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Point-of-Sale (POS) Technology Trends in 2024

Point of Sale (POS) is one of the most critical aspects of every day-to-day transaction in a service business. It is essentially a helpful system of different hardware and software that can handle all sales-related transactions in a business. POS is a thorough service or technology that includes devices such as a card reader, receipt printers, barcode scanners, and more. It helps in more than just checking the customer and their purchases. Rather, POS systems are slowly finding functions in more areas. Used mostly by restaurants and other similar B2C services, POS is used mainly to simplify sales management.

2024 is expected to be a landmark year for point-of-sale technology trends. With rapid growth in the AI field, POS is anticipated to adapt to this new technology quickly. Besides AI, more advancements in Data Science and Machine Learning are expected to reshape the way POS scanners help in sales management. From small business owners to restaurant chains, POS will likely become more user-friendly for everyone. These systems are also expected to manage transactions, keep track of inventory, and store detailed sales data with greater accuracy.

What is Point-of-Sale Technology

Point-of-sale technology is mostly used in restaurants and other retail services that let customers make payments quickly via card or other digital methods. From the perspective of the staff or the management, a POS helps them record sales data and store it for future use.

From the hardware point of view, this technology uses computer interfaces, tablets, card readers, receipt printers, and barcode scanners. They also include other hardware components, such as restaurant kitchen display systems, depending on the industry in which they are used.

Which Businesses Benefit from Using Point-of-Sale Technology

Point of Sale technology benefits many businesses, with the following being its main user base:

Retail
Restaurants
Hospitality

Retailers use POS systems to stay updated on inventory levels, smoothly process all sales transactions, and analyze the data later. In restaurants especially, POS systems manage orders and seating arrangements and help maintain a good customer service experience. Other service-based businesses use this same technology for scheduling important activities and payments. Overall, POS technology is a valuable asset for any business that involves sales transactions for its efficiency and accuracy in day-to-day operations.

POS Trends to Watch Out for in 2024

The following is a list of top POS trends to watch out for in 2024:

Integration of Artificial Intelligence

As discussed above, AI is expected to change how POS works. One of the best features of AI integration is its agility, which means POS will now quickly adapt to the different needs of every industry.

Besides AI, machine learning can also bring significant changes to POS systems. ML algorithms can analyze the type of products a customer likes and the ones they continuously purchase and store them to provide personalized recommendations for future purposes.

In 2024, this level of personalization is expected to become the norm for POS Systems. This technology, which was once meant for checkouts only, will now hold onto data to give owners and managers better insights into how their business is performing.

Contactless and Mobile Payments

With COVID-19, people have witnessed a surge in using contactless payment methods. This trend gave way to contactless payments using mobile phones and similar devices, which will likely transcend from a temporary to a new norm. Customers already prefer quick and secure transactions requiring zero physical contact, and businesses using POS can easily include contactless payment options in their POS systems.

Speaking of mobile phones, integrating mobile POS systems is becoming more popular among relevant sectors as it allows businesses to conduct transactions anywhere within store premises. This leap in technology will benefit retailers considerably with limited store space. This will also help those looking to eliminate traditional checkout counters gradually.

Omnichannel Retailing

The landscape of omnichannel retailing continues to evolve, and by 2024, POS systems will be instrumental in seamlessly integrating online and offline channels.

Nowadays, shoppers expect a streamlined and unified shopping experience, regardless of purchasing from a brand’s physical store, website, or mobile app.

With the latest advancements in POS technology, retailers can effectively embrace omnichannel retailing by synchronizing inventory, customer data, and sales information across multiple platforms. This streamlines the shopping process for customers, who can quickly begin their journey on one channel and seamlessly switch to another without disruptions.

For example, customers can browse products on a brand’s website, try them at a physical store, and then conveniently complete their purchase on a mobile device.

Improved Security Measures

Cyber threats are becoming more dangerous and severe with each passing year. Detecting them, too, has become a matter of concern for many. For POS systems, which handle vast amounts of sensitive customer information, most importantly financial information, strengthening their cybersecurity measures should be a priority.

Modern POS Systems already come with end-to-end encryption, ensuring that sensitive data is protected throughout the transaction process. Tokenization is another security measure that gradually replaces cardholder data, such as card numbers and unique IDs, with random numbers known as tokens.

Better Data Integration

POS systems now have the power to integrate data for future uses. This data is likely to help business owners strategize accordingly. Integrating POS systems with other business tools, such as Customer Relationship Management (CRM) software and inventory management systems, is becoming more common. POS is the point where the sales transaction takes place, which makes it a flawless source for data collection.

This accessible data guarantees companies the chance to improve consumer interactions and take care of other processes effortlessly. Since other sectors are making great improvements using data, this will let POS promptly adjust to shifting market trends.

Personalized Shopping

Using advanced POS technologies, business owners can use data from customer purchases to further plan their interactions with customers. Personalized shopping experiences have become a norm, and enabling it through POS means that many businesses, which were earlier missing out on this technology, will be able to start enjoying its benefits. POS systems can recommend proper products, discounts, or promotions in real-time.

From promotions to bringing back customers to the same businesses to target them with proper loyalty programs, POS personalization can make retail even more customer-oriented. As businesses use POS personalization, they will build stronger connections with customers, creating a shopping environment that is not just transactional but deeply individualized and engaging.

Adapting Cloud-Hosted POS

Cloud-hosted POS solutions, seamlessly integrated with POS hardware, offer automated backup and syncing of data through a remote server. This feature means safekeeping and updating information about one’s retail business becomes easier. It also helps provide a central storage or inventory for sales data and other important customer information.

Moreover, cloud-based POS software allows one to control their business from virtually anywhere. A cloud-hosted POS solution makes all business data accessible over the cloud, which can be accessed via the Internet. This enables businesses to effortlessly check the number of daily sales, employee productivity reports, and materials in their inventory using their devices.

It’s expected that using cloud-hosted POS services will gain significant popularity in the upcoming years as an important part of the newest POS trends in 2024. Many businesses are already enjoying the advantages of these features.

With the help of this new technology, businesses can quickly start working from new locations, introducing new products, and starting new sales channels, all thanks to the transition from traditional retail point-of-sale systems to cloud-based solutions. Due to its independence from non-portable hardware fixed to one place, a cloud-based point-of-sale service will allow businesses to generate more revenue without needing huge investments.

POS for Data Analytics

Point of Sale data analytics is crucial to contemporary retail operations. Retailers can gain essential insights into customers’ behavior, preferences, and purchase habits by utilizing the data supplied by point-of-sale systems. Enterprises can discern patterns, enhance inventory control, and customize their marketing tactics by integrating point-of-sale data with other client information.

Retailers can make data-driven, well-informed decisions with the help of POS data analytics, giving them a competitive edge in a changing market. Businesses may improve their operations and remain adaptable to changing consumer trends by incorporating powerful analytics capabilities into POS systems, which can be used for anything from forecasting product demand to creating more personalized shopping experiences.

Simpler POS Hardware

A noticeable development in Point-of-Sale technology is the move toward more straightforward, easier-to-use hardware solutions. Slicker, more effective replacements for large, traditional monitors are iPads and tablets. This change aims to improve user experience by streamlining and simplifying POS procedures.

Less complicated point-of-sale hardware promotes mobility and flexibility in retail settings and helps keep checkout areas tidy. Companies increasingly realize the importance of giving customers and staff an intuitive interface. As a result, the focus on minimalism in point-of-sale hardware signifies a dedication to enhancing operational effectiveness while accommodating the evolving inclinations of technologically proficient customers.

Customer Loyalty Programs

Retailers who want to build long-lasting customer ties must continue implementing customer loyalty programs. These programs have developed in the POS technology setting by incorporating cutting-edge functionality into POS systems. POS systems typically come integrated with loyalty program features these days, enabling companies to provide individualized rewards quickly depending on client loyalty.

Retailers use these initiatives to promote brand affinity, reward consumer loyalty, and promote repeat business. Easy access to loyalty programs and their connection with POS systems make for a unified and smooth shopping experience. Businesses use point-of-sale technology to enhance client connections and create brand loyalty in response to changing customer expectations.

How Many POS Systems Are There

The number of POS systems in the market is extensive and continually expanding. Numerous providers are catering to businesses of various sizes and industries. Well-known options include MicroSale, Lightspeed, Toast POS, and more.

The diversity in POS systems allows firms to choose solutions that align with their specific needs, ensuring optimal functionality and scalability. The continually evolving market ensures that businesses can select a POS system tailored to their industry, size, and unique requirements, reflecting the dynamic nature of technology in meeting the diverse demands of companies.

What is the Hardware Component of a POS system

The hardware components of a POS system include the following:

A central processing unit (CPU)
Monitor
Cash drawer
Receipt printer
Barcode scanner
Card reader.

The CPU is the system’s brain, running the POS software, while the monitor displays transaction details. The cash drawer securely stores the money, and the receipt printer prints out customer receipts. Barcode scanners fasten product scanning, and card readers facilitate electronic payments.

This comprehensive set of hardware parts ensures a smooth sailing Point of Sale experience. Businesses can customize their POS hardware setup based on their specific requirements, allowing flexibility and scalability in adapting to various transaction needs and all types of business environments.

Anticipating POS Trends in 2024

The current trends in POS technology underscore a transformative period for the retail industry. From the widespread adoption of contactless payments and the integration of AI to the rise of multichannel commerce and the emphasis on customer loyalty, businesses are embracing advanced POS solutions to stay competitive.

Cloud-based systems, mobile POS options, and data analytics are becoming core components, allowing retailers to improve productivity, personalize customer interactions, and make a lasting impact in the sales management sector. Staying ahead of these trends is the need of the moment for businesses looking to thrive by using POS services in the long term.

Social Media Marketing Trends for 2024

Adapting to emerging trends is essential to staying competitive and creative in social media marketing. 2024 is already in full swing, and the social media marketing space is abuzz with debates on the next big thing. Almost every social media marketer would agree that this year is set to witness some fantastic transformative shifts.

Marketers look forward to redefined strategies that will reshape digital marketing as a profession. Continuous technological advancements, changing consumer behaviors, and evolving platform dynamics will likely set the stage for an exciting year ahead.

In this article, we will delve into the upcoming social media marketing trends for 2024 by examining 15 trends that are expected to dominate. From integrating new marketing technologies to a more in-depth understanding of user preferences, these trends offer insights and strategies that will empower marketers even further.

What Makes Up Social Media Trends?

Trends are more than just fleeting moments – these are critical phenomena that captivate users’ attention and shape the degree of content consumption. They often leave a lasting impact on the user, leading to its recreation and furthering the impact of social media. Several factors contribute to developing and succeeding in a viral social media trend (like Stanley Tumblers), mixing user behavior, platform features, and culture, especially pop-culture dynamics.

The following are a few elements that dictate social media trends:

User Engagement and Participation

Viral Potential: Trends often possess the contagious quality of going viral, spreading rapidly across most platforms. Their popularity is fueled by user engagement and sharing.
Audience Relevance: Users relate with trends when they work in unison with the interests, preferences, and demographics of the target audience. This, in turn, ensures widespread participation.

The Role of the Platform

Algorithm Function: Social media platforms are driven by complex algorithms and play a pivotal role in pushing trends towards virality. The algorithm plays the role of a promoter in showcasing content to a broader audience based on engagement metrics.
Features and Innovations: Recently popularized features like Instagram Stories or TikTok’s short-form videos can contribute towards creating trends by providing users with innovative ways to create and consume content.

Cultural and Societal Influences

Timeliness and Relevance: Trends often arise from current events, societal shifts, or cultural moments. They gain momentum by tapping into the collective consciousness of social media users. A couple of bright examples of this feature are moment marketing and meme marketing.
Inclusivity and Diversity: Trends that embrace inclusivity and diversity tend to resonate more widely, reflecting users’ varied perspectives and experiences. It is safer to avoid trends that harm or intend to harm any group or individual.

Creator Influence

Influencer Impact: Influencers and content creators often serve as trendsetters. Hence, brands trying to increase their visibility tend to collaborate with them. The brands leverage their audience and creativity to start and popularize trends.
Collaborative Creation: Trends thrive when users actively participate in their creation. The more people engage with a trend, the more successful it is. It builds a sense of community and shared creativity among users of all levels.

Top Social Media Marketing Trends to Expect in 2024

Social media is showing no signs of slowing down. It would not be too ambitious to say that social media is the number one source of entertainment for many, especially young millennials and Gen-Z. Keeping note of how social media has evolved over the past five years and its current pace, the following can be expected as the top social media trends to emerge in 2024.

AI-Powered Social Media Management

Artificial intelligence’s integration into social media management will change how marketers approach daily tasks. Almost 80% of marketers say that AI applications and websites have significantly increased workflow efficiency and saved time.

Recent years have seen a notable increase in specific AI applications such as ChatGPT and Copy AI for social media’s text content generation. A Hootsuite analysis indicates that 75% of social media marketers intend to entirely rewrite and update text using AI in 2024—a startling 103% rise from 2023.

Many social media marketers now use AI to generate captivating captions, develop new campaign ideas, and perform other tasks.

AI Image Generation

Using AI to edit already-taken photos is becoming increasingly common; one of the most well-known AI-powered picture editors is Canva. Users can easily modify images with Canva‘s AI features, which include object removal, image expander, and background change.

Similarly, Generative AI has made image generation easier with tools such as DALL-e and Stable Diffusion, which have become valuable to graphic designers. AI images are here to stay, whether used for image references, ideas, or creation.

