like DCash in the Eastern Caribbean and e-CNY in China. CBDCs are under research in 46 countries and are in advanced planning stages in fifty-three countries. They signify a significant shift, especially in the online gambling sector, where 26% of people globally gamble online daily, showcasing the widespread adoption and acceptance of this digital transformation.

PayPal Casino Payments are another innovation in the realm of digital transactions. These are legal in specified areas, including Europe, India, Ireland, Japan, and North America. They depend on elements like BankID, Trustly, and Plaid. These payments not only augment the fluidity of transactions but also illustrate the extensive penetration of digital payment methods across various global territories. The average RTP rates by game type depicting promising prospects.

Future Trends

Predictions of payment growth from 2020 to 2025 depict a vibrant future, with almost all global territories experiencing increases in payment revenue. APAC is expected to increase 42%, North America 28%, and LATAM 40%. These predictions underscore the widespread growth of digital payment solutions, subsequently show a decline in physical and paper payments.

Today, diverse ways to send and receive money online have been established. This includes digital wallets like Cash App, PayPal, and Venmo, which should constitute 53% of e-commerce transactions by 2025. The versatility of options available—account-to-account transfers, credit or debit card payments represent 32% of payments. Digital wallets represent 49%, depict the dynamism and the varying preferences in the evolving payment playing field.

By 2030, cashless transaction volumes are expected to more than double. This reiterates the significant strides in digitization and the increasing obsolescence of cash. The shift to digital platforms is not merely a transition; it is a paradigm shift designed to meet the evolving needs of the modern consumer. This is vividly demonstrated by the external factors shaping our new digital payment environment and the reliance on advanced, secure, and real-time payments.

In Conclusion

The future of payments in the digital age is steering towards a more integrated, secure, and advanced direction. The rise of crypto and the advent of Central Bank Digital Currencies bring change to diverse digital wallets. Innovations include PayPal Casino Payments show the nature of the market. As the realms of technology and finance become more involved, the global payment market is bound become more complex. See more about the future of digital payments in the visual deep dive below:

Esther Crawford was head of Twitter Payments, putting her in charge of Twitter Blue. According to Platformer’s Zoë Schiffer, Crawford is the latest to be purged from Twitter since Elon Musk’s takeover.

Crawford’s departure is especially surprising since she was viewed as a Musk loyalist. in fact, she was one of those employees that answered Musk’s call to fully commit to the company.

The Verge’s Alex Heath says the layoff extends to most of “product org.”

Crawford’s departure makes one thing crystal clear: No one is safe in Musk’s Twitter.

According to Bloomberg, JPMorgan is experimenting with face and palm recognition as a way for users to identify themselves and make purchases. The pilot program is rolling out to a variety of select merchants, including both brick-and-mortar stores and a possible Formula 1 race in Miami.

“The evolution of consumer technology has created new expectations for shoppers,” Jean-Marc Thienpont, head of omnichannel solutions for JPMorgan’s payments business, said in the statement. “Merchants need to be ready to adapt to these new expectations.”

Customers will be able to enroll their face or palm via an in-store process, paving the way to use their biometrics from that point forward. JPMorgan is also making it possible to link other credit cards and payment methods rather than locking customers into JPMorgan-only cards.

“Being able to roll out this new biometrics-based payments scheme would enhance the race-day experience for our guests, as they will enjoy a new, faster checkout process,” Ramon Peneda, chief information officer for the Formula 1 Crypto.com Miami Grand Prix this year, said in the statement.

Cryptocurrency and blockchain tech are in the process of revolutionizing a range of industries, although none as much as the finance market. JPMorgan has started using blockchain for collateral settlements, Mastercard has partnered with Bakkt to support crypto, and now American Express is getting in on the action with its own crypto rewards credit card, in partnership with Abra.

According to TechCrunch, the company has not revealed what cryptocurrencies will be supported, but Abra founder and CEO Bill Barhydt told the outlet that customers will eventually be able to choose from multiple different cryptocurrencies.

American Express customers wanting to take advantage of the crypto rewards will need to be registered with Abra, where they will be able to use the company’s exchange to swap rewards for a variety of cryptocurrencies.

“Eventually, we’re also working on a solution that will allow you to use your existing crypto balance to affect your credit line, which is something we’ll probably launch in the future. I think that’s a big benefit because a lot of crypto holders are kind of penalized when it comes to banking and credit,” Barhydt said.

The new card is expected launch in the latter part of 2022.

