Five Trends Impacting Payments
Corporate treasury departments are increasingly being called upon to enable new, digital forms of commerce for their consumers and suppliers. This includes embracing real-time payments, digital wallets, pay-by-bank solutions, and virtual accounts. Here, Manish Jain, Global Head of Consumer & Retail Industries, J.P. Morgan, explains how treasurers can lay the groundwork for the future of shopping – by building agile and modern payments infrastructure – and help their business to gain a competitive edge.
The global pandemic, and subsequent lockdowns, gave rise to a period of rapid and significant digital transformation in the world of shopping. This was a trend waiting to happen, according to Jain. “Even pre-Covid-19, digital channels were growing at a higher rate than physical channels, but the share of the pie remained relatively small. The pandemic swiftly became the trigger that forced digital channels to become mainstream. And even as the world emerges from Covid-19, digitisation and automation will continue to increase, given workforce shortages, continued disruption in supply chains, and inflationary pressures on the economy.”
Global Head of Consumer & Retail Industries, J.P. Morgan
In other words, the pandemic served to achieve, in a matter of months, the digital progress that the retail industry had been working towards for years. In turn, this led to changing business models; which started with direct-to-consumer (D2C) models and evolved into digital marketplaces, expanding the nature of global consumer commerce.