The use of AI in social media duties extends beyond content production. It includes planning content, monitoring social media, researching competitors, gathering and analyzing data, and reporting on key performance indicators. Social media managers can operate more efficiently by incorporating AI into these areas.

TikTok’s Continued Popularity Among Gen Z

While Facebook remains the most popular social media platform overall, the under-25 demographic is increasingly gravitating towards TikTok. Facebook’s user base under 25 years has declined to under 18%, signaling a significant preference shift among younger generations. In contrast, TikTok has emerged as the app of choice for Gen Z, with 78% of them using the platform in 2023 and two-thirds using it daily.

Influencers like the D’Amelio sisters, Addison Rae, and several local influencers have made their mark on TikTok by launching trends and collaborating with well-known brands. Brands such as Panera Bread, Folgers Coffee, and Dunkin’ Donuts have successfully launched ads on TikTok that target Generation Z. The fact that about a quarter of small firms using TikTok for marketing reported a good return on investment highlights how well the platform works to connect and reach younger audiences.

Social media for Customer Support

For today’s consumers, prompt customer service has become essential. Social media platforms have become the primary avenue for customer service, meeting the needs of customers who want prompt, individualized attention. Many firms are deploying AI-powered chatbots for customer service on social media to address the demand for prompt responses.

These chatbots use conversational AI to reply to messages on different social media platforms, whether they are posts or direct messages. As proven by an Instagram food influencer who utilized a chatbot to interact with thousands of comments and provide each user with a personalized recipe, their possibilities go beyond automated responses. Customer service on social media is more productive and efficient when AI and human-like engagement are combined.

Continued Growth of Social Media Usage

Social media is used by about 5 billion people worldwide, which makes up more than 61% of the world’s population. From August to October 2023, an average of 9.6 users would join social media per second, a 4.5% rise from the previous year. By 2025, social media viewership is expected to surpass conventional TV’s due to its steady rise.

The average user spends over a third of their online time on social media. Calls for social media detoxification and programs encouraging less reliance, such as the National Day of Unplugging and the digital minimalism movement, have been sparked by the increasing reliance on social media.

Social media for Advertising

The amount spent on digital advertisements has increased significantly during the last five years as more users are signing up to social media platforms. In 2024, it is expected that businesses in the US alone will spend billions of dollars on paid social media content and advertising. This means that targeted and paid ads will likely take up a significant portion of the marketing budget.

While businesses already spend a good amount on social media and TV ads, projections show that by the end of the decade, the proportion of spending on social media will be much higher than that on television.

It is anticipated that Facebook and Instagram parent company Meta will rule the social media advertising space. This change has led to social media’s current position as the leader in the advertising sector, with its influence extending across multiple industries and media platforms.

Increased Prevalence of Augmented Reality

The integration of augmented reality into social media platforms is gaining momentum. AR filters and effects have already become popular on platforms like Instagram and Snapchat, but in 2024, we can expect even more advanced and immersive AR experiences.

From virtual try-on experiences for products to interactive games juxtaposed in the real world, AR is set to change how users engage with content on social media. With tools like Apple’s Vision Pro and Meta’s VR Headsets, users would be able to check their social media feeds from these glasses – making AR a more approachable reality.

AI Influencers on the Rise

Virtual and AI-generated influencers—computer-generated personas with distinct personalities and styles—are growing in power in social media. To take advantage of their distinctiveness and capacity for audience engagement, brands are working with virtual influencers on marketing campaigns more and more. The distinction between digital and real-world productions is becoming hazier due to this trend, which creates new avenues for artistic expression and brand image on social media.

Short-form Video Will Continue to Dominate

In 2024, short-form videos, best pushed by sites like TikTok, will remain dominant. User interaction is dominated by concise, interesting information on various social media channels. This trend demonstrates its effectiveness for narrative and entertainment.

The popularity of short-form videos will continue despite people’s decreasing attention spans. Producers and advertisers will keep using eye-catching or quirky visuals to draw viewers. The format’s broad acceptance highlights the short-form video’s ongoing dominance in defining the social media experience and its continuous popularity and influence.

Social Commerce to Become Inseparable

The fusion of social media with e-commerce, or “social commerce,” is expected to increase even more in 2024. By seamlessly integrating commerce functions, platforms improve user experiences by allowing customers to browse and purchase items without leaving the app. Influencers showcase and sell products in real-time during live shopping events, which are becoming increasingly popular. This creates a dynamic economy on social media.

Converging social engagement and ease of shopping highlights how digital retail has evolved, creating a more dynamic and captivating e-commerce environment inside social media.

Social Media Marketing Trends for 2024 and Beyond

One thing becomes clear as we wrap up our in-depth understanding of the social media marketing trends in 2024: success in the digital sphere wholly depends on adaptability. Social media marketing is changing and dynamic, requiring continuous attention to detail and a proactive approach rather than reactive.

The secret is to recognize and take advantage of these trends to create meaningful relationships with target audiences, whether using AI to create better user experiences or embracing the power of virtual personas. Marketers who are aware of new trends are well-positioned to prosper in a world where change is the only constant.

2024 is an opportunity for marketers to start towards a path that corresponds with the current trends in social media marketing, as it collaborates creativity, strategy, and adaptability.

FAQs

Mitchell Gold Bankruptcy Update

High-end furniture brand Mitchell Gold, with 27 stores across 14 states and some Canadian provinces, decided to shut down all its stores over the weekend of August 27, 2023. This was due to difficulties in securing the funds for business operations it had expected. But in the turn of events, surprising everyone, on September 6, The Mitchell Gold Co., LLC filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware. Subsequently, they also filed for Chapter 7 liquidation. Here are some important updates about Mitchell Gold bankruptcy.

Over 2000 products ready for customer dispatch were held up with delivery partner Ryder due to “pending” payment issues. Mitchell Gold stores’ sudden closure left customers and employees surprised and uncertain about what would happen. The bankruptcy filings revealed challenges that had been brewing behind the scenes.

Key Takeaways

Mitchell Gold, a top-brand furniture business, faced significant difficulties when shifting from Chapter 11 bankruptcy to Chapter 7. It moved from looking for ways to restructure to selling off all assets to clear existing debts.
Surya, a company dealing in home goods, cleverly bought Mitchell Gold’s assets. They plan to bring back the brand as a business-only resource for interior designers and design-focused stores, hence stopping direct consumer sales.
When the bankruptcy happened, many customer orders were not delivered, with over 2,000 Mitchell Gold items stuck at Ryder, the logistics firm. Legal and process issues began when Ryder demanded payment upfront and added daily storage fees.
A new twist happened when Ryder got court approval to send paid-for items to customers. However, those customers will have to pay for extra storage and delivery costs.

Mitchell Gold Bankruptcy: Impact On Operations, Logistics, And Customer Orders

Image source Mitchell Gold Website(The website is now closed)

There had been logistical and financial difficulties following the unexpected closure and economic downturn of Mitchell Gold Co. This led to confusion over thousands of shipments ready to be shipped to the customers. After first filing under Chapter 11 bankruptcy, Mitchell Gold Co. is now under Chapter 7 liquidation. This move represents a departure from trying debt restructuring and reorganization in favor of a more thorough asset sale to pay off existing debts to creditors.

Selling non-exempt assets is a requirement in a Chapter 7 filing to pay back creditors. With the sale of its remaining assets to fulfill its debts, Mitchell Gold’s case signifies the end of the business’s operations.

Surya, a home furnishings company based in Cartersville, Georgia, specializing in textiles, rugs, decor, and lighting furniture, has successfully acquired Mitchell Gold’s assets. These assets include intellectual property, specific inventory, and manufacturing facilities. In an official statement, Surya intends to reintroduce Mitchell Gold as an exclusive trade partner, catering specifically to leading interior designers and design-focused retailers. Notably, this strategic shift means that direct shopping and purchasing from the “Mitchell” brand will no longer be available to consumers.

Image source

Many client orders remained unmet due to Mitchell Gold Co.’s abrupt liquidation and subsequent insolvency. Because these clients had previously paid for their purchases, a complicated situation arose in which logistics companies had thousands of goods in their warehouses. At the same time, they awaited payment from the now-defunct business.

One of the logistics companies impacted by Mitchell Gold’s insolvency was Ryder Last Mile, which was left in charge of keeping more than 2,000 Mitchell Gold items that were initially meant for customer delivery in its warehouses. A solution was required due to the regulatory and logistical issues that resulted from these unfulfilled products. Customers who have already made payments are impacted by this circumstance, which also presents difficulties for logistics companies like Ryder.

Ryder and Mitchell Gold have come to an arrangement regarding the issue related to undelivered merchandise. The logistics provider’s strategy for handling the current Mitchell Gold product inventory is described in this agreement, which also guarantees a dedication to completing customer requests as accurately as feasible.

The Tale Of 2000 “Undelivered” Products

Many furniture businesses faced supply problems, stopping sales that people had already paid for. The main issue was Mitchell Gold’s delivery partner, Ryder. Ryder says it has the right over the Mitchell Gold goods in its warehouses. They want to be paid before they send anything out. According to some reports, Ryder estimates it is awaiting $200,000 in delivery costs for all the merchandise from Mitchell Gold Co. currently in its possession.

Ryder is billing Mitchell Gold Co. a daily fee of $4,140 for storage. This is happening while the furniture company is undergoing bankruptcy and insolvency. The storage fees have accumulated to past $80,000, as per the reports. Ryder also claims that the furniture company owes them $1 million. This debt is for past services such as delivery and storage. This big expense is causing a lot of worry for Mitchell Gold. Their finances are already shaky. Also, the rising storage costs are making things worse for them. They are finding it harder to deal with their problems during this period of uncertainty.

In a recent development within the bankruptcy proceedings, Ryder Last Mile Inc. has received court approval to initiate the shipment of stored items to customers. According to court documents, Ryder was storing over 2,000 distinct furniture items manufactured by MG+BW in various warehouses across the United States. However, customers who have fully paid for their undelivered items and have not sought a refund or credit are expected to cover additional storage and delivery charges incurred by the shipping firm.

As Ryder explained in court papers, customers typically pay shipping fees upfront to the retailers they purchase from, in this case, Mitchell Gold. Many purchases were made months before the bankruptcy filing, meaning Mitchell Gold had to pay Ryder for shipping services. However, the company filed for insolvency between receiving payment for shipping from customers and paying Ryder for delivery.

Despite already making payments to Mitchell Gold, customers must bill Ryder directly for delivery services. Ryder explicitly acknowledges this in its proposed letter, outlining the process for customers to reclaim the advance shipping fees paid to Mitchell Gold within the bankruptcy case.

The arrangement with Ryder and Mitchell Gold makes similar agreements with various third-party carriers possible. In addition to the $17 million kept at its own facilities, Mitchell Gold had around $6.5 million of goods stored at other 3PL sites, awaiting delivery to consumers.

This agreement may result in customers having to pay shipping charges twice. While they can file a claim for these charges with the bankruptcy court, the likelihood of receiving a refund is uncertain. The court may decide to refund some or all of these payments, but the outcome remains uncertain. Upon receiving the delivery, the purchased items become the customers’ property, exempt from any additional bankruptcy proceedings.

Amid Mitchell Gold’s challenges, other furniture companies are finding opportunities. Haynes Furniture, the owner of The Dump Luxe Furniture Outlets, a retail chain specializing in overstocks, home goods closeouts, and samples, has recently acquired unsold Mitchell Gold inventory.

The Dump’s six stores in Chicago, Atlanta, Houston, Dallas, Virginia, and Phoenix will feature Mitchell Gold rugs, furniture, lighting, home accents, and mattresses at discounts of up to 80% off the original MSRPs. It is anticipated that the merchandise will be available in “most” of the stores in time for Black Friday. Additionally, Haynes Furniture, based in Virginia, will include Mitchell Gold inventory in its Newport News, Richmond, and Virginia Beach stores.

About Mitchell Gold

Mitchell Gold & Bob Williams, also known as The Mitchell Gold Co., became famous in the furniture world. They focused on quality and clever creation. This brand made many different types of home furniture that were attractive and popular.

The company’s drive for high standards shined in everything it made. Details and designs are what set them apart from others. They’ve earned a name globally for their extraordinary furniture. The furniture is not only beautiful but also strong enough to last.

Conclusion

The sudden shutdown and ensuing bankruptcy of Mitchell Gold posed big problems for both shoppers and employees. Shifting from Chapter 11 to Chapter 7, bankruptcy signaled a sweeping sell-off of assets to pay off debt, not just a restructuring effort. Surya’s purchase of Mitchell Gold’s property and factories shows a change in tactics, as this move restricts customers’ direct access to the Mitchell brand.

The unsolved problem of products not yet delivered, involving Ryder and Mitchell Gold, created legal and delivery messes. Ryder agreed to handle the present stock and do their best to complete customer orders. But, the fix might mean extra charges for customers who have already handed over shipping payments to Mitchell Gold.

While Mitchell Gold grapples with issues, other furniture companies like Haynes Furniture spot chances. They’re scooping up unsold stock to sell at cut-rate prices. Mitchell Gold’s bankruptcy leaves a changed scene, affecting shoppers, delivery services, and rival firms.

Shift4 CEO Discusses Competitor Fees, Reports Q4 Results

Shift4, a prominent company in payments and commerce technology, is set to reveal its anticipated fourth-quarter earnings for the fiscal year 2023 on February 27, 2024. This announcement holds immense importance for the stakeholders of Shift4, who are eager to learn about the company’s performance in the quarter.

