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Education

now and pay for them later, either through multiple fixed
installments over two to 12 months, or through a lump
sum payment that’s made within 30 to 60 days, using a net The BaaS movement involves
term structure. technology companies, media

The goals of BNPL solutions are to boost convenience platforms and other non-finance
and transparency, provide a better buying experience companies that, in a sense, become
for the customer, and help the seller generate more
revenues through converting new customers, boosting financial services companies because
average ticket values, increasing annual buyer spend, and they embed financial services into
doing business more efficiently with higher risk clients/
customers. the already existing daily
experiences of their customers.
Some BNPL players focus mainly on business-to-consumer
(B2C) transactions. These include PayPal, Affirm, Afterpay,
Klarna, PerPay, Quadpay, Sezzle, and even Spence, which
has a Cannabis BNPL product. Other BNPL players focus management, transaction monitoring, and other aspects
exclusively on business-to-business (B2B) transactions. of compliance, and bundling them within an as-a-service
Among them is TreviPay, which offers net 30-, 45-, and 60- offering.
day term programs for B2B companies.
Insurtech This helps businesses become more efficient on the
compliance end, saving them the time and resources
While we are all mainly involved in the payments sector, typically required to complete compliance work internally
we can’t ignore the emerging convergence of insurance in a segmented fashion.
and technology (insurtech), which can conveniently fit
within a customized industry sector package of integrated As fintechs continue to play a greater part in the payments
solutions. Insurtech is about disrupting the traditional, industry, we could see regtech solutions integrated into
slow insurance market. It is being driven by embedded industry-vertical solutions. This is just another way to
insurance, which means incorporating insurance policies focus more on the value of your total solution offering,
at the prospective policyholder's point of need and point rather than getting into a price war based on selling
of checkout using APIs and other forms of technological the same commoditized solution that everyone else
integration. is offering. A company to follow in this area is Acuant,
which provides a variety of regtech solutions for different
What’s interesting here is on the B2B side, fintech industry verticals.
researcher Simon Torrance (author of FightBack: How To Financial services from all
Win In The Digital Economy With Platforms, Ventures and
Entrepreneurs) projects that embedded insurance could Angela Strange from Andreessen Horowitz (www.a16z.
account for over $700 billion in gross written premiums com) said that as we go forward, "every company will
on property and casualty policies by 2030, which would become a financial services company." And the team at
be 25 percent of the global market. 11:FS (www.11fs.com) stated that fintech is only 1 percent
"finished." With the rapid rise of embedded finance, it's
Imagine if future integrated packages presented to various both a challenging and exciting time to be in payments.
verticals included not just the payments piece, but also
the insurance piece. It’ll be exciting to see how insurtech The challenging part is trying to keep up with all of the
development plays out this decade, but one company in changes, which means continued learning and making
particular to watch is NEXT Insurance, which recently sure you are positioned properly going forward. What’s
completed a partnership with Amazon Business Prime exciting here is that if you position yourself properly and
to allow business owners on the membership to quickly, continue to learn, there's a blue ocean out there in terms
easily and efficiently purchase business insurance policies of high compensation potential and career stability if you
online. bring the right integrated solutions to the right verticals.
Regtech
So again, we are in the payments sector, but I believe that, John Tucker is U.S. enterprise sales director for TreviPay (www.trevipay.
like insurtech, regulatory technology (regtech) could com) and has over 14 years of B2B sales experience in commercial
become part of a customized industry-sector package this finance. Tucker is an MBA graduate and holder of three bachelor's
decade. degrees in accounting, business management and journalism. To con-
nect with him, feel free to send him a connection invite via LinkedIn at
Regtech is all about taking various complex regulations, www.linkedin.com/in/johntucker99/.
screenings, fraud detection and prevention, identity
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