The two M&A’s that still are still the center of attraction; FIS’s $43 billion contract to take over Worldpay, and Fiserv’s $22 billion transaction to acquire First Data are a big step towards the confluence between financial tech and merchant acquiring. But analysts say these acquisitions are only baby steps to a bigger revolution.
For now, we will now see relatively smaller developments to improve the existing state of affairs, like streamlining open banking for financial firms, which have formerly seen PSD2 as an overpriced compliance task. These deals have also paved the way to the emerging digital ID and minimized the long-standing gaps keeping business caught back in paper billing.
To achieve this goal, “it’s important to have multiple assets channeled into our ecosystem,” said Elena Whisler, FIS head of international product management.
Disparities between legacy and new systems slow commercial payments, said Gilles Ubaghs, an analyst at Aite. Most accounts still run their payable and receivable accounts on separate systems, and most suppliers are offering services on one end or another. That, combined with the rush of the payment channels and tools in use from virtual cards to checks makes it a bother for any firm looking to upgrade.
“These major payment deals are helping these players to achieve further automation in ecommerce payments,” Ubaghs said.
Having a few payment avenues is more unsatisfying for tech upgrades than business transactions. B2B is now valued at a staggering $36 trillion in per year volume, but it still lags in digitization in spite of the chance to make the most of digital business payments to open doors for more lending, discounting among other services.
FPX chief experience officer Mark Bartlett also blamed the slow automation in supply chain payments, while the Vice President for Coupa, Ravi Thakur warned that banks and merchant acquirers who can’t promote digital B2B should watch out for fintech companies.
Still, checks can complete over half of the B2B transactions, notwithstanding the full cost and time perks of automation in business transactions.
“Even if we have a different grocery store, we still need to use the older store you’re used to — even if the new method is easier,” said Whisler.
Now, FIS is taking over Worldpay to explore the payment space, achieve automation and make the most of the suggestion that businesses are ready to automate supply chain transactions. FIS is also implementing its API for business payments, as the deal awaits completion. Merchants can reach them through the Worldpay contact number to find out more about these services
Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of online business. His understanding of the industry has helped thousands of business owners save money and time. Merchants can call theWorldpay contact number to find out more about online retail services.