Renowned for its payment solutions, Shift4 demonstrates a commitment to business growth and customer satisfaction. The leadership team at Shift4 Payments Inc., an expanding payment processing firm based in Pennsylvania, has strategically positioned itself to overcome challenges posed by competitors looking to increase expenses for hotels and dining establishments. Through technologies like its POS platform, the company is dedicated to providing cutting-edge solutions that cater to industry demands.

Furthermore, according to Shift4 CEO, the company is actively pursuing expansion opportunities in Europe following its acquisition of Finaro (soon to be rebranded as Shift4) last year, an Israel-based processor. This strategic move reflects the company’s aspirations for growth and emphasizes its dedication to staying up to the evolving market trends. Recognizing the need to adapt swiftly to challenges, Shift4 prioritizes effectively serving its customers amidst changing market conditions.

Key Takeaways

Competitive Pricing Strategies and SkyTab’s Advantage: Shift4 CEO Jared Isaacman openly discusses competitor pricing strategies, particularly highlighting the controversial $0.99 fee imposed by rivals on orders exceeding $10. Isaacman emphasizes the negative impact such fees have on restaurant owners and positions Shift4’s SkyTab as a customer-friendly alternative. By capitalizing on transparent pricing and offering innovative solutions tailored to specific industries, Shift4 reinforces its position as an industry leader.
Innovative Solutions and Success of SkyTab: Shift4’s commitment to developing innovative solutions is exemplified by the success of SkyTab, a payment processing system designed for restaurants and hotels. With over 6,500 SkyTab devices installed at Fontainebleau Resorts LLC in just the second quarter, Shift4’s emphasis on transparent pricing and customer-friendly alternatives has resonated well with merchants nationwide. The lower total cost of ownership aligns with the trust and transparency values restaurant owners value.
Strategic Acquisition of Finaro for European Expansion: Shift4’s acquisition of Finaro, a cross-border e-commerce payments provider and fully licensed bank with a substantial European footprint, marks a significant expansion. This strategic move broadens Shift4’s total addressable market and positions the company for growth in both geographic coverage and industry verticals. The company is enthusiastic about extending the success of SkyTab to restaurants across Europe.
Utilization of AI for Growth and Cost Efficiency: Shift4 demonstrates its commitment to leveraging technology for growth and efficiency, mainly through acquiring Finaro. AI automation is highlighted to boost work speed and performance while keeping the staff number steady. Despite letting go of 150 workers in the first quarter of 2023, Shift4’s use of AI aims to sustain its original staff count, showcasing a strategic approach to workforce management. The impressive financial results reported in the last quarter, including a 36% increase in E2E payment volume and a 34% hike in gross profit, reflect the effectiveness of these strategic initiatives.

Shift4 CEO Jared Isaaacman Discusses Competitor’s Prices All While Highlighting SkyTab

Shift4 CEO Discusses Competitor Fees, Reports Q4 Results

As the chief executive of Shift4, Jared Isaacman has never shied away from openly criticizing the tactics of competitors in the payment processing industry. During a last quarterly earnings call, Isaacman did not hold back in expressing his views on rival providers and their use of additional fees levied on restaurants.

In particular, he highlighted the controversial $0.99 fee. This $0.99 fee applies to all orders exceeding $10. When the order processing fee was initially introduced in June 2023, it stirred discontent within the hospitality community, particularly among Toast customers. Many expressed displeasure at Toast’s decision to impose charges directly on consumers rather than through their usual direct customer transactions. Isaacman, highlighting the matter, emphasized that Toast faced significant backlash from customers and merchants over this fee, eventually leading them to withdraw it. Jared Isaacman also mentioned that fees added by competing providers present opportunities for SkyTab.

Image source

He implied that charging extra fees for basic services like processing a food order was an unnecessary burden for restaurant owners who are already operating on tight margins. Rather than following the approach of their competitors by implementing hidden or unexpected fees, Shift4 has focused its efforts on developing innovative solutions tailored to specific industries.

One such solution is SkyTab, a payment processing system designed for restaurants and hotels. The system uses tablets that allow staff to input and manage customer orders digitally. SkyTab recently achieved significant success after being adopted by Fontainebleau Resorts LLC, with over 6,500 SkyTab devices installed across their properties in just the second quarter. By capitalizing on the mistakes made by rivals, Shift4 has continued to strengthen its position as an industry leader under Isaacman’s leadership. His approach has solidified the company’s reputation for prioritizing merchants over maximizing short-term profits through opaque fee structures.

Apart from being a partner with Fontainebleau Resorts LLC, their recently launched cloud-based restaurant POS system is experiencing significant success. Since its introduction in the US last fall, they have successfully installed over 23,000 systems (according to Q3 results), including in large-scale entertainment venues and stadiums. In the third quarter, they secured agreements to implement SkyTab in prominent locations like the Amway Center, the home of the Paycom Center, and the Orlando Magic, as well as at BetMGM sports book locations.

The recent promotional campaigns have resonated well with merchants nationwide. SkyTab’s appeal lies in its lower total cost of ownership, which strongly aligns with the values of trust and transparency valued by restaurant owners. The company is enthusiastic about the opportunity to expand SkyTab’s reach to restaurants across Europe. Anticipating a robust European market into 2024 moving forward, they look forward to extending SkyTab’s success in the international market.

Shift4’s Acquisition of Finaro and AI-Powered Growth

Shift4 successfully finalized its previously disclosed acquisition of Finaro in October 2023. Finaro, recognized as a cross-border e-commerce payments provider and a fully licensed bank with a substantial European footprint, has become a part of Shift4. This acquisition marks a notable expansion for Shift4, significantly broadening its market in terms of geographic coverage and industry verticals.

Meanwhile, Shift4 is cutting costs locally, applying AI automation to boost work. They aim to keep the staff number steady, even after letting go of 150 workers in the first quarter of 2023. Shift4’s team holds 36% of the company shares.

Isaacman noted that AI is employed to enhance work speed and performance. The company is putting in significant efforts to sustain its original staff count since the beginning of the year.

In the last quarter report, Shift4 reported an impressive $27.9 billion in E2E payment volume. That’s a 36% increase compared to the previous year. These are the payments Shift4 oversees directly, unlike the ones received via gateways. Their gross revenue reached $675.4 million, showing a 23% increase. The gross profit was $171 million, which reflects a 34% hike.

About Shift4

Shift4 Payments, Inc. delivers payment and software services across the US. They excel in handling various payment types through card processing, offering solutions for debit, credit, contactless cards, and even mobile wallets. Not only this, but they also handle Visa, Mastercard, Europay, QR Pay, and other alternative methods! They provide various services, such as a custom gateway for channels, merchant acquiring, mobile POS solutions, and software integrations. They even handle risk management, security, and reporting tools.

Shift4 Payments supports web-store design and management, shopping cart handling, hosting, and delivery integration. They provide payment devices, manage chargebacks, tokenize transactions, offer gift cards, and prevent fraud. They even provide VenueNext, a service for mobile ordering, self-service kiosks, countertop POS, and digital wallets for stadiums and venues.

Shift4 Shop has a robust eCommerce platform with useful tools for online business set-up. Shift4 Payments offers Lighthouse a tool for managing social media, customer engagement, scheduling, online reputation, product pricing, reporting, and analytics, which is all cloud-based. SkyTab POS is their POS workstation that is ready with software suites and integrated payment functionality. And SkyTab Mobile is a mobile payment solution! Plus, they help integrate marketplace technology into third-party apps.

Shift4 Payments, centered in Allentown, Pennsylvania, has a history dating back to 1999. They deliver more than just innovative solutions. They’re much more with services such as merchant underwriting, onboarding, activation, and training. They tackle risk management and provide continuous customer service. They care about software integrations and compliance management, too. And remember, they also offer thorough partner support and services.

Conclusion

Shift4 Payments Inc.’s recent developments showcase a strategic approach to industry challenges and a commitment to customer-centric solutions. Jared Isaacman’s candid critique of competitor fees and the success of SkyTab highlight the company’s dedication to transparency and innovative services, positioning it as a leader in the payment processing sector.

The acquisition of Finaro and integration of AI automation demonstrate a forward-looking expansion strategy, broadening market reach and enhancing operational efficiency. Shift4’s Q4 results underscore a remarkable financial performance, with significant increases in payment volume, gross revenue, and gross profit. As Shift4 navigates a dynamic market landscape, its focus on innovation, transparency, and strategic acquisitions positions the company for continued success in the evolving payments industry.

Cryptocurrency Payment Trends to Watch in 2024

Globally, business models are undergoing a significant transformation, and a similar transformation is happening with paper currencies too. Paper transactions are not attracting the kind of attraction they used to get. The emergence of digital currencies, especially the acceptance of cryptocurrency payments, signifies a pivotal development in the evolution of commerce. A revolution led by Bitcoin a mere decade ago has become a pivotal entity in finance, reshaping how businesses operate and compete.

As 2024 is upon us, cryptocurrency is making another shift after getting “wintered over” and is now ready to make a run for the bears in the market. As was previously predicted by many payment giants and financial experts in the industry, it can change how businesses handle money, which still holds true as we move ahead in 2024. More and more companies see cryptos as good for customers due to their growing use and trust after facing hesitation from the market.

There are many cryptocurrency payment trends that we are witnessing now, and that is what we will discuss today. By staying current with these trends, businesses can be at the top of their knowledge and stay ahead in the crypto field.

This move towards cryptos comes from more acceptance of non-traditional money systems. As buyers get used to using digital money to shop, businesses see the need to change or be left behind. Recent reports highlight that crypto payment gateways could see a growth of 17% CAGR by 2029 as the demand in the market for safe ways to accept and deal with crypto money rises.

Cryptocurrency Payment Trends – Key Takeaways

Persistent Adoption of Cryptocurrency as a Payment Option: The increasing use of cryptocurrency as a payment method is a response to the issue of chargebacks that merchants face. More and more businesses are opting for cryptocurrency transactions, particularly involving Bitcoin, due to the lack of chargeback risks. Known companies like Microsoft, BigCommerce, Hostinger, Starbucks, and Subway are actively embracing cryptocurrency transactions, signaling a shift in payment preferences.

Dominance of DeFi in the American Market: DeFi is gaining traction in the American market as a prominent model for cryptocurrency-based exchanges and financial services. It’s decentralized, and the nature of its focus on empowering individuals sets it apart. The DeFi market is expected to witness growth, with an estimated increase of 9.07% by 2028, reaching total earnings of $37.04 billion. The US stands out as a prominent player in the DeFi market, with projected earnings of $12.53 million in 2024.
Rising Popularity of Crypto Payment Gateways: The use of payment gateways is on the rise as they serve as digital currency payment processors that help diversify available payment options. As cryptocurrencies become widely accepted, these gateways address merchants’ concerns, contributing to their increasing popularity. The demand for methods to accept and handle cryptocurrency payments is increasing, with a projected 17% growth rate by 2029. Businesses and customers are showing interest in this trend.
StableCoin Poised to Grow in 2024: In 2024, Stablecoins are expected to see growth, offering an option in volatile markets. These coins provide stability against currencies or commodities, acting as a safeguard against inflation. Both individual and business investors are attracted to them for risk mitigation purposes. The Q3 of 2023 saw $5 trillion worth of stablecoin transactions boosted by clearer regulations, investors’ involvement, and advancements in blockchain technology. Collaborations with institutions and technological developments like PayPal’s introduction of its stablecoin (PYUSD).

1. Companies Are Persistent On Accepting Cryptocurrency As A Payment Option

Chargebacks are a headache for merchants, siphoning off revenue, jeopardizing accounts, and demanding significant time and effort for proper resolution. While e-commerce businesses are often eager to embrace tools or strategies to curb chargebacks, one option has met resistance: cryptocurrency. Cryptocurrency transactions, such as those involving Bitcoin, operate without the risk of chargebacks. These transactions utilize escrow services, holding funds until both parties confirm the transaction. Once completed, the transaction becomes irreversible.

This inherent characteristic aligns with Bitcoin’s original purpose—to function akin to virtual cash, ensuring permanent and challenging-to-trace transactions. The same holds true for newer stablecoins, which, by pegging their value to an existing currency like the US dollar, mitigate price fluctuations associated with cryptocurrency speculation. Cryptocurrency serves as a preventive measure against certain chargebacks by offering a payment method immune to such disputes. When customers opt for cryptocurrency over credit cards, any issues that arise must be resolved directly with the merchant.

While chargebacks aren’t the sole reason merchants accept cryptocurrencies, their substantial financial impact, costing businesses billions annually and on the rise, undoubtedly plays a significant role. Accepting cryptocurrency payments has evolved beyond mere novelty or proof-of-concept, evidenced by major corporations such as Microsoft, BigCommerce, Hostinger, Starbucks, and Subway adopting cryptocurrency transactions. This trend extends to numerous small businesses, signaling a broader shift in payment preferences.

Another recent example of companies being persistent in accepting crypto is Watches World, which is a front-runner in e-commerce selling, buying, and trading luxury watches.

Watches World’s CEO, Rudy Esposito, recently emphasized the pivotal role of sourcing exceptional timepieces in the company’s success. This commitment ensures their discerning customers have access to the most desirable and prestigious watch models. Esposito highlighted their dedication to innovation and exceptional service through the continued acceptance of cryptocurrency payments, aligning with the positive momentum in the crypto market in 2024.

