Fintech companies are at the forefront of the 4th Industrial Revolution, as digitization continues transforming how we live and conduct business. A recent area of FinTech that has gained traction is the provision of Wallet-as-a-Service (WaaS).
WaaS defined (simply)
WaaS is a cloud-based fintech solution that enables businesses to offer their customers a digital wallet that stores, sends, and receives money.
The driving force of WaaS
One of the main drivers for the exponential growth of WaaS is the increasing demand by consumers and merchants for cashless payment options. With e-Commerce and mobile commerce continuing to rise, consumers are looking for convenient, efficient, effective, and secure ways to pay for goods and services. At the same time, WaaS offers businesses an opportunity to meet this demand by providing them [their customer] with a seamless digital, and digitalized, payment experience.
The WaaS adaption
As WaaS continues to be adapted and adopted with alacrity and volume, there is anticipated that there will be an increase in companies offering this service. This service will be particularly beneficial for small and medium-sized enterprises (SMEs) that may not have the necessary resources to build their digital payment solution, where WaaS enables these businesses the opportunity to offer [their] customers [their own] convenient, individualized payment options without the need for significant investment in infrastructure and technology.
Another WaaS trend
Another anticipated trend that WaaS proffers shortly is the integration of new technologies, such as blockchain technology, which is already utilized, providing secure and transparent transactions in digital wallets. As this technology matures, there be more widespread adoption of blockchain-based wallets.
In addition to blockchain, there will be more integration of artificial intelligence (AI) and machine learning (ML) in wallets. These technologies will enable digital wallets to offer personalized insights and recommendations based on their spending habits and transactional history, improving the customer experience and allowing businesses to understand their customers better, subsequently providing targeted marketing and promotional offers.
Furthermore, security is another area anticipated to see significant advancements and developments in WaaS. As cybercrime threats continue to increase, digital wallets must offer robust security measures to protect against data breaches and fraud. In the future, integrating biometric and multi-factor authentication will augment the security systems already used in WaaS.
The Youtap connection to WaaS
Youtap offers comprehensive White Label solutions that support and integrate e-wallets for cards, banks, digital money transactions, loyalty, and membership functionalities under one roof. Their White Label allows businesses to do without the high development costs of an e-wallet application and the maintenance of a secure payment system. They continue to advance and develop their technology to keep in front of their competitors while offering their customers’ customized goods and services.
In summation
The future of WaaS in fintech looks encouraging. As digital payments grow exponentially in availability and popularity, companies will continue to be on the lookout for convenient, efficient, effective, and secure ways to meet their customers’ wants and needs. WaaS offers innovative solutions to this challenge. With the integration of developing technologies and improved security measures, it will soon become an even more viable and vital tool. And in this, Youtap has the solution for any WaaS problem that you need solving.
