Fintech is building an impeccable space for Small Businesses in the market

New innovations in financial technology are assisting small firms in starting out, says Siddharth Mehta IL&FS former director, growing, and succeeding. Small companies now have more alternatives than ever for finance, payment processing, money transfers, and other services thanks to fintech.

According to CNBC, global funding for fintech reached a new high in 2018, rising to $39 billion, an increase of 100% from the previous year. These are six ways that fintech is assisting small businesses.

1. Processing of Payments

Nowadays, the majority of retail shoppers prefer to pay with plastic. 61% of Americans prefer to use their debit or credit cards to make purchases at nearby stores, according to Federal Reserve research from 2017. To give clients alternatives to paying with cash, additional digital payment methods, such as mobile wallets, are also starting to emerge, claims Siddharth Mehta IL&FS, former director.

Small companies must grow to take debit and credit cards, as well as maybe mobile wallet payments, to increase transaction volume. Nevertheless, installing large point of sale equipment doesn't make sense for many small firms. Particularly mobile enterprises, such as food trucks and temporary clothes stores, need portable payment processors. Fintech comes to the aid.

2. E-business

Also, setting up an internet store is simple for small enterprises. According to Internet Retailer, ecommerce sales in the US increased by 15% in 2018. Several e-commerce systems with specialized assistance are available to small enterprises, including BigCommerce, Shopify, and 3dcart.

Even new digital payment methods are being adopted by some small enterprises, including the fee-free cryptocurrency Bitcoin asserts SiddharthMehta Bay Capital Founder. Some businesses presently accept Bitcoin, including Microsoft, Overstock.com, and CheapAir.com.

3. Financial Transfer

American small companies with an international attitude may use fintech-powered foreign exchange, international money transfer, and payment acceptance services to save expensive bank costs. International money transfer fintech businesses protect user data with encryption and adhere to legal and regulatory standards to protect customers' finances.

4. Finance

As per Siddharth Mehta of Bay Capital, Fintech has made small company loan applications easier and faster than before. Online lenders make obtaining a company loan simple, eliminating the need to visit a bank, schlep boxes of documentation, and go through a drawn-out evaluation procedure that can result in rejection.

5. Accounting

Using fintech solutions helps reduce accounting expenses for small firms. Small company owners may use accounting fintech to monitor their taxes, expenditures, payroll, contractor payments, deductions, and other financial obligations.

Simple digital accounting systems like Sage Accounting, FreshBooks, and QuickBooks Online enable small company owners to manage their accounts and access them from any location.

6. Consumer Insights & Engagement

Financial technology offers firms deep client insights, which is one of its main advantages. Fintech for payment processing gives information about consumer trends as well as information about interests, requirements, and wants. Small companies may enhance their marketing for prospects and existing consumers using the data supplied by fintech.

Conclusion!

An obstacle to small business development that has been disrupted by fintech's rise in the last ten years is the length of bank processes, lenders' unwillingness to fund startups, and the high cost of services like accountancy. Small businesses may utilize financial technology to increase process efficiency, reduce costs, and deliver better services to their clients thanks to the various benefits it offers.

Expect new finance technologies, like blockchain technology, to find their way into applications for small businesses. Cryptocurrencies are now powered by blockchain. According to Aberdeen, companies may utilize blockchain to authenticate individuals and verify sensitive transactions.

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