2. DeFi Has The Highest Market In America

Decentralized finance (DeFi) is a developing framework for orchestrating and facilitating cryptocurrency-based exchanges, financial services, and transactions. At its core, DeFi operates on eliminating centralized authority, distinguishing itself from the conventional models of finance for fiat currency within the cryptocurrency markets. In centralized models, a central authority holds sway over transaction flows and often manages the custody of assets.

DeFi adopts a decentralized approach where authority is distributed, aiming to empower individuals with greater control. Transactions, including selling, buying, payments with cryptocurrency, and loans, free from the influence of a central authority, are identical to the P2P approach.

There’s some excellent growth expected in the next few years. The numbers suggest a yearly growth of about 9.07% by 2028. That means we could see the total money earned reach $37.04 billion. It’s all thanks to people liking and using DeFi solutions everywhere. In 2024 alone, the average cash a user could make in the DeFi market is up to $1,378. Compared with other countries, the US is ahead of everyone, with $12.53 million in 2024. America is a big player in the DeFi market.

3. Growing Popularity Of Crypto Payment Gateways

A cryptocurrency payment gateway functions as a digital currency payment processor, comparable to traditional payment processors and credit card-acquiring banks. These gateways empower businesses to accept digital payments and instantly receive fiat currency in return. As cryptocurrencies gain acceptance as a valid payment method by an increasing number of merchants, these companies play a crucial role in dispelling uncertainties or reservations that merchants may have about cryptocurrency, thereby expanding the range of payment options available.

The rising popularity of cryptocurrencies fuels the expansion of the crypto payment gateway, as we have mentioned early on (17% CAGR), the increasing number of businesses working with crypto payments, and the growing regulatory clarity surrounding digital currencies.

Companies offering cryptocurrency payment options can attract new customers and boost sales. Simultaneously, businesses providing crypto-based financial services like crypto lending and trading stand to benefit from the surging demand for these offerings. These factors contribute to the growth of the crypto payment gateway market, presenting various opportunities for businesses to capitalize on this evolving landscape. This is also because they expect clearer rules around cryptocurrencies, along with tech improvements like tokenization, smart contracts, cross-border payments, and NFT integration. These trends will keep fueling this booming market.

4. StableCoin Poised To Grow In 2024

Stablecoins are set to skyrocket in 2024. The main reason why most publications are talking about it is because they help individuals who don’t want to “gamble” in shaky markets. Both people and businesses today are trying to avoid risk by spreading their investments around. That’s where stablecoins step in. They stay steady against multiple currencies and goods. These factors make stablecoins a strong shield against inflation.

They protect money from steep up-and-down jumps in regular markets. What’s more, stablecoins aren’t just for individual investors. They’re also useful for big companies needing to square up accounts across borders. Thanks to stablecoins, transactions in different currencies are faster and safer. They make global finance smoother and less of a headache. So, it’s no wonder that stablecoins are tagged for huge growth.

By the third quarter of 2023, $5 trillion stablecoin transactions were made, showing a substantial rise. There were a few reasons for this rise, like more clear regulation, institutional investors, and new ways to use stablecoins. For most of the year, stablecoin transactions went up. People believed more in their steadiness and trustworthiness.

But the end of the third quarter brought some big news that made things take off. Partnerships with big financial firms, getting together with common payment platforms, plus progress in blockchain tech. This should make stablecoin transactions safer and more efficient. All this has made folks in the market more hopeful. They think stablecoins could become a standard way to move and keep wealth. An example of such is PayPal, which launched its own stablecoin – PayPal USD or PYUSD.

Conclusion

In 2024, cryptocurrency payments will be shaped by these key trends, and businesses must keep track of them. The ongoing use of cryptocurrencies, thanks to the inability for chargebacks, is crucial for sellers. Major players, such as Watches World, highlight this through their focus on crypto payments, following the upbeat trend in the crypto domain. DeFi’s rise in the US market shows a change in finance systems as it offers decentralized options and is growing at a fast rate. Analysts expect this growth to go on, with about 9.07% annual growth predicted by 2028, to a total of $37.04 billion.

The increased use of crypto payment portals plays a part in reducing doubt about digital currencies. These gateways, projected to grow by 17% annually by 2029, help businesses pull in new customers and tap into the growing need for crypto financial services. Stablecoins offer security and consistency in 2024, appealing to individuals and businesses searching for a safe investment. The $5 trillion transactions in stablecoins in 2023’s third quarter show increasing faith in their stability and efficiency. Links with finance firms and progress in blockchain tech all contribute to a hopeful future, setting stablecoins as a possible norm in wealth transfer.

By following these trends, businesses can remain on top in the ever-changing crypto world. They can adapt to the shifting needs of customers and tap into the chance offered by the crypto sea change.

Paulette Rowe Become CEO Of Stax Payments

In August 2023, Stax Payments took a notable step by naming Paulette Rowe, a British finance executive, as their new CEO. She’s now among the few Black women running a payments company. Stax Payments welcomes Paulette Rowe as their new CEO, as she brings tons of knowledge and skill. This sets Stax Payments on its path to becoming world-class in integrated payments. With rich experience, Rowe is ready to guide Stax Payments toward innovation and growth. She’s got a strategic mind and successful record that makes her perfect for building on what interim CEO John Kristel started. An accomplished executive in the industry, she’s ready to guide the company to keep winning and remain a payment tech leader.

Before joining Stax Payments, Rowe refined her expertise at Paysafe, a company based in London. During her time, she managed their integrated and online sales platforms. Known for her handling of financial issues and advocacy for innovative approaches, she has distinguished herself. With Rowe’s perspective and strategic insight, she is poised to lead Stax Payments toward expansion and prominence within the payments sector.

Key Takeaways

New CEO at Stax Payments, Paulette Rowe: In August 2023, Paulette Rowe, an expert in the payment sector, became the CEO of Stax Payments. This big move reinforces the company’s goal of being top-tier in unified payments. With her affluent record, including leading Paysafe’s integrated and online commerce unit, Rowe is the ideal leader for Stax Payments.
Rowe’s Distinct Career and Honors: Rowe joins Stax Payments with over 20 years of knowledge in payments, fintech, and banking. She’s performed high-ranking roles at notable organizations such as Meta, GE Capital, Barclays, and Paysafe, proving her skills. Named one of the most Influential Women in Payments, she is a steerage and is anticipated to evolve growth and operational plans within Stax’s software and payments range.
Stax Payments’ Standing and Expansion: Under Rowe’s guidance, Stax Payments aims to keep up its outstanding growth in the payments field. The firm, having processed nearly $30 billion in payments, provides services to about 30,000 businesses worldwide. Having a valuation of over $1 billion and significant investments, Stax strengthens its standing through smart purchases, like Stax Bill, CardX, and Payment Depot.
Inclusion and Diversity Thrive at Stax: Paulette Rowe’s management underscores inclusion and diversity at Stax Payments. Looking back on her initial career days, Rowe illustrates the importance of staying true to oneself and one’s principles. As the CEO, she manages a diverse team and promotes a culture that acknowledges the worth of different backgrounds and perspectives. This commitment to diversity is key in constructing an inclusive environment within the company.

Paulette Rowe Takes The Helm At Stax

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Paulette Rowe, a seasoned payments executive, has been appointed as the new CEO of US fintech Stax Payments. She assumes the position from John Kristel, who has been serving as interim CEO since January. During the transition, Kristel will continue his role as an operating partner at Greater Sum Ventures, a control investor in Stax Payments.

Rowe, recognized as a prominent figure in the financial sector, brings a wealth of experience to her new role. Prior to joining Stax Payments, she served as the CEO of Paysafe’s integrated and e-commerce solutions division. In February, she took on the role of an independent non-executive director at London-based paytech platform Global Processing Services (GPS). Rowe has held senior positions at notable institutions such as Meta, GE Capital, Barclays, etc.

With over two decades of experience spanning payments, fintech, and banking, Rowe is now entrusted with steering the growth and operations of Stax’s software and payments portfolio.

Paulette Rowe has also garnered multiple accolades, including recognition as one of the Most Influential Women in Payments. She will concentrate on steering growth and operational strategies within Stax’s software and payments portfolio in her new capacity. This portfolio aims to support merchants and SaaS platforms to flourish by eliminating transactional friction between these businesses and their customers.

Expressing her views in the press release in August last year, Rowe highlighted Stax’s remarkable inorganic and organic growth in recent years, establishing itself as a disruptive force and a leader in the payments sector. She is excited about the prospect of collaborating with the dynamic team at Stax to create innovative solutions that simplify and enhance integrated payments.

After conducting a thorough global search, Ross Croley, the CEO and founder of GSV, expressed satisfaction in welcoming Paulette to Stax. Recognized as an accomplished executive with extensive experience, Paulette comprehensively grasps the industry’s intricacies and can inspire teams toward more tremendous success. There is confidence that Stax will thrive under her leadership, and gratitude is extended to John for his guidance and dedication during this transition.

Since its inception, Stax has successfully processed approximately $30 billion in payments, as indicated in the release. The company’s payments technology is utilized by approximately 30,000 businesses globally, encompassing both large and small enterprises, along with software platforms conducting their payments through Stax’s platform.

With $245 million in investments, Stax achieved a valuation exceeding $1 billion in 2022. The company capitalizes on the robust interest among investors in recent years, especially in funding fintechs operating within the payments sector. Stax has strengthened its position through strategic acquisitions of industry peers, including Stax Bill, CardX, and Payment Depot.

Paulette Rowe’s Leadership Journey At Stax Payments

In the early stages of her career, Paulette Rowe, the CEO of Stax Payments, encountered a crucial learning experience that stemmed from receiving misguided advice. Post-graduation, Rowe initiated her engineering advisory business, Rowe & Petmezas, in collaboration with a business partner.

During a consultation with a business adviser, the suggestion was made to change the company name, citing that Petmezas sounded “too foreign.” To further exacerbate matters, the adviser recommended Rowe abstain from attending sales calls, asserting that prospective clients might not respond positively to a Black woman and would prefer to engage with her white, male business partner. Rejecting these inappropriate recommendations, Rowe promptly terminated the services of the misguided adviser.

Reflecting on this experience years later, Rowe learned the importance of not compromising her identity or beliefs. Presently, as the CEO of Stax, a position she assumed in August 2023, Rowe oversees a workforce of 318 employees, including an executive team of six women – a rarity in the fintech sector, as she notes.

In a more recent interview, she emphasized the integral role diversity plays in Stax’s success. At Stax, the belief is firmly rooted that excellence emerges from a variety of backgrounds, and embracing differences serves as a catalyst for innovation. The presence of diverse executives within the company is seen as a key factor in building a more inclusive culture across all levels of the organization.

About Stax

Stax Payments is a leading innovator in finance technology and one of the quickest-growing businesses in America. Highly recognized by top magazines like Fortune, Inc., and US News & World Report. They’re celebrated for their unique, straightforward payment tech. It has processed over $30 billion transactions already. Stax concentrates on supporting small firms, major companies, and even software platforms with their complete payment API. As a result, they’re seen as a top player in this field.

They give businesses and SaaS merchants useful tools to handle payment systems, examine data, and improve customer service using integrated solutions. Thus, Stax helps businesses work better and make wise, growth-driving decisions. Basically, Stax Payments provides businesses with the tools they need to succeed in today’s competitive business world through the influential power of payments.

Conclusion

Stax Payments made a critical move by appointing Paulette Rowe as CEO. With a career in finance and a successful stint at Paysafe, she brings a wealth of experience to the table. Rowe is now the helmsman, aiming to steer Stax towards fresh ideas and expansion. Her firm understanding of tackling challenging financial aspects and novel strategies will build a steady base for Stax’s future ventures.

John Kristel stepped aside smoothly as Paulette Rowe climbed the corporate ladder from temporary to permanent CEO. Paulette’s two decades-long experience and the honor of being one of the Most Influential Women in Payments make her an excellent fit for Stax Payments.

Stax’s remarkable feats, such as managing $30 billion in payments and surpassing a $1 billion valuation, show its robust market standing. Paulette Rowe’s leadership story is one of resilience against unhelpful advice. This showcases her dedication to staying true to herself and valuing diversity. With her, she brings these imperative qualities to Stax. In the face of changes in integrated payments, Paulette Rowe’s leadership is ready to lift Stax Payments to continuous success.

FedNow Service has 500 Plus Participating Institutions

The convenience that new fintech tools offer is an important factor for user compliance, and that is why consumers in the United States are actively supporting them. To cater to these preferences, innovative payment options like P2P payment apps and autopay have become popular. One such platform, FedNow, was introduced last year with the aim of providing better convenience, speed, and choice, and it has proven to be a notable addition.

As we begin 2024, six months after its launch, the FedNow Service is off to a start with 500 plus institutions actively participating as receivers or senders on the network. These institutions include a range of banks and credit unions headquartered in 45 states. The size of these institutions varies from $500 million to a staggering $3 trillion in assets.

Since its introduction in July with 35 participating institutions, the FedNow Service has witnessed wide adoption. The Federal Reserve Banks anticipate growth of the network throughout 2024 as they leverage their well-established connections with thousands of financial institutions across the country to ensure accessibility to the FedNow Service.