Harley Finkelstein, COO of Shopify, discusses how COVID has dramatically sped up the timeline for commerce moving online and has also moved Shopify closer to its goal of becoming the world’s first retail operating system:

Shopify Evolving Into World’s First Retail Operating System

Most people assume that Shopify is an ecommerce provider. We have more than a million stores on Shopify. If you were to aggregate our stores in the US we’d be the second-largest online retailer in America. Of course, we’re not a retailer but we’re a platform. But we now have these great economies of scale that we’re using to level the playing field for entrepreneurs and small businesses. That being said, what really Shopify is evolving into is the world’s first retail operating system. 

What we’re trying to figure out is what do brands and entrepreneurs and retailers need, not just now but in the future? We think the future of retail is retail everywhere. A brand that’s going to be successful in 5, 10 or 15 years from now needs to sell across any platform and across any channel where they have customers. This idea of enabling Shopify merchants to very easily push their products to the Amazon Marketplace or the eBay marketplace or now the Walmart marketplace, that gives them access to a new set of consumers. The idea is that it all feeds back in one centralized back-office, the retail operating system, which is Shopify. 

Then we’ve gone ahead and asked what else can we do for these merchants? Can we do capital? We’ve now given out about a billion dollars worth of cash advances and loans to small businesses. We’re doing fulfillment and we’re doing shipping. We’re increasing the scope and the relationship that we have with the million stores on Shopify. This is allowing them to become category leaders.

COVID Speeds Up The Ecommerce Revolution

From our view, it seems like the commerce world that would have existed in the year 2030 has really been pulled into the year 2020 (as a result of the COVID crisis). We’ve seen ecommerce as a percent of total retail go from 15 percent to 25 percent in the last three months. That’s the same growth rate that we’ve seen over the last 10 years. What really has emerged here is sort of this tale of two retail worlds. On one side you have these resilient retailers that are doing great, they’re pivoting, and they’re expanding their businesses. On the other side, you have these resistant retailers who have not made it. In many ways, it’s probably the most exciting time for retail in a very long time. 

We talk a lot about these direct to consumer brands that are becoming category leaders. The Allbirds and the Gymsharks who started on Shopify when they were very small and have grown to become the incumbents in their industry. Every 25 seconds a brand new entrepreneur makes his or her (products) for sale on Shopify. We talk a lot about those new startups, those new DTC brands. But actually, what we’re also seeing on Shopify are companies like Lindt Chocolate or Heinz ketchup or Chipotle. They are signing up for Shopify and basically from like five days from contract to launch they are completely changing their businesses. 

This resiliency isn’t simply in the hands of just the smallest of brands. Big companies are also beginning to think a lot more about how to stay resilient in this time. They’re moving well beyond ecommerce or thinking about offline commerce now. They’re thinking about how do they sell across social media? How do they sell across different marketplaces? So no, I don’t think it’s too late (to enter ecommerce) but I do think they have to rethink their strategies.

Venmo is a popular secure payment platform owned by PayPal. Amazon announced that it will begin supporting Venmo on Amazon.com, as well as within the Amazon app. Support will begin rolling out to select Amazon customers today, with full support in the US in time for Black Friday.

“We want to offer customers payment options that are convenient, easy to use, and secure—and there’s no better time for that than the busy holiday season. Whether it’s paying with cash, buying now and paying later, or now paying via Venmo, our goal is to meet the needs and preferences of every Amazon customer,” said Max Bardon, vice president of Amazon Worldwide Payments. “We’re excited to continue to offer customers even more options when it comes to how and when they want to pay for their order.”

Once support is added, customers will be able to set up their Venmo account as a payment option and select it when making a purchase.

“We know that the Venmo community of nearly 90 million users value the safety, security, ease, and familiarity that paying with Venmo helps to bring to the checkout experience,” said Doug Bland, senior vice president and general manager, head of consumer, PayPal. “The ability to pay with Venmo on Amazon continues our ongoing commitment to offer the community more ways to spend, send, receive, and manage their money with Venmo.”

Stripe CEO Patrick Collison sent a memo to employees Thursday to deliver the bad news:

Today we’re announcing the hardest change we have had to make at Stripe to date. We’re reducing the size of our team by around 14% and saying goodbye to many talented Stripes in the process. If you are among those impacted, you will receive a notification email within the next 15 minutes. For those of you leaving: we’re very sorry to be taking this step and John and I are fully responsible for the decisions leading up to it.

Collison blamed the decision on a changing world, including significant financial headwinds that have become more apparent throughout 2022.

