Online payment gateway Payfast hosted the dedicated ecommerce section at Leaderex 2023, South Africa’s premier business event, bringing together industry leaders to explore trends in payments and fintech.
The event focused on topics ranging from the rise of artificial intelligence (AI) in fintech to the importance of financial inclusion.
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A Cashless Future and Digital Wallets
Payfast’s Managing Director, Brendon Williamson, highlighted the growing trend toward a cashless future. He emphasised that digital wallets, like Apple Pay and Samsung Pay, are becoming integral to daily life, and they are expected to account for over 50% of ecommerce payments by the end of 2024. Physical wallets may soon become obsolete as digital payment options gain dominance.
Williamson noted that these digital wallets offer convenience and security, making them appealing to consumers. With options like Apple Pay and Samsung Pay becoming embedded in our daily lives, physical wallets may soon be a thing of the past. This shift towards digital payments aligns with global trends where consumers seek hassle-free and secure payment methods.
Hyper-Personalized Shopping Experiences
Williamson also discussed the role of AI in shaping hyper-personalised shopping experiences. He cited examples such as cars prompting users to order takeout on their way home from work or AI-driven chatbots providing more effective and convenient assistance to consumers. The convenience and personalization offered by AI-driven solutions are driving innovations in the ecommerce industry.
Artificial intelligence is not limited to improving customer-facing interactions. David Adams, Chief Commercial Officer at Payfast, highlighted its significance in areas like fraud prevention and conversion analysis. AI’s ability to enhance business efficiency, reduce operational costs, and improve the customer journey makes it a crucial component of the payment ecosystem.
The Evolution of Payment Gateways
Adams discussed the evolution of payment gateways, emphasising three pillars for merchants aiming to provide an exceptional payment experience: seamlessness, frictionless, and embedding payments into the consumer journey. Merchants must focus on delivering a seamless and frictionless payment process to meet consumer expectations. Payment gateways play a critical role in enabling this.
Adams also emphasised the importance of payment gateways evolving to support merchants effectively. Collaboration between payment service providers and merchants is essential to elevate the payment experience and drive business growth. Payfast, as an online payment gateway, is committed to supporting merchants in achieving these goals.
Insights from Key Speakers
Other speakers at the event included Shabir Ahmed, Vice President of Customer Solutions Southern Africa at Mastercard, who delved into digital transformation in payments. Ahmed highlighted the rapid evolution of payment technologies and their impact on consumers and businesses. He emphasised the importance of adaptability in the fast-paced fintech landscape.
Cat Denoon-Stevens, Head of Product Incubation at Mukuru, focused on advancing financial inclusion in Africa. She discussed the role of fintech companies in reaching underserved populations and providing them with access to financial services. Financial inclusion remains a critical goal for the industry, with technology playing a pivotal role in achieving it.
Luca Merlo, Product Manager at Retail Capital, explored sustainability as a strategic imperative for South African SMEs. He highlighted the increasing importance of sustainable business practices and their positive impact on both the environment and the bottom line. As businesses embrace sustainability, fintech solutions can facilitate eco-friendly initiatives and support sustainable growth.
The discussions at Leaderex 2023 showcased the growing role of AI and digital wallets in shaping the future of payments and emphasised the need for financial inclusion and partnership between payment gateways and merchants. The evolving fintech landscape presents opportunities for businesses to enhance the payment experience, drive financial inclusion, and contribute to a more sustainable future.