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Key Takeaways

Impressive Participation: The FedNow Service, celebrating six months since its launch, boasts an active engagement from 500 plus institutions, ranging from banks to credit unions. This marks a significant upswing from its initial 35 participating institutions, indicating a strong initial adoption and foretelling further growth throughout 2024.
Industry Endorsement: The involvement of a diverse array of financial institutions across 45 states, with varying sizes and assets, underscores the financial industry’s endorsement of FedNow. While major banks like Citigroup and Bank of America are yet to join, the support from large institutions like JPMorgan, US Bank, and Wells Fargo showcases the increasing appeal of this contemporary instant payments system.
Gradual Adoption Challenges: Despite the positive momentum, the adoption of FedNow has been gradual, with a considerable number of credit unions and banks still pending integration. Many existing participants are currently only receiving payments, emphasizing the ongoing efforts needed to encourage broader participation and configuration for payment initiation.
Versatile Use Cases: The FedNow Service demonstrates its versatility through various innovative use cases. Fintech firms, such as Plaid, utilize the platform to provide instantaneous payouts for a variety of financial activities, tackling shared issues such as shortening micro-deposit settlement times. Public projects that demonstrate the wider societal consequences and variety of uses of FedNow include the Treasury Department of the Commonwealth of Virginia’s successful execution of rapid payments to charitable groups.

FedNow Service On Its Seventh Month – 500 Plus Participating Institutions Drive Instant Payments Adoption

In a significant update, the FedNow Service, marking six months since its launch, has entered the new year with an impressive participation of 500 plus institutions actively engaged as senders or receivers on its network. Representing a diverse range of banks and credit unions spanning 45 states, these institutions exhibit varying sizes, ranging from under $500 million to over $3 trillion in assets.

Launched initially with 35 participating institutions in July, the FedNow Service has experienced notable adoption, indicating the anticipation of strong network growth throughout 2024. As the Federal Reserve Banks strive to enhance accessibility to the FedNow Service, the increasing involvement underscores the financial industry’s endorsement of this contemporary instant payments system. However, it’s worth noting that major banks like Citigroup, Bank of America, Capital One Financial, and PNC, all among the nation’s top 10 largest banks, have yet to join FedNow, as per the latest list of participants released by the Fed.

First vice president of the Federal Reserve Bank of Boston and FedNow program executive Ken Montgomery stated that the FedNow Service is still in its early phases of development. He expressed his happiness with the significant uptake that was observed in the first few months, which signaled the end of the launch phase and the start of regular operations. Montgomery praised the growing number of service providers, financial institutions, and other companies that are a part of the payment ecosystem for realizing and seizing the significant opportunities presented by this cutting-edge instant payment system.

Launched in July, FedNow pledged to expedite transactions for both consumers and companies. Presently exclusive to banks, the Federal Reserve and its FedNow team have been actively promoting participation through public communications and webinars. The aim is to encourage more banks to integrate into the system as the network’s appeal grows with an expanding base of financial institutions, resulting in increased reach.

Cassie Burica, a Fed spokesperson, highlighted that some non-participating banks were involved in FedNow’s prior pilot program, indicating a potential future joining. Burica also mentioned that the CEOs of two major banks, Citi and Bank of America, affirmed during a hearing on the Senate Banking Committee last month that their respective banks plan to join the system in the upcoming months.

Certainly, the largest bank in the United States, JPMorgan, quickly integrated with FedNow from the outset, and US Bank and Wells Fargo have also become part of the network, showcasing support from major institutions. However, the adoption of FedNow has been gradual.

With nearly 11,600 credit unions and banks nationwide, the majority of them are yet to come on board. Among those that have connected, many are solely receiving payments and have not yet configured their systems to initiate payments. While the introduction of FedNow is encouraging increased participation, the US still trails behind other countries in developing instant payment systems. Some of these nations, including Brazil and India, have made significant strides by mandating the use of real-time systems.

Here is the list of all the financial institution added until the date this article was published.

