Change of Perception
By Nada AliRedha CEO and founder of Plim
In the fast-paced world of fintech, innovation and disruption are the name of the game. From mobile payments to blockchain technology, the financial industry has seen a rapid evolution over the past decade. In the pursuit of increased sales and valuation, companies are constantly looking for new and creative payment solutions that not only offer convenience and security to consumers, but also allow them to collect valuable data that can be used for commercial purposes.
One such innovative payment solution that has recently emerged is the concept of time as currency. While the idea of time banking and time currency has been around for many years, it is gaining popularity and awareness in the recent years due to our digital world and varying platforms, businesses and websites utilizing it.
Imagine being able to cash out your time and use it to pay for goods and services. This is the idea behind the new payment solution offered by a global store, which allows customers to use their travel time to the store as a payment method. The price tags on their products display both the price in dollars and the price in time. This innovative solution was created to increase footfall, since most of their stores are located on the outskirts of cities. By incentivizing consumers to make the trip and use that time to pay for their purchases, they are able to increase sales while also offering a unique and valuable payment option.
This concept of time as currency could also be applied to online platforms and marketplaces. Imagine being able to pay for goods using the time you spend browsing the site. This would not only increase footfall on all platforms, but also increase the time consumers spend on them, providing valuable data for commercial purposes. The gaming industry could also benefit from this payment solution, as it is a popular pastime that often involves significant amounts of time.
Another innovative payment option was adapted by a coffee store in 2019. Customers could buy coupons and redeem them for coffee at any time, allowing the store to hold onto a lot of cash and remain liquid while also expanding rapidly. This effectively turned the coffee brand into a bank, holding cash to be redeemed at a later date. The best part? This solution is not regulated in any way, making it an appealing option for businesses looking to maintain financial flexibility.
Buy Now Pay Later (BNPL) solutions are another example of innovative payment options that have gained popularity in recent years. The sentiment towards splitting payments has shifted from “should I” to “why not” in a very short time, with BNPL solutions now available in virtually every store and online checkout option. While these solutions offer convenience to consumers and can increase sales for businesses, they also come with risks such as increased debt and late payment fees.
Despite these risks, the fintech industry shows no signs of slowing down when it comes to innovation and disruption. As technology continues to advance and consumers’ preferences and behaviours evolve, new payment solutions will continue to emerge. Companies will need to stay ahead of the curve in order to remain competitive and relevant in the fast-paced world of fintech. The ability to adapt quickly to change and embrace new payment solutions will be critical to success in the years to come.
In conclusion, the concept of time as currency is an innovative and disruptive payment solution that is gaining popularity in the fintech industry. By allowing consumers to cash out their time and use it to pay for goods and services, businesses can increase sales while also collecting valuable data for commercial purposes. Other innovative payment solutions such as BNPL and coupon-based systems offer convenience and flexibility to consumers, but also come with risks that need to be carefully managed. The fintech industry is constantly evolving, and companies that can stay ahead of the curve by embracing new payment solutions will be the ones that thrive in the years to come.