VIDEO TRANSCRIPTION
Hey everybody. What’s up. It’s Justin live from B2B Vault: The Payment Technology Podcast with your host, Allen Kopelman. And we’ll be providing you with educational information about business payments, FinTech, decentralized finance, and the technology businesses use in today’s world. And in today’s podcast, we’ll be going over the payment trends for May 2022.
There’s a lot of stuff in the news — contactless payments, Buy now, pay later. I mean, the government, of course, the government is always sticking their hands in it, but yeah, here you go. All right. So today, you know, we will talk about payment trends. We have about seven or eight stories. One came hot off the press, but this one has been rolling around over in Congress for a while.
And the finance committee Voted on a bill HR 4395, the payments choice act of 2022, which is a bill designed to preserve the choice for consumers to use cash as legal tender all over America. We celebrate that by choosing the money Because we like cash payments. After all, we put ATMs out all over the place and, you know, banks give everybody a hard time with CA; you know, they’re giving everybody a hard time with cash. So it’s about time Congress acted because. You know, this whole cashless society, thing’s never going to happen.
And you can make sure that if you like cash house bill 4395 contact your person. Who’s your house of representatives. Go on their website, and send them a note. We want you to vote for HR 4395; as my dad would say, vote early and vote often. The next one that they were talking about.
This just came right off. The news keeps talking about this, the MORE act, and this is good. The marijuana opportunity re-investment and expungement act. Otherwise, the more act. Thirty voted YES on this thing. Like many times, they passed it in 2020, but the Senate won’t vote on it.
And it’s, you know, now, like now they’re making a bunch of excuses and then you know, now a few senators saying, they’re, they’re going to introduce a similar plan. I don’t understand why they can’t use the same plan. You already voted on it in 2020 or 2022. Just get the thing done already. And this way. I honestly think they just don’t know what to do with all the people who are still incarcerated or serving probation.
The people got out of jail on mine, right. In the states that have like fully recreational laws. Right. But there are still thousands of people in jail for like minor stuff. That one lady got out that the Kardashians lobbied for, and they got that lady out of jail, and she was like, you know, on a minor drug charge a few years ago.
You know, this needs to get done already, but you know. They need to act on legalizing, you know, coming up with legalizing marijuana, which they’ve been talking about, and legalizing the payments for marijuana so that businesses can use credit cards to get, take payments at marijuana stores, obviously, and come up with some national legislation on that.
Another thing they’re talking about, which is also related to the farm bill 2023, is increasing the amount of THC allowed to be sold. And that could also pave the way for some marijuana legalization, maybe for lower dosage marrow, uh, the medical stuff to be more like legalized. Got it. Cause it as a lower THC, but you know, if that’s what’s going on.
That’s what’s going on with Congress. So another story that was in the news, that’s kind of like, you know, it’s crazy because contactless payments, right. Apple pay and all that. And it’s been around for a few years. I mean, we started rolling out apple payback 2015. It was the beginning. We first started doing it.
The first round of contactless payments was R I F D chips, which proved to be not good because it was emitting a radio signal from the credit card or a fog device. And people figured out how to like carry around something and steal your credit card. And that’s why you see those wallets RIFD. Chip protection.
They made many of them, but they didn’t do anything because nobody has RIFD. card. Now, it’s like tap and pay. You got to be on top of the machine to work. And the same thing with apple pay; it’s NFC near field communication.
The phone is they’ll be literally on top of the credit card. So what’s going on, you know, a few years ago, when it came out in 2015, I remember we had one company. They dealt with many young people, so they did a ton of those transactions, but we didn’t see it increase and get bigger until the pandemic, and people didn’t want to touch anything, you know?
So that became more. Now MasterCard’s going a step further. Now I’m not down with all this, but because who knows, I’ve seen that movie face-off where the guy makes a new face, uh, Nicholas cage, you know, John Travolta, but the guy gets an operation, horrible movie. You know you got these 3d printers, right?
Someone could 3d print my face, put it on their face, and then make some payments everywhere. They’re talking about biometric payments by pain where the fingerprint and you’ve listened. I watched the movie. So whatever, they press a button, put a piece of tape on there, and copy the fingerprint.
Double O seven stuff. Right. So I mean, paying with the chip embedded in your hand. Good. This is not total recall. Uh, that’s I disagree with that. Come on. Like, we’re going to walk around with embedded chips and cyborgs. No, they’re going to scan you. Like, I don’t like that. Just put it. I want a bracelet.