Organization Name	City	State
1st Bank Yuma	Yuma	Arizona
1st Source Bank	South Bend	Indiana
ACCESSbank	Omaha	Nebraska
Addition Financial Credit Union	Lake Mary	Florida
Advantage One Credit Union	Brownstown	Michigan
Adyen	San Francisco	California
Affinity Bank, National Association	Covington	Georgia
Alliance Bank	Cape Girardeau	Missouri
American National Bank	Omaha	Nebraska
Americana Community Bank	Sleepy Eye	Minnesota
Apple Federal Credit Union	Fairfax	Virginia
Arbor Bank	Nebraska City	Nebraska
Arcadian Bank	Albert Lea	Minnesota
Asian Bank	Philadelphia	Pennsylvania
Auburn Banking Company	Auburn	Kentucky
Auburn Savings Bank	Auburn	Maine
AVB Bank	Broken Arrow	Oklahoma
Avidia Bank	Hudson	Massachusetts
BancFirst	Oklahoma City	Oklahoma
Bangor Savings Bank	Bangor	Maine
Bank & Trust Company	Litchfield	Illinois
Bank Five Nine	Oconomowoc	Wisconsin
Bank Independent	Sheffield	Alabama
Bank Irvine	Irvine	California
Bank of Alma	Alma	Wisconsin
Bank of Belleville	Belleville	Illinois
Bank of Burlington	South Burlington	Vermont
Bank of Edmonson County	Brownsville	Kentucky
Bank of Estes Park	Estes Park	Colorado
Bank of Franklin County	Washington	Missouri
Bank of Hillsboro	Hillsboro	Illinois
Bank of Hindman	Hindman	Kentucky
Bank of Iberia	Iberia	Missouri
Bank of Jamestown	Jamestown	Kentucky
Bank of North Dakota	Bismarck	North Dakota
Bank of Odessa	Odessa	Missouri
Bank of Rantoul	Rantoul	Illinois
Bank of Tescott	Tescott	Kansas
Bank of the James	Lynchburg	Virginia
Bank of Weston	Weston	Missouri
Bank of York	York	South Carolina
BankCDA	Coeur d’Alene	Idaho
BankSouth	Greensboro	Georgia
BCBank	Philippi	West Virginia
Beacon Credit Union	Lynchburg	Virginia
Belmont Bank & Trust Company	Chicago	Illinois
BNY Mellon	New York	New York
Branson Bank	Branson	Missouri
Bridge Community Bank	Mechanicsville	Iowa
Bryant Bank	Birmingham	Alabama
BTC Bank	Bethany	Missouri
Buffalo Federal Bank	Buffalo	Wyoming
California Coast Credit Union	San Diego	California
California International Bank, N.A.	Westminster	California
CAMPUS USA Credit Union	Gainesville	Florida
Cape Cod 5	Hyannis	Massachusetts
Capitol Credit Union	Austin	Texas
Carter Bank & Trust	Martinsville	Virginia
Carver Federal Savings Bank	New York	New York
Casey State Bank	Casey	Illinois
CB&S Bank	Russellville	Alabama
CBBC Bank	Maryville	Tennessee
CBI Bank & Trust	Muscatine	Iowa
CBW Bank	Weir	Kansas
Central National Bank	Junction City	Kansas
Century Bank of Kentucky	Lawrenceburg	Kentucky
Chain Bridge Bank, N.A.	McLean	Virginia
Chesapeake Bank	Kilmarnock	Virginia
Citadel Federal Credit Union	Exton	Pennsylvania
Citizens Alliance Bank	Clara City	Minnesota
Citizens Bank	Mooresville	Indiana
Citizens Bank & Trust	Guntersville	Alabama
Citizens Bank of Edmond	Edmond	Oklahoma
Citizens Bank of Las Cruces	Las Cruces	New Mexico
Citizens Bank of West Virginia	Elkins	West Virginia
Citizens First Bank	Clinton	Iowa
Citizens Guaranty Bank	Irvine	Kentucky
Citizens National Bank	Bluffton	Ohio
Citizens National Bank	Sevierville	Tennessee
Citizens National Bank of Cheboygan	Cheboygan	Michigan
Citizens Savings Bank and Trust Company	Nashville	Tennessee
Citizens State Bank	New Castle	Indiana
Citizens State Bank	Roma	Texas
Citizens State Bank of La Crosse	Clayton	Wisconsin
City Bank	Lubbock	Texas
City National Bank	Metropolis	Illinois
City National Bank	Colorado City	Texas
City National Bank	Charleston	West Virginia
Claremont Savings Bank	Claremont	New Hampshire
CLB The Community Bank	Jonesville	Louisiana
Clearview Federal Credit Union	Moon Township	Pennsylvania
Clinton Bank	Clinton	Kentucky
CNB Bank	Carlsbad	New Mexico
CNB Bank & Trust, N.A.	Carlinville	Illinois
Coconino FCU	Flagstaff	Arizona
Colfax Banking Company	Colfax	Louisiana
Commencement Bank	Tacoma	Washington
Commerce Bank	Corinth	Mississippi
CommerceOne Bank	Birmingham	Alabama
Commercial Savings Bank	Carroll	Iowa
Commercial State Bank	Republican City	Nebraska
Commonwealth Credit Union	Frankfort	Kentucky
Community Bank of Mississippi	Forest	Mississippi
Community Bank of the Bay	Oakland	California
Community Bank of the South	Merritt Island	Florida
Community Financial Services Bank	Benton	Kentucky
Community First Bank	Menahga	Minnesota
Community First Bank	Boscobel	Wisconsin
Community First Bank of Indiana	Kokomo	Indiana
Community First Bank of the Heartland	Mount Vernon	Illinois
Community Spirit Bank	Red Bay	Alabama
Community Unity Bank	Birmingham	Michigan
Community Valley Bank	El Centro	California
Consumers Cooperative Credit Union	Gurnee	Illinois
Consumers National Bank	Minerva	Ohio
Conway Bank	Conway Springs	Kansas
Cornerstone National Bank & Trust Company	Palatine	Illinois
Corporate America Credit Union	Irondale	Alabama
Corporate One Federal Credit Union	Columbus	Ohio
Crane Credit Union	Odon	Indiana
Cross Keys Bank	St. Joseph	Louisiana
Cross River Bank	Teaneck	New Jersey
Crossroads Bank	Effingham	Illinois
CSE Federal Credit Union	Sulphur	Louisiana
Cumberland Security Bank	Eubank	Kentucky
Cypress Bank & Trust	Melbourne	Florida
Dart Bank	Mason	Michigan
DATCU	Denton	Texas
Dean Bank	Franklin	Massachusetts
Decatur County Bank	Decaturville	Tennessee
Dedicated Community Bank	Darlington	South Carolina
Denison State Bank	Holton	Kansas
Dolores State Bank	Dolores	Colorado
EasCorp	Burlington	Massachusetts
Elevations Credit Union	Boulder	Colorado
Empire State Bank	Newburgh	New York
Enterprise Bank	Allison Park	Pennsylvania
EntreBank	Bloomington	Minnesota
Evergreen National Bank	Evergreen	Colorado
Exchange Bank of Alabama	Attalla	Alabama
F&C Bank	Holden	Missouri
Fairfield National Bank	Fairfield	Illinois
Farmers & Merchants Bank	Boswell	Indiana
Farmers & Merchants Bank	Saint Clair	Missouri
Farmers & Merchants Bank of North Dakota	Tolna	North Dakota
Farmers & Merchants State Bank	Bushnell	Illlinois
Farmers Trust & Savings Bank	Magnolia	Arkansas
Farmers Bank & Trust Company	Marion	Kentucky
Farmers Bank & Trust Company	Princeton	Kentucky
Farmers National Bank	Lebanon	Kentucky
Farmers State Bank	Galva	Kansas
Farmers State Bank of Alto Pass	Harrisburg	Illinois
Farmers State Bank of Calhan	Calhan	Colorado
Farmers Trust & Savings Bank	Buffalo Center	Iowa
Farmers Trust & Savings Bank	Spencer	Iowa
FBT Bank	Fordyce	Arkansas
FCN Bank NA	Brookville	Indiana
FCNB Bank	Steelville	Missouri
FFB Bank	Fresno	California
First & Farmers National Bank, Inc.	Somerset	Kentucky
First American Bank & Trust	Athens	Georgia
First Bank	Clewiston	Florida
First Bank	Carmi	Illinois
First Bank	Weatherford	Texas
First Bethany Bank & Trust	Bethany	Oklahoma
First Business Bank	Madison	Wisconsin
First Citizens State Bank	Whitewater	Wisconsin
First Community Bank	Bluefield	Virginia
First Community Bank of the Heartland	Clinton	Kentucky
First Community Bank of Hillsboro	Hillsboro	Illinois
First Community Credit Union	Coquille	Oregon
First Federal Bank	Tuscaloosa	Alabama
First Federal Bank & Trust	Sheridan	Wyoming
First Fidelity Bank	Oklahoma City	Oklahoma
First Financial Bank	Abilene	Texas
First Internet Bank of Indiana	Indianapolis	Indiana
First Kentucky Bank	Mayfield	Kentucky
First National Bank	Damariscotta	Maine
First National Bank	Williamson	West Virgnia
First National Bank & Trust	Okmulgee	Oklahoma
First National Bank & Trust Co. of McAlester	McAlester	Oklahoma
First National Bank at St. James	St. James	Minnesota
First National Bank Colorado	Las Animas	Colorado
First National Bank Cooper	Cooper	Texas
First National Bank in Fredonia	Fredonia	Kansas
First National Bank North	Walker	Minnesota
First National Bank of Brooksville	Brooksville	Kentucky
First National Bank of Hereford	Hereford	Texas
First National Bank of Kentucky	Carrollton	Kentucky
First National Bank of Stanton	Stanton	Texas
First Pioneers FCU	Lafayette	Louisiana
First PREMIER Bank	Sioux Falls	South Dakota
First Seacoast Bank	Dover	New Hampshire
First Security State Bank	Cranfills Gap	Texas
First Security Trust and Savings Bank	Elmwood Park	Illinois
First Southern National Bank	Stanford	Kentucky
First Southern State Bank	Stevenson	Alabama
First State Bank	Buxton	North Dakota
First State Bank	Ben Wheeler	Texas
First State Bank	Gainesville	Texas
First State Bank	Graham	Texas
First State Bank	Spearman	Texas
First State Bank & Trust Company, Inc.	Caruthersville	Missouri
First State Bank Nebraska	Lincoln	Nebraska
First State Bank of Beecher City	Beecher City	Illinois
First State Bank of Dongola	Dongola	Illinois
First State Bank of Porter	Porter	Indiana
First State Bank of the Florida Keys	Key West	Florida
First State Bank of Wyoming	Wyoming	Minnesota
First Trust and Savings Bank	Wheatland	Iowa
First United Bank and Trust Company	Madisonville	Kentucky
First Western Bank & Trust	Minot	North Dakota
Fisher National Bank	Fisher	Illinois
Five Points Bank of Hastings	Hastings	Nebraska
Five Star Bank	Roseville	California
Five Star Credit Union	Dothan	Alabama
Flagship Bank	Oldsmar	Florida
Flatwater Bank	Gothenburg	Nebraska
Flint Community Bank	Albany	Georgia
FM Bank	Breaux Bridge	Louisiana
FNB Bank	Mayfield	Kentucky
FNB Bank	Romney	West Virginia
FNB Community Bank	Midwest City	Oklahoma
Fort Davis State Bank	Fort Davis	Texas
Fort Worth City Credit Union	Fort Worth	Texas
Fortifi Bank	Berlin	Wisconsin
Forward Bank	Marshfield	Wisconsin
Founders Bank	Washington	D.C.
Four Corners Community Bank	Farmington	New Mexico
Fourth Capital Bank	Nashville	Tennessee
Franklin Bank & Trust Company	Franklin	Kentucky
Franklin Savings Bank	Farmington	Maine
FRB Federal Credit Union	Washington	D.C.
Fredonia Valley Bank	Fredonia	Kentucky
Freedom Bank	Belington	West Virginia
Frontier Bank of Texas	Elgin	Texas
Georgia United Credit Union	Duluth	Georgia
Glenwood State Bank	Glenwood	Minnesota
Global Innovations Bank	Kiester	Minnesota
Goldenwest Credit Union	Ogden	Utah
Goodfield State Bank	Goodfield	Illinois
Goppert Financial Bank	Lathrop	Missouri
Goppert State Service Bank	Garnett	Kansas
Granite Bank	Cold Spring	Minnesota
Great Plains Federal Credit Union	Joplin	Missouri
Great Rivers Bank	Barry	Illinois
GreenState Credit Union	North Liberty	Iowa
Grundy Bank	Morris	Illinois
Gulf Coast Bank & Trust	New Orleans	Louisiana
Gulf Coast Business Bank	Fort Myers	Florida
HawaiiUSA Federal Credit Union	Honolulu	Hawaii
Hawthorn Bank	Jefferson City	Missouri
Heartland Bank	Whitehall	Ohio
Henderson State Bank	Henderson	Nebraska
Heritage Bank	Erlanger	Kentucky
Heritage Bank & Trust	Columbia	Tennessee
Heritage Bank, NA	Spicer	Minnesota
Heritage South Credit Union	Sylacauga	Alabama
High Plains Bank	Flagler	Colorado
Home Bank, SB	Martinsville	Indiana
Home Federal Savings & Loan	Grand Island	Nebraska
HomeBank	Palmyra	Missouri
Homebank Texas	Seagoville	Texas
Hometown Bank	Corbin	Kentucky
Hometown National Bank	La Salle	Illinois
Horizon Bank	Austin	Texas
INB	Springfield	Illinois
IncredibleBank	Wausau	Wisconsin
Indiana Members Credit Union	Indianapolis	Indiana
Indiana University Credit Union	Bloomington	Indiana
Industrial Credit Union	Bellingham	Washington
InFirst Bank	Indiana	Pennsylvania
InsBank	Nashville	Tennessee
INSOUTH Bank	Brownsville	Tennessee
Institution for Savings	Newburyport	Massachusetts
Integrity Bank & Trust	Monument	Colorado
InTouch Credit Union	Plano	Texas
INTRUST Bank National Association	Wichita	Kansas
Inwood National Bank	Dallas	Texas
Iowa State Bank	Clarksville	Iowa
Iroquois Federal	Watseka	Illinois
Jacksboro National Bank	Jacksboro	Texas
Jackson County Bank	McKee	Kentucky
Jarrettsville Federal Savings and Loan Association	Jarrettsville	Maryland
JD Bank	Jennings	Louisiana
Jones Bank	Seward	Nebraska
Jonestown Bank & Trust Co.	Cleona	Pennsylvania
JPMorgan Chase	New York	New York
Kimberly Clark Credit Union	Memphis	Tennessee
Kinecta Federal Credit Union	Manhattan Beach	California
Kish Bank	Belleville	Pennsylvania
La Salle State Bank	La Salle	Illinois
Lake Ridge Bank	Cross Plains	Wisconsin
Lakeview Bank	Lakeville	Minnesota
Lea County State Bank	Hobbs	New Mexico
Legence Bank	Eldorado	Illinois
LGE Community Credit Union	Atlanta	Georgia
LNB Community Bank	Lynnville	Indiana
Lone Star Capital Bank, N.A.	San Antonio	Texas
Lowry State Bank	Lowry	Minnesota
M&F Bank	Durham	North Carolina
MA Bank	Macon	Missouri
Main Bank	Albuquerque	New Mexico
Maine Community Bank	Biddeford	Maine
Malaga Bank	Palos Verdes Estates	California
Manasquan Bank	Wall Township	New Jersey
MAX Credit Union	Montgomery	Alabama
McCoy Federal Credit Union	Orlando	Florida
MCNB Bank and Trust Co.	Welch	West Virginia
Mediapolis Savings Bank	Mediapolis	Iowa
Members 1st Federal Credit Union	Enola	Pennsylvania
Mercantile Bank	Grand Rapids	Michigan
Merchants & Farmers Bank of Greene County	Eutaw	Alabama
Merchants Bank of Indiana	Carmel	Indiana
Meredith Village Savings Bank	Meredith	New Hampshire
Meriwest Credit Union	San Jose	California
Merrimack County Savings Bank	Concord	New Hampshire
Metamora State Bank	Metamora	Ohio
Metro Bank	Pell City	Alabama
MidAmerica National Bank	Canton	Illinois
Middlesex Savings Bank	Natick	Massachusetts
Mid-Southern Savings Bank, FSB	Salem	Indiana
Midwest National Bank	Sandoval	Illinois
MidWestOne Bank	Iowa City	Iowa
Minnesota National Bank	Sauk Centre	Minnesota
MNB Bank	McCook	Nebraska
Monticello Banking Company	Monticello	Kentucky
Moody National Bank	Galveston	Texas
Morgantown Bank & Trust Company Inc.	Morgantown	Kentucky
Mountain America Credit Union	West Jordan	Utah
Mountain Credit Union	Waynesville	North Carolina
Movement Bank	Danville	Virginia
MSU Federal Credit Union	East Lansing	Michigan
Mt. McKinley Bank	Fairbanks	Alaska
Murphy-Wall State Bank and Trust Company	Pinckneyville	Illinois
Mutual Savings Bank	Franklin	Indiana
My Community Credit Union	Midland	Texas
Neighborhood Credit Union	Dallas	Texas
Neighborhood National Bank	Mora	Minnesota
NESC Federal Credit Union	Methuen	Massachusetts
Nicolet National Bank	Green Bay	Wisconsin
North Alabama Bank	Hazel Green	Alabama
North American Banking Company	Roseville	Minnesota
North Central Bank	Hennepin	Illinois
North Shore Bank of Commerce	Duluth	Minnesota
North State Bank	Raleigh	North Carolina
Northeast Bank	Minneapolis	Minnesota
Northern Skies Federal Credit Union	Anchorage	Alaska
Northwest Federal Credit Union	Herndon	Virginia
Northfield Bank	Staten Island	New York
Northwestern Bank	Chippewa Falls	Wisconsin
Numerica Credit Union	Spokane Valley	Washington
Oak View National Bank	Warrenton	Virginia
Oklahoma’s Credit Union	Oklahoma City	Oklahoma
OMB Bank	Springfield	Missouri
One Florida Bank	Orlando	Florida
Partner Colorado Credit Union	Arvada	Colorado
Pavillion Bank	Richardson	Texas
Pegasus Bank	Dallas	Texas
People Driven Credit Union	Southfield	Michigan
People’s Bank	Medford	Oregon
Peoples Bank	Magnolia	Arkansas
Peoples Bank	Rock Valley	Iowa
Peoples Bank	Mendenhall	Mississippi
Peoples Bank	Clifton	Tennessee
Peoples Bank Mt. Washington	Mount Washington	Kentucky
Peoples Bank of East Tennessee	Madisonville	Tennessee
Peoples National Bank of Kewanee	Kewanee	Illinois
Peoples Savings Bank	Rhineland	Missouri
Peoples Trust & Savings Bank	Boonville	Indiana
Phenix-Girard Bank	Phenix City	Alabama
Pillar Bank	Baldwin	Wisconsin
Pima Federal Credit Union	Tucson	Arizona
Pine Bluff Cotton Belt FCU	Pine Bluff	Arkansas
Pinnacle Bank	Marshalltown	Iowa
Platinum Federal Credit Union	Duluth	Georgia
Pleasants County Bank	St. Marys	West Virginia
Poca Valley Bank	Walton	West Virginia
Points West Community Bank	Julesburg	Colorado
Portage Community Bank	Ravenna	Ohio
Preferred Bank	Rothville	Missouri
Premier Bank	Omaha	Nebraska
Princeville State Bank	Princeville	Illinois
Progressive National Bank	Mansfield	Louisiana
Range Bank	Marquette	Michigan
Redwood Credit Union	Santa Rosa	California
Republic Bank of Arizona	Phoenix	Arizona
River Bank & Trust	Prattville	Alabama
Riverfront Federal Credit Union	Wyomissing	Pennsylvania
Rivertrust FCU	Pearl	Mississippi
Robertson Banking Company	Demopolis	Alabama
RockPointBank	Chattanooga	Tennessee
Royal Banks of Missouri	University City	Missouri
Royal Credit Union	Eau Claire	Wisconsin
Rushville State Bank	Rushville	Illinois
Salem Five Bank	Salem	Massachusetts
Savings Bank of Walpole	Walpole	New Hampshire
Scenic Community Credit Union	Hixson	Tennessee
Scott State Bank	Bethany	Illinois
Seaport Federal Credit Union	Elizabeth	New Jersey
Security Bank	Springfield	Illinois
Security Bank of Pulaski County	St. Robert	Missouri
Security Federal Bank	Aiken	South Carolina
Security National Bank	Witt	Illinois
Sentry Bank	St. Joseph	Minnesota
Service Credit Union	Portsmouth	New Hampshire
Sherburne State Bank	Becker	Minnesota
Signature Bank of Arkansas	Fayetteville	Arkansas
Silver Lake Bank	Silver Lake	Kansas
Silver State Schools Credit Union	Las Vegas	Nevada
South Georgia Banking Company	Tifton	Georgia
South Louisiana Bank	Houma	Louisiana
Southern Bank of Tennessee	Mount Juliet	Tennessee
Southern Independent Bank	Opp	Alabama
Southern Michigan Bank & Trust	Coldwater	Michigan
SouthernTrustBank	Goreville	Illinois
Southwest Airlines Federal Credit Union	Dallas	Texas
SouthWest Bank	Odessa	Texas
Spectra Bank	Fort Worth	Texas
Star One Credit Union	Sunnyvale	California
State Bank Northwest	Spokane Valley	Washington
State Bank of Cherry	Cherry	Illinois
State Bank of Newburg	Newburg	Virginia
State Bank of Whittington	Whittington	Illinois
Stellar Bank	Houston	Texas
Stock Yards Bank & Trust	Louisville	Kentucky
Studio Bank	Nashville	Tennessee
SUMA Federal Credit Union	Yonkers	New York
Sunrise Banks	St. Paul	Minnesota
Susquehanna Community Bank	West Milton	Pennsylvania
T Bank	Dallas	Texas
Territorial Savings Bank	Honolulu	Hawaii
Texana Bank	Linden	Texas
Texas Bank and Trust Company	Longview	Texas
Texas First Bank	Texas City	Texas
Texas Heritage Bank	Boerne	Texas
Texas Heritage National Bank	Daingerfield	Texas
Texas National Bank	Sweetwater	Texas
Texas Republic Bank, N.A.	Frisco	Texas
TexasBank	Brownwood	Texas
The Bankers Bank	Oklahoma City	Oklahoma
The Callaway Bank	Fulton	Missouri
The Cecilian Bank	Cecilia	Kentucky
The Citizens Bank	Hickman	Kentucky
The Citizens Bank	Weston	West Virginia
The Claxton Bank	Claxton	Georgia
The Clay City Banking Company	Clay City	Illinois
The Colorado Bank & Trust Company	La Junta	Colorado
The Community Bank	Zanesville	Iowa
The Dime Bank	Honesdale	Pennsylvania
The Exchange Bank	Skiatook	Oklahoma
The Farmers State Bank and Trust Company	Jacksonville	Illinois
The First Bank & Trust Company of Murphysboro	Murphysboro	Illinois
The First National Bank of Bellevue	Bellevue	Ohio
TFNB	McGregor	Texas
The First National Bank of Mertzon	Mertzon	Texas
The First Trust and Savings Bank of Watseka	Watseka	Illinois
The Harvard State Bank	Harvard	Illinois
The HomeTown Bank of Alabama	Oneonta	Alabama
The Honesdale National Bank	Honesdale	Pennsylvania
The Iuka State Bank	Salem	Illinois
The State Bank	La Junta	Colorado
The Waterford Commercial & Savings Bank	Waterford	Ohio
Tompkins Community Bank	Ithaca	New York
Tower Community Bank	Jasper	Tennessee
Triad Bank	Frontenac	Missouri
Tri-County Bank & Trust	Roachdale	Indiana
Tru-Fi Credit Union	Macclenny	Florida
TruStone Financial	Plymouth	Minnesota
Tulare County Federal Credit Union	Tulare	California
U.S. Bank	Cincinnati	Ohio
U.S. Department of the Treasury’s Bureau of the Fiscal Service	Washington	D.C.
UBank	Jellico	Tennessee
UNCLE Credit Union	Livermore	California
Union State Bank	Clay Center	Kansas
United Bank of Iowa	Ida Grove	Iowa
United Bankers’ Bank	Bloomington	Minnesota
United Community Bank	Raceland	Louisiana
United Community Bank	Perham	Minnesota
United Cumberland Bank	Whitley City	Kentucky
United Farmers State Bank	Adams	Minnesota
United Federal Credit Union	St. Joseph	Michigan
United Nations Federal Credit Union	Long Island City	New York
University of Michigan Credit Union	Ann Arbor	Michigan
USALLIANCE Financial Federal Credit Union	Rye	New York
Utah First Federal Credit Union	Salt Lake City	Utah
Valor Bank	Edmond	Oklahoma
Vantage West Credit Union	Tucson	Arizona
Veridian Credit Union	Waterloo	Iowa
Viking Bank	Alexandria	Minnesota
Village Bank	Midlothian	Virginia
VISIONBank	Fargo	North Dakota
Visions Federal Credit Union	Endicott	New York
Washington State Bank	Effingham	Illinois
Waterfall Bank	Clearwater	Florida
Waterford Bank, N.A.	Toledo	Ohio
Wells Fargo Bank N.A.	San Francisco	California
Wells River Savings Bank	Wells River	Vermont
West Bank	West Des Moines	Iowa
West Plains Bank and Trust Company	West Plains	Missouri
West Shore Bank	Ludington	Michigan
West Union Bank	West Union	West Virginia
Western Bank	Artesia	New Mexico
Western Cooperative Credit Union	Williston	North Dakota
Westside State Bank	Halbur	Iowa
Whitesville State Bank	Whitesville	West Virginia
Williamstown Bank Inc.	Williamstown	West Virginia
Wilson & Muir Bank & Trust Company	Bardstown	Kentucky
Winter Park National Park	Winter Park	Florida
WNB Financial	Winona	Minnesota
Wolf River Community Bank	Hortonville	Wisconsin
Wyoming Bank and Trust	Cheyenne	Wyoming

