Will Contactless Payments Radically Transform FinTech
Quantzig reveals the focus areas and influencing factors of the new payment behavior and sheds light on how FinTech companies can leverage cutting-edge analytics solutions to bring out new contactless solutions to the market
LONDON: Quantzig, a leader in delivering scalable analytics solutions and data science services, today announced the completion of its recent article- Will Contactless Payments Shape The Future of Fintech?
The pandemic outbreak has undoubtedly had a huge impact on operations across industries, drastically transforming the way businesses function. To ensure business continuity in such a scenario might seem complicated but is also the need of the hour. Hence, FinTech companies are now focusing on devising action plans and risk mitigation strategies to tackle the catastrophe and its impact on key business functions. Given the current scenario, the focus of their actions will certainly be short term, but the actions they take now will help build a robust framework to ensure success. Positively, the crisis is also helping FinTech companies forge stronger bonds between customers and other entities in the contactless payments ecosystem.
“The COVID-19 pandemic has transformed all aspects of the financial services sector including banking and capital markets, wealth management, insurance and funds transfer, and contactless payments,” says a data evangelist at Quantzig.
Key focus areas in the contactless payments market
- Customer segmentation
With easy access to huge volumes of data, FinTech firms can create business-relevant customer segments to identify common characteristics of customers. These segments can then be mapped to the potential needs of customers to improve the effectiveness of targeted marketing campaigns. - Next best offer
At the customer-level, the customer persona and the historical transaction data can be integrated and analyzed using regression-based models to predict transaction frequency. Using these insights, contactless payments companies will be better positioned to notify customers of the best offers and plans. - Social media listening
The best practice is to apply text mining and natural language processing (NLP) to classify comments based on their sources- platform-based, service-based, or payment based. Once the comments are categorized, businesses can classify them into sub-groups for the easy identification of improvement areas.
