The World of Cashless Payments
More and more companies want to control how digital payments are authorized
When it comes to contactless payment, the industry is being disrupted by a brand new pre-IPO company looking to bring forth a new payment issuing and processing solution. But before we get to that company, let’s talk a bit about the market in general. After all, the world of cashless payment is certainly becoming more and more like the solution it’s been said to be for so long. But are consumers really okay with that? Well, we can simply take a look at some of the companies that use cashless payment solutions to get some insight.
What Is The Market Environment?
It should come as no surprise that the world is becoming increasingly more digital. And in the wake of COVID-19, consumers all around the world are looking to mobile technology to get their fix. With restaurant dining rooms closed or at half capacity, with consumers feeling apprehensive about big crowds on mass transit, and with businesses looking for ways to leverage technology to sell their products, the market for contactless payment is expanding faster than ever before.
Let’s think about it: companies like DoorDash and Grubhub issue virtual cards for their drivers. Instead of drivers picking up food from restaurants and signing off on a credit card receipt with a consumer’s name, these companies allow the consumer to pay them directly. From there, the food is actually purchased with a virtual card in the name of the company. The consumer is free from all payment liabilities once their payment is submitted to the company.
Uber, on the other hand, wants to pave the way for the free flow of money between the company and its massive army of drivers. How do they do this? They use virtual cards to pay their drivers almost instantly after they complete a ride. Payments are quickly deposited into the accounts of drivers once a ride is completed with virtually no waiting period.
The Motor Behind Digital Payments
With that in mind, it’s absolutely critical to see the fact that digital payments are becoming the new norm. And according to Marqeta, a frontrunner in the digital payments sector, “society is contemplating a cashless future.” While a truly cashless society may still be a ways off, there is increasing evidence that proves that society, in general, is going towards the cashless standard. The before mentioned company Marqeta has foreseen this trend already in 2010 and now fuels the likes of DoorDash, Uber, and co. with its digital payment infrastructure. Marqeta has grown exponentially, attracting the partnerships of some of the largest digital businesses. They have been so successful that they are in their final round of funding before their official IPO.
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