The Future Outlook Looks Positive

Still, with the low initial response, FedNow has received positive feedback and strong uptake as it moves from the pilot phase to regular operations. Ken Montgomery, as mentioned earlier, says he’s happy with the initial results and thanks the industry stakeholders, service providers, and financial institutions for their support.

Throughout 2024, the Federal Reserve Banks plan to continue expanding its network by utilizing their vast network of contacts with hundreds of thousands of financial institutions around the country. This viewpoint supports the idea that FedNow is ideally positioned to handle the increasing demand for same-day payments.

The Numerous “Use Cases” Of FedNow

California-based fintech Plaid has made significant use of FedNow payment solutions in a creative way. Their application demonstrates the capacity to provide immediate payouts for a range of financial transactions, including microdeposits, insurance claims, payroll, investments, and loan disbursements. Plaid’s use of FedNow particularly solves a prevalent issue by shortening micro-deposit settlement times, offering a quick and effective fix.

The Treasury Department of the Commonwealth of Virginia demonstrates how the FedNow Service has an impact outside of the business sector. During a workplace giving campaign, the Treasury Department effectively executed rapid payments to charity organizations in cooperation with its human resources agency. This example demonstrates the FedNow Service’s varied use cases and wider societal ramifications, which extend to public activities.

Promising immediate payment use cases have been identified by a number of FedNow Service participants. These consist of expedited company payments, earned wage access, fast auto purchases, and A2A transfers for personal transactions. The variety of applications offered by FedNow Service highlights its adaptability to a broad range of financial situations and requirements.

About FedNow

FedNow, the latest payment rail initiated by the Federal Reserve, facilitates swiffer bank payments for financial institutions of any size, operating seamlessly 365 days a year. Officially launched on July 20, 2023, FedNow is purposefully designed to empower financial institutions of all scales throughout the United States to offer secure and efficient instant payment services.

Through the engagement of financial institutions in the FedNow Service, businesses and individuals can send and receive instant payments in real-time, uninterrupted, every day of the year. The service empowers financial institutions and their service providers to deliver innovative instant payment solutions to customers. Recipients, in turn, gain immediate access to funds, providing enhanced financial flexibility for time-sensitive payments. FedNow is a tool to streamline customer, consumer, and employee payments, expediting B2B transactions. For consumers, the rapidity of payments, exemplified by FedNow, becomes a valuable resource for transferring funds between accounts, settling with friends and family, paying bills, and more.

Conclusion

As the FedNow Service marks its six-month milestone, the notable engagement of 500 plus institutions signifies its growing influence in reshaping the landscape of instant payments in the United States. This diverse participation, spanning banks and credit unions of varying sizes across 45 states, showcases a promising start and anticipates substantial network growth in 2024.

While major banks like Citigroup and Bank of America are behind to join, the positive response from industry stakeholders, financial institutions, and service providers highlights the potential of FedNow in becoming a crucial component of the country’s payment ecosystem. The gradual adoption and exploration of innovative use cases indicate a positive trajectory for the future of instant payments in the US.

Fiserv Launches a Small Business Index

Fiserv, a company that provides technology for payments and financial services, has introduced the Fiserv Small Business Index. This unique tool evaluates the performance of businesses in the United States based on state and industry factors. Unlike other indexes, this index stands out because it directly uses data from around 2 million businesses in the US to provide faster and more comprehensive insights.

This index measures sales performance and customer traffic by analyzing point-of-sale transactions and assigns a value to consumer spending. According to the December 2023 index results, there has been an increase in business spending. Sectors such as Retail, Healthcare, and Food Services have shown growth. This Business Index has the potential to become a reference for understanding the current situation of small businesses.

Key Takeaways

Comprehensive Small Business Insights: Fiserv’s Small Business Index, leveraging consumer spending data from 2 million small businesses, provides a unique and comprehensive view of small business performance. It stands out by directly utilizing transaction data, offering faster and more detailed insights than traditional methods, and contributing to a timely understanding of economic trends.
Potential Standard Reference: The Small Business Index holds the potential to become a standard reference for assessing the state of small businesses. With monthly updates calibrated against 2019 data and covering 16 sectors and 34 sub-sectors, it offers a reliable and consistent measure of small business performance, even in industries dominated by larger enterprises.
December 2023 Highlights: The December 2023 index reveals a modest upswing in small business spending, particularly in sectors like Retail, Healthcare, and Food Services. Noteworthy improvements in consumer spending were observed in clothing, healthcare, and restaurant services, providing valuable signals about sector-specific trends.
User-Friendly Access: Fiserv’s commitment to empowering users is evident through the user-friendly interface of the Small Business Index, which is available on its website. Users can filter data by region, state, and business type, providing easy access for business owners, policymakers, lenders, analysts, economists, and investors to benchmark sales performance and make informed decisions based on timely insights.

Fiserv Introduces Small Business Index To Comprehensively Gauge Small Business Performance

Fiserv facilitates payments for over six million merchants globally and maintains a presence in nearly every ZIP code in the US. Leveraging this extensive reach, the company introduces the Small Business Index, aiming to benefit reporters, analysts, and, most popularly, small businesses.

This Small Business Index is an interactive tool meticulously crafted to provide swift and accessible access to comprehensive small business performance data. Drawing data from millions of small businesses situated in the US, it enables users to get a deeper, more comprehensive understanding of the industry, state, and national performance metrics. This updated monthly index sheds light on consumer spending patterns across 2 million small businesses in the States.

It’s a direct compilation of consumer spending data from various transactions, encompassing cash, checks, and card payments, both online and in physical stores. Comparing this strategy to sentiment-based indices or traditional surveys provides a more accurate and instantaneous picture of small company activity. This special Index, scheduled for release during the first week of the month, offers deeper insights faster than other measures, enabling users to react quickly to new trends.

As the backbone of the US economy, small businesses account for nearly half of the jobs within the nation and provide 44% of the GDP, according to Frank Bisignano, President, Chairman, and CEO of Fiserv. The organization provides timely, thorough, and useful information based on consumer spending behavior through the Index. This index functions as a trustworthy new metric, providing insightful indications regarding the state of small enterprises in the US.

The Smaller Business Index seeks to provide data and insights useful to investors, policymakers, lenders, analysts, economists, and business owners. Its goal is to provide quick insights into the trends of particular industries within the ecosystem of small businesses, allowing users to gauge sales performance, make wise choices, and adjust to the changing market environment every month.

Fiserv Introduces Small Business Index To Comprehensively Gauge Small Business Performance

Source: Fiserv – Consumer Spending February 2024

The index, which measures consumer expenditure numerically and includes a transaction index that tracks customer traffic, is calibrated using data from 2019. The NAICS System allows users to filter this data easily by state, region, and business type. The index, which calculates a monthly score for 16 industries and 34 subsectors, is expected to establish itself as a standard tool for evaluating the situation of small enterprises. Even in markets where big enterprises dominate, it provides a timely, accurate, and consistent assessment of small business performance.

December 2023 Insights: Small Business Spending Trends and Sectoral Highlights

In December last year, the index pointed towards a slight uptick in consumer spending at small businesses. The index reached 138, indicating a modest 0.6% month-on-month and 2.6% yearly increase in spending. Noteworthy improvements were observed in clothing, healthcare, and restaurant services.

Prasanna Dhore, Chief Data Officer at Fiserv, highlighted that the uptick in small business sales during December mirrored consumers’ priorities as the year concluded, with a focus on food and drink, healthcare, and retail. Notably, the most significant gains in small business expenditure were observed in clothing, restaurants, and other accessories.

December 2023 Insights: Small Business Spending Trends and Sectoral Highlights

Source: Fiserv – Retail spotlight

The Drinking Places and Food Services category showcased robust performance in December, registering a six-point surge from November to reach an index of 128. This reflects a 4.9% monthly and 3.1% annual growth in sales. Additionally, customer visits exhibited an approximate 2.0% increase in both MOM and YOY.

The national retail index held steady at 142, with a marginal 0.3% dip in sales from November but a positive 1.6% increase compared to the previous year. Notably, the Accessories, Clothing, Jewelry, and Shoes sub-sector witnessed a noteworthy 6.1% surge in sales from November and a 5% uptick from December of the preceding year.

For easy access and analysis, the index by Fiserv is available on the company’s website, offering users a user-friendly interface to explore the data.

About Fiserv

Fiserv, Inc. is a company specializing in financial services technology. It operates across four main segments: Financial, Corporate, Payments, and Other. In the Payments segment, the focus is on delivering e-bill presentment and payment services, mobile and internet banking services and software, A2A transfers, credit and debit card processing services, P2P payment services, and various other electronic payment services and software solutions.

The Financial segment offers financial institutions source capture and item processing services, account processing services, servicing products, loan origination, consulting, cash management services, and other products supporting diverse financial transactions. The Corporate and Other segment includes intercompany eliminations, amortization of acquisition-related intangible assets, unallocated corporate expenses, and activities not factored into segment performance evaluations, like gains on sales of businesses and associated transition services. The company is headquartered in Wisconsin, founded in 1984 by George D. Dalton and Leslie M. Muma.

Conclusion

Fiserv’s launch of the Small Business Index marks a significant stride in providing timely and comprehensive insights into the performance of small businesses in the United States. This monthly index, utilizing direct consumer spending data from millions of small businesses, offers a nuanced understanding of industry, state, and national metrics. The December 2023 index indicated a modest uptick in small business spending, particularly in retail, healthcare, and food services.

With a commitment to delivering actionable insights, Fiserv aims to empower lenders, business owners, economists, policymakers, investors, and analysts to face the unprecedented market overview. The Small Business Index stands poised to become a standard reference for assessing the state of small businesses, offering a reliable measure even in industries dominated by larger enterprises.

What You Need to Know About Automated Invoice Processing

Invoicing is critical to any business operation. But all of the manual work that goes into it can create a headache for your accounting team.

Enter automation, a process that’s helping countless businesses in various industries and sectors. Whether it’s digitizing paper documents or verifying invoices with prior documents, automating financial tasks can significantly help to streamline and optimize different processes.

Given that many companies are undergoing a transformation process, automation should be a key part of your strategy if you want to adapt to the demands of the modern business world. Just as enterprise transformation helps your company become more effective and productive – crucial in today’s competitive climate – automating your invoicing process will do the same.

Not sure how to get started? We’re here to help. In this article, you’ll find out what automated invoice processing entails, the tasks it relates to, and the key benefits for your team and business. Let’s dive in!

What is automated invoice processing?

Invoices are a hugely important part of a company’s financial operations and help ensure an accurate billing and payment process.

