Hannes van Rensburg, CEO at Fundamo (http://www.fundamo.com) joins us to discuss the converging trends driving mobile payments and what it means for your business... Read the Transcript

Hannes van Rensburg Chief Executive Fundamo http://jansevanrensburg.co.za

Van Rensburg is a founding member of Fundamo. Prior to the formation of Fundamo, he was the CIO of the Sanlam Group, a past board member of a number of IT-related companies, and has also performed the role of IT consultant to many major South African corporations. He has BSc degrees in Physics & Chemistry as well as in Information Systems, and a MSc in Reactor Physics. He is the author of a widely read blog on mobile banking and an active participant in mobile banking conferences. Having launched the first mobile banking solution in 1999, Hannes is often seen as the pioneer of mobile banking.

In this article, we explore how all things digital are driving change in payment methods. The world is quickly becoming a digital landscape due to increasing use of technological devices. Given the rise in mobile usage and lack of paper transactions and interactions of any kind, the world has entered a new realm of possibilities... especially when it comes to paying for products and services. First, PayPal allowed winning auction bidders the same fast and easy transactions that they enjoyed when they won their items because they didn’t have to worry about how to pay someone who may live in another country. Paypal gave businesses the ability to accept credit cards and checks without spending a fortune. Producers now manage the distribution cycle and are being rewarded monetarily.  This new drive to a cashless society through the digital revolution, the idea of the micro-annoyance (micro-purchase) has reared its ugly head. Cashless makes it easier to conduct business online and, increasingly, in local establishments. In the next couple of years, watch the digital revolution continue to change the way customers use money. In one direction, PayPal and similar services will continue to grasp market share for online payment methods, encouraging competitors but becoming the brand name of hassle free purchases. The number of small businesses continue to grow as the economy encourages further entrepreneurial activity and they want easier payment options. As digital transactions continue to increase, there is a need to have one type of payment method.  Our mobile phones will be our identity and they will carry our personal information in their memory chips. To create advantage from these converging trends, consider the following. Digital payment methods are driving major precursor industry trends. Likewise, trends are converging to drive the future of digital payment. Digital payment methods will likely converge in the coming years. Decide what digital payment will look like in every aspect of your business. Lastly, understand what markets digital payments can unlock for your business.