At the outset of the pandemic in 2020, the world rotated overnight towards e-commerce. We witnessed significantly higher growth rates over the course of 2020 and 2021 compared to what we had seen previously. As an organization, we transitioned into a new operating mode and both our revenue and payment volume have since grown more than 3x.

The world is now shifting again. We are facing stubborn inflation, energy shocks, higher interest rates, reduced investment budgets, and sparser startup funding. (Tech company earnings last week provided lots of examples of changing circumstances.) On Tuesday, a former Treasury Secretary said that the US faces “as complex a set of macroeconomic challenges as at any time in 75 years”, and many parts of the developed world appear to be headed for recession. We think that 2022 represents the beginning of a different economic climate.

The company is taking a number of steps to make the layoffs as painless as possible, including a minimum 14 weeks severance pay, with employees with more seniority receiving even more. The company will also pay all 2022 bonuses and pay employees for all unused PTO. Stripe will also “pay the cash equivalent of 6 months of existing healthcare premiums or healthcare continuation.” The company will also offer career support, immigration support for those on work visas, and more.

No layoff is ever good, but Stripe certainly deserves credit for trying to make the transition as seamless as possible.

Paypal earned its prominence by partnering with eBay and is widely recognized by most, if not all, online vendors today. It offers several features to help companies efficiently process and manage their finances and transactions. With digitalization increasing and e-commerce booming, the demand for platforms like PayPal has also been skyrocketing. Consequently, more competitors of PayPal are entering the market. This growing market saturation will likely make PayPal face challenges in the future:

1. High Competition

PayPal shared its plan to grow their average revenue per user (ARPU) by integrating new features and having the user hooked to platforms like Venmo, which provided peer-to-peer payment services to over 83 million users in the U.S. in 2021. However, Venmo faces intense competition in the market and threats from platforms like Zelle and Block’s Cash App.

Zelle alone grew its transaction volume by 59% in 2021, which amounted to $490 billion. Compared to this, Venmo only increased by 44%, which amounted to $230 billion. The competition is rising, and PayPal may be knocked out of its leading position at this growth rate. 

2. Frequent Layoffs 

PayPal is reportedly laying off its employees and closing certain operative departments, especially within the research and development team. This team was in-charge of PayPal’s cryptography, quantum computing, and distributed ledger technologies that enabled PayPal to be ahead of its competitors. The reason behind the layoffs was to boost PayPal’s ARPU and reduce the inefficiencies within the company. However, these layoffs can potentially drain the company of its talent. Innovation can be hindered, and the company may face problems if it continues to let go of its existing employees.

3. Inability To Meet Investor Targets

PayPal claimed in an investor presentation that the growth in active users will double by 2025 as compared to 2020. The number was supposed to increase from 377 million users in 2020 to 750 million active users in 2025, enabling PayPal to increase its revenue from $21.5 billion to $50 billion and gain massive growth.

However, PayPal’s active users only grew by 13% in 2021, with revenue growth of  $25.4 billion. It dropped its goal of increasing users in the last quarter, leaving investors confused and disappointed.  The under-delivery of results and inability to meet investor targets can lead to withdrawal of support from investors if frequent results are not delivered. This can also result in a large loss of goodwill for the company. Such decisions will likely have challenging consequences for PayPal. 

Endnote

PayPal is still one of the leading names in the world of digital payments and FinTech. However, it must evolve with time to keep up with the rising competition and meet the goals it has set to sustain its shareholders’ interests. If PayPal fails to do so, it may find itself falling behind in the market’s race. 

PayPal’s stock is depleting each day as the company keeps on over-promising and under-delivering. However, PayPal can still maintain its position by focusing on innovation and partnering up with competitive supporting businesses. This can help PayPal give their business a much-needed boost and assist in gaining back investors’ confidence. 

Why Is Credit Card Debt So Dangerous?

Outside of payday loans, credit card debt is just about the most dangerous form. There are several reasons why carrying a credit card balance can be so disastrous for your financial health. These reasons are so intense, that recent studies have shown that people with persistent credit card debt suffer from physical ailments later in life. According to an article from the New York Times:

“The new research tapped Department of Labor data to analyze the financial health of almost 7,900 baby boomers over more than a decade, from age 28 to 40, as well as their physical health at age 50. It found that people who carried consistently high levels of unsecured debt were 76 percent more likely to have pain that interfered with their daily life than people with no unsecured debt.”

So what about credit card debt specifically makes it so bad for you? There are two elements to credit cards that work in tandem, which, when left uncheck, can absolutely ruin your life.