Traditionally, invoice processing has been done manually. Someone on the accounting team will receive an invoice (physical or digital) and match it to the right purchasing order (PO) before sending the invoice to the next touchpoint to be approved.

Depending on the invoice amount, this may require several rounds of approval. Once approval is granted, the invoice is registered in the books for payment.

Free to use image sourced from Pexels

Automated invoice processing entails using software to reduce or eliminate several of the manual tasks involved in this process.

With so much competition today, it’s always worth stepping back and considering what areas you need to improve upon in your business.

For instance, your company might have a stellar content marketing strategy, complete with informative blog posts and downloadable guides. But if you serve international clients and are directing everyone to the same website, it could hamper efforts to target different demographics.

As a result, you might choose to buy and register different domain names using a provider like Only Domains. This helps you target the right audience in the right location, perhaps using .fr, .ca, or .sg to reach clients in France, Canada, and Singapore, respectively.

While this may not be a process you can automate, there are numerous ones you can. So analyzing which areas of your financial and invoicing systems can be streamlined will give you more time to focus on these other tasks.

Why use automation?

Digitization is taking over today – and automation has become a crucial part of the business transformation process.

If you’re skeptical of this process, remember that this isn’t a trend. Technology and software has been used in the industry for a while, as seen in the rise of paperless payments and the fintech solutions.

The idea is often to make the payment experience easier for consumers. But it also helps to improve efficiency and productivity among accounting teams. Those same teams can gain equal benefits with automated invoice processing. The technology streamlines the workflow of invoice processing, automating steps such as:

Data extraction
Data entry
Invoice validation
Processing system that tracks payments
Invoice reviews and approval (according to preset rules)
Automatically paying supplier invoices

By using advanced technologies and algorithms, automated invoice processing allows for quicker and more accurate verification and a speedier payment process.

That said, not all automated invoice processing systems are created equal. Depending on your business needs, there are various features that you should look out for when choosing the right invoice processing system.

Global accounting software market graphic

Image Sourced from Verified Market Research

The best features of automated invoicing software

One of the main features you should look out for when considering which automated invoice processing system to use is artificial intelligence. AI is being increasingly used by businesses across various sectors and departments.

To take one example, many customer service teams use AI for call center solutions that automate menial tasks and allow customer service reps to focus on customers. In the same vein, AI helps automate menial tasks in the invoicing process, helping you increase productivity and efficiency.

Let’s explore other software features to look out for that help with automating invoices.

Multichannel invoice capture

This supports multiple vendors for vendors to send invoice data to, including PDF, electronic invoices, scanned invoices, paper copies, and XML formats.

Intuitive user interfaces

Easy-to-use software that requires little to no training is a must, as it greatly enhances the accessibility of invoice software.

KPI/SLA management

Having software that can track and manage key performance indicators and SLAs is highly beneficial. These insights allow you to track money flow and invoice status.

Integration

A software that integrates with other accounting systems will benefit your team by enhancing data flow.

Customisation

All businesses are different, with their own invoice routing processes. Customizable software lets you create the set-up that suits you best.

9 benefits of automated invoice processing

Whether it’s B2B payments or accounts payable, there are numerous benefits to automation. But let’s look at how it can improve your invoicing in particular.

1. Reduced manual entry

Automated invoice processing almost entirely eliminates the need for manual data entry. The software will scan invoices and data efficiently and accurately. When compared to the inevitable errors that can occur with manual entries, this improves the accuracy of data input and also saves time for your team.

2. Reliability

When everything is done manually, accountants and managers can often rush the invoice review and approval process to save time.

However, with automation, your teams will have access to all the information they need to authorize payments quickly and accurately. This greatly increases the reliability of the whole process.

3. Easy access to information

Automation digitizes and makes available all the necessary data your accounts team needs. By improving information flow and access to information, your team will be well equipped to handle discrepancies or issues as and when they arise.

Easy access to information with automated invoicing

Free to use image sourced from Pexels

4. Automated workflow

An automated workflow allows you to introduce rule-driven processes that send invoices through the proper steps.

For example, you may introduce a rule that establishes which invoices get sent to which person. Small costs, such as office supplies, will get sent to the appropriate department head. Meanwhile, the system will send high-cost invoices relating to, say, new office equipment to the CFO.

5. Early payment discounts

Some vendors offer so-called “early bird” discounts to customers who make payments ahead of time. Typically, this means paying the invoice within 10 days of its issuing.

Automated invoice processing strengthens and optimizes your invoice process practices, which makes it easier to get ahead of the game and pay invoices early. Enjoy that discount!

6. Reduced audit preparation

Finance and accounting departments must comply with both their company’s policies and industry regulations.

Automated invoice processing systems ensure that data and invoices are captured and stored in a system that is both secure and easy to access. Moreover, they ensure this data is compliant with accounting policies and regulations. This level of compliance and ease of access greatly reduces the amount of time and effort required when preparing for an audit.

7. Cost savings

Those early-bird discounts aren’t the only ways that automated invoice processing can save you a buck or two!

For example, digital invoices can introduce sizable cost savings by freeing up your accounts team from menial jobs. This allows them to focus on more productive tasks.

Free to use image sourced from Pexels

8. Reduced business risk

A good automated invoice processing system will provide custom access controls and digital data security. Not only does this help with audit compliance, it also greatly reduces the risk of documents going missing or being misplaced.

9. Improved vendor relationship

Ironing out your invoicing procedures makes the process simpler for vendors. This can be instrumental in strengthening vendor relationships and enhancing trust with your business.

For example, important information is never far from hand if your vendor needs to check invoice details. Some software includes a vendor self-service portal that allows them to quickly upload invoices for a speedy approval that removes the fuss of manual processes. Even better, payment alerts and notifications mean that you won’t ever miss payment deadlines.

Final words

Automation is becoming an increasingly important aspect of business transformation – and financial teams could stand to reap some of the biggest benefits.

Automating the invoice process can significantly benefit your accounts team by helping them to streamline and digitize parts of the invoicing workflow. Freed up from doing menial, manual tasks, they can then focus on more productive tasks, such as creating budgets or exploring cost-effective payment processing solutions.

There are strong cost-saving benefits associated with automated invoice processing, too. You may enjoy early-bird discounts for processing invoices early. But just the fact that your team is more productive can pay off in more ways than one.

So whether it’s part of your digital transformation strategy or you want to revitalize your invoicing process, leverage the power of automation and get ahead of the game.

Fiserv Pursues Special Purpose Bank Charter

Fiserv aims to broaden its scope in handling processing tasks for merchants in the fiercely competitive payments market of a cost-conscious economy. The bank technology provider has sought a merchant acquirer limited purpose bank charter in Georgia. This move would allow Fiserv to oversee the entire payment process, encompassing the authorization, settlement, and clearing of debit and credit card transactions. Typically, Fiserv collaborates with bank partners as part of its payment processing operations.

This strategic move is a response to recent shifts in the market landscape. With third-party financial institutions, which traditionally acted as sponsor banks providing access to card networks, increasingly redirecting their focus to other aspects of their business, Fiserv is adapting its approach. It’s essential to note that Fiserv intends to transform into something other than a conventional financial institution or regional bank. Instead, it plans to maintain partnerships with financial institutions looking for continued market involvement as acquiring sponsors.

Key Takeaways

Strategic Shift in Merchant Acquiring: Fiserv’s application for a Merchant Acquirer Limited Purpose Bank Charter in Georgia indicates a strategic shift in its approach to payment processing. By seeking direct access to card networks, Fiserv aims to broaden its capacity and gain greater control over the entire payment process, including authorization, settlement, and clearing of transactions.
Response to Market Dynamics: Fiserv’s move is a response to recent shifts in the market where third-party financial institutions, traditionally acting as sponsor banks, are redirecting their focus. The evolving landscape has prompted Fiserv to adapt its approach, emphasizing a move towards maintaining partnerships with financial institutions while seeking direct access for merchant acquirers.
Potential Industry Trend: Fiserv’s application signals a possible trend in the payments industry, advocating for increased direct access to payment card networks for merchant acquirers. If successful, it could pave the way for other companies, such as Priority Technology and Global Payments, and competitors like Square and Stripe, to follow suit and explore the particular purpose bank charter option in Georgia.
Fiserv’s Vertical Integration Strategy: Under the leadership of CEO Frank Bisignano, Fiserv is considering a comprehensive vertical integration strategy. The acquisition of First Data in 2019 aligns with this strategy aimed at enhancing efficiency and gaining control. However, finding suitable bank partners may pose a challenge as financial institutions are cautious about engaging in non-core activities amid thin margins in the merchant sector.

Fiserv’s Application For Bank Charter Signals Potential Shift In Direct Access for Merchant Acquirers

In Georgia, the Merchant Acquirer Limited Purpose Bank Charter (MALPB) is a distinctive charter enabling companies to provide merchant payment processing services independently without relying on a partner bank. Despite its existence for 12 years, companies have faced challenges in utilizing it, primarily because card networks have yet to permit direct participation. However, this scenario might shift soon, particularly with Fiserv recently applying for a bank charter.

Fiserv seeks to broaden its capacity for handling processing tasks on behalf of merchants in a competitive payments market within a cost-conscious economy. On 12th January this year, Fiserv made a significant announcement, revealing its application filing with the state of Georgia for a MALPB charter. This application marks a noteworthy development and serves as a positive indicator for those advocating increased direct access to payment card networks for merchant acquirers in the US.

The potential MALPB charter promises to enable a company to provide merchant payment processing services without the need for a sponsoring partner bank. This includes things like joining card networks, authorizing and approving retailers to accept network-branded cards, assisting with transaction clearing and settlement via a card network, and providing access to and funding participation in card networks for clients of the MALPB, affiliates, or clients of affiliates.

Fiserv's Application For Bank Charter Signals Potential Shift In Direct Access for Merchant Acquirers

Image source

Fiserv has sought a merchant acquirer limited-purpose bank charter in Georgia to manage merchant authorization, settlement, and clearing independently without a partner bank. This is a strategic action driven by the growing emphasis that third-party financial institutions place on other areas of their operations, following in the footsteps of sponsor banks that have long provided access to card networks.

Under CEO Frank Bisignano’s leadership, Fiserv is considering a more extensive vertical integration strategy. Analysts suggest that Fiserv focuses on enhancing efficiency and gaining control where it is feasible. In 2019, Fiserv acquired First Data, previously in a joint venture with Bank of America, which was terminated a few months post-acquisition. The challenge for Fiserv might be finding suitable bank partners, as the offering may bring little benefit to financial institutions.

Banks may hesitate to engage in non-core activities in the current economic climate, where controlling expenses is crucial. The merchant sector faces thin and diminishing margins, making scale a critical factor for competitiveness. The larger the scale a company attains and the more costs it can streamline, the greater its likelihood of staying competitive.

A spokesperson from Fiserv stressed that the recent action doesn’t imply Fiserv’s intention to transform into a complete bank. Fiserv has yet to make plans to evolve into a conventional financial institution or a regional bank. Additionally, Fiserv will persist in collaborating with financial institutions that prefer to stay engaged in the market as acquiring sponsors.

Rivals May Follow The Path!

Fiserv’s application for a particular purpose bank charter in Georgia has generated significant interest in this charter option, prompting expectations of more companies following suit in the coming months. If Fiserv successfully secures the charter and gains access to card networks, it might pave the way for other merchant acquirers eagerly observing the situation.

Potential candidates for the charter could be large merchant acquirers headquartered in the state, such as Priority Technology and Global Payments. Payment competitors like Square and Stripe are also anticipated to pursue the charter, potentially establishing a presence in Georgia to meet the necessary application requirements.

About Fiserv

Fiserv is a leading company providing cutting-edge payment and financial services technology solutions. Operating across three key segments—Financial Technology, Payments and Network, and Merchant Acceptance—the company offers diverse services. In the Merchant Acceptance segment, Fiserv provides POS merchant services, mobile payment solutions, digital commerce services, a cloud-based POS, fraud and security protection products, and a business management platform, among other options.

The Financial Technology segment equips financial institutions with tools for processing customer deposit and loan accounts, managing general ledgers and central information files, and supporting various financial transactions, including digital banking and risk management. The Payments and Network segment delivers non-card digital payment software and services, encompassing bill payment, account-to-account transfers, person-to-person payments, electronic billing, and security and fraud protection products.

Fiserv is a global company with over 13,000 clientele and 21,000 associates worldwide. Fiserv is well-known for its fintech services and creative solutions, and it is dedicated to helping clients achieve best-in-class outcomes. Fiserv has won awards for excellence in data analytics, risk management, online and mobile banking, payments, and core account processing. Fiserv is a company that takes pleasure in pushing the envelope in the financial services industry. Utilizing its extensive knowledge base and innovative solutions helps financial institutions, companies, and consumers move and manage money more quickly and easily.

Conclusion

Fiserv’s strategic move to pursue a Merchant Acquirer Limited Purpose Bank Charter in Georgia reflects its proactive response to evolving market dynamics. The application signifies Fiserv’s intent to gain greater control and efficiency in payment processing tasks, aligning with the changing landscape where sponsor banks are redirecting their focus. Under CEO Frank Bisignano’s leadership, this move suggests a potential vertical integration strategy to enhance operational capabilities.

While challenges may arise in finding suitable bank partners, the initiative signals a broader trend in the industry. The ripple effect could see other major players, such as Priority Technology, Global Payments, Square, and Stripe, exploring similar paths. Fiserv’s diversified services across Financial Technology, Payments and Networks, and Merchant Acceptance underscore its commitment to delivering innovative solutions in a competitive market.