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A study by PWC predicts that global cashless payment volumes will double from 2020 to 2025, to almost 1.9 trillion transactions, and will almost triple by 2030, due to the changes brought by the COVID pandemic. We’re going to continue to see these effects from the pandemic ripple throughout the next few years.
This week on The Small Business Radio Show, Stoyan Kenderov is the Chief Product and Technology Officer at Plastiq, leads the product efforts for one of the most innovative and disruptive payments companies in America. Prior to Plastiq, Stoyan worked at Quicken, where he held various business and product leadership roles until ultimately becoming the Chief Product and Design Officer at Lending Club.
Interview with Stoyan Kenderov of Plastiq
Stoyan discusses how credit cards have existed for 70 years, but everything is faster today and moving to the cloud. He adds that “85% of business suppliers don’t accept cards because the cost of acceptance is high and 60% of businesses are still using checks despite the high cost of check payments.” (Goldman Sachs says it costs $22 to accept a check.)
One important trend Stoyan says is driving the faster money movement is the increased adoption of embedded payments which Plastiq helps with. He emphasizes that “faced with COVID-19, businesses had to re-tool and become eCommerce businesses almost overnight. With embedded payments and embedded finance, every company can be a fintech company – and we’re going to continue to see that adoption intensify in the next few years, as businesses embrace these payment solutions.”
In this recovery economy, cash flow becomes tight. Stoyan explains that “Plastiq helps alleviate significant up-front costs for production and inventory by floating payments through our platform, extending the payment terms, so that the businesses are able to see returns from sales before their payments are due. This is particularly effective for overseas vendors”.
Image: Stoyan Kenderov
This article, “How Your Business Can Benefit from the Cashless Payment Revolution” was first published on Small Business Trends