Yeah, that would be cool. Like to have it at Disney, they give you this bracelet Bitcoin 2020. Right. Well, yeah, but it didn’t do anything. It was just identified. I’m just saying the technology is there, but at Disney, they have it. You can get the, and they give you the bracelet, and it opens up your hotel door.
Does everything charged with it and everything? No, that’s pretty cool, but someone could rip that off your arm. Ooh. Cause he could walk past with a reader and stand. They could scan it and they can put something up against it. I wouldn’t work. So, you know, but I’m not, I’m not for this, like walking around with a chip in my arm.
I do not have the answers. Swipe master card is testing it, and they’re getting. You know, patents on this kind of stuff. So who knows what’s going to happen? What’s new with the business, the business payments stuff, anything new with that? Yeah. Well, you know, the business of business payments is constantly in the news.
I saw a couple of articles this week, and they talked about it. Businesses that are not embracing electronic payments, like taking credit cards for B2B transactions, setting up payment portals, and having online ways to do ACH or an electronic invoice. They’re losing business because they’re not embracing technology and the customers, you know, want the same experience that they have.
For paying their bills at home anywhere, they want that for B2B. I mean, that makes sense. When I talk to B2B companies, they go, oh, it’s too complicated. There’s too much to do. It’s going to cost too much. Let’s say we have low-cost ways that you can implement a payment portal. You can implement click and pay.
You can implement—tax payments. You can implement all kinds of expenses. You’re going to speed up the quickness of getting paid. You’re going to speed up your time value of money. Cause you know, the quicker you get your money, even if you get a little less, like let’s say you, someone owes you $2,000.
If you take a credit card, let’s just say the highest 3%. It’s never that island. It’s two and a half, usually on a business-to-business payment, the average for the month, you know? So what? It costs you a few dollars to take that back. If the person has to pay you for 60 days, you don’t have the money. Right.
And then it always makes me laugh. It’s like, well, it doesn’t go into my bank account right away. What about the check-in snail mail that takes two weeks to get to you that you still got to drop off at the bank. Let it process at the bank. Ah, dude, there’s technology available. Use it. Yeah.
You’re losing money because I’ve heard people say, ” Oh, it’s one or two basis points. Every day that you don’t get paid. So if someone doesn’t pay you for 16, 30 days, you know, 30 days turns into 40 days or 60 days. Sixty days turn into 90 days, and 90 days turn into 120 days, typical for an invoice.
Right? You get an invoice on the first of the month, and the business doesn’t typically pay it until the end of the month. Right. But I’m saying if you took credit cards, they’d spend it right away or pay it when their bill passes so they can float it out for a long time. And then there’s just up to you.
You are strategically sending that invoice out every month. So then you know that you’re going to get paid, and also, it’s straightforward. And it’s also businesses that they do monthly billing, set people up with automated, monthly billing, and they liked that, and they like it. They don’t have to worry about it. You don’t have to go chasing these people down to collect your monthly subscription fee for whatever it is.
Even if you’re like, we have a guy that. They do accounting for small businesses, right? So they used to have to be so far behind. They would have half of their clients that didn’t pay them. And then, but they didn’t have to chase them down, and the people pay two, three months at a time. This way, they can pay as they go.
You know, it’s excellent, and crypto was in the news this weekend. You know, sending the news every day now, but it was in the news about payments that way. Right. So it was in the news about payments that like, Hey, it’s going to, you know, companies like us, we’re making it easy for people to pay with crypto using a QR code.
Okay. Super simple, super, super simple. And also the other thing that came out that was big in the news, you know, You know, there’s been a lot of negative stuff about the NFT market and the crypto market and going down, how far is it going to go and, and all of that, but at the same time, He saw a bit, there’s a big company, RCI.
They own a ton of nightclubs, right? And another company owned a couple of hotels. Another company that’s an event company, and they’re all selling NFTs that give you benefits. So if you buy the NFT from the nightclub, you get VIP entrance, you get. A special door to go out and treat me best discounts at the club and the same thing at the hotel, you know?
So the NFTs, I think that NFTs have, have a different way of being used for business. Versus, you know, the artist. And I also saw another story in the news, which was about how artists using NFTs are making more money than the people who just have their music on Spotify and Pandora. And so they’re making tons more money.
Right? I think that the NFT thing is just getting started