The first issue with credit cards is that they’re extremely easy to use and don’t force you to stop spending at a healthy limit—as is the case with debit cards or cash. When you pay with credit, you’re able to buy significantly more than what’s actually affordable for your budget. It only takes doing this one time to find yourself in a perpetual cycle of debt.

And what keeps you in that cycle of debt? High interest rates. Credit card balances come with notoriously high interest rates, oftentimes over 20 percent. If you’re not paying off your balance in full each month, it can just keep growing and growing. It makes sense that credit card companies would want to charge a higher interest rate, since they’re offering unsecured debt with few requirements. But many consumers—whether out of want or need—are unable to keep themselves from overspending on their credit cards. Doing this can put you in a cycle so pernicious, it will affect your physical wellbeing.

How to Pay Off Credit Card Debt

If you’re looking for credit card debt help, you want to make a plan to pay it down as soon as possible. The longer you wait to take on your credit card debt, the more damage it will cause to your life.

Utilizing debt repayment strategies such as the snowball or avalanche methods can be helpful in getting yourself on-track to freedom from credit card debt. With the snowball method, you pay off your smallest bills in whole first, and work your way up from there. The idea is that by gaining momentum, you’re more likely to follow through with your debt repayment. By using the avalanche approach, you’ll save the most money. This is because you pay off your debts in order of highest interest rates.

Some people might also be able to utilize credit card balance transfer to help supercharge their debt repayment. This is where you move your credit card balances to a new account that offers a low introductory interest rate. Doing this can help you get ahead on your debts, without accumulating interest for a period of time.

What to Do if You Can’t Pay Off Your Credit Cards

Some people will find that none of these strategies are enough to help get them out of credit card debt. For individuals in this boat, it might be time to start looking for more intensive options, such as debt relief. Working with Freedom Debt Relief is in some respects the ultimate credit card debt help for consumers.

When you find the right debt relief partner, you have the chance to finally get out from under your oppressive debt—and in only a fraction of the time. This is possible because companies like Freedom Debt Relief can negotiate with your lenders in order to reach a settlement. While this won’t be the right path for everyone, those who have been unsuccessful in finding credit card debt help elsewhere might finally be able to reclaim their finances. If you’re too deep in debt, it might be time to finally seek out help for your credit card debt. This can be a difficult decision, but will be worth it if you can get your life back on track.

The Case for BNPL

BNPL answers concerns about payment due dates, upfront costs, and sacrificing expenditures unexpectedly. These systems also afford consumers flexibility. It appeals to budgeters, which allows them to allocate and reserve expenses for big buys over time. 69% of consumers abide by a budget according to plan, with 78% of pet owners following strict ones. 77% of pet parents are aware of buy now pay later payment methods and 56% have tried it for themselves with success. By integrating expenses into long-term spending habits, instead of forfeiting large sums out of pocket, buy now pay later caters to consumers by allowing them to pay at the convenience of their calendar.

Buy now pay later methods offer other lesser-known, but perhaps more exciting perks. Ones that are much appreciated by parents of furry friends. 43% express gratitude for the temporal flexibility delayed pay offers. Not only in providing a larger window for payment but even in extending the set end date as needed. 30% are attracted to these systems for their capacity to steer clear of credit card fees and prices paid due to interest, keeping those unforeseen charges afar. 22% of pet owners commend buy now pay later’s fixed and unwavering or tiered rates. These give everyone the same fair grounds and expectations for payment, without being blindsided by fine print policies.

What Buy Now Pay Later is Used to Pay

Both veterinarian and dental expenses need time to be paid in full. 38% of American pet owners pay for vet visits with a credit card. For only 18% of them, pet insurance covers the costs of vet fees in full. In dentistry, 40% of U.S. adults take one month, at minimum, to pay the full cost of a dentist visit. Both pet and people patients need more effective tools to help them cover healthcare expenses on their own time.

Interestingly, American East Coast residents express a higher preference for the implementation of buy now pay later. 55% report being very interested and more likely to use buy now pay later as opposed to 42% of West Coast dentist patients and pet parents who share the same sentiment.

In Conclusion

The results of a decisive study that gauged American adults’ holistic preference point to buying now and paying later over the ways we’ve always paid. 71% of U.S. dentistry patients cite a preference for BNPL. A whopping 86% of pet owners preferring this way of covering veterinarian costs. It’s time that healthcare professionals, practices, and institutions cater to the people’s preferred way to pay by offering more time. Also, they should offer convenience, as patients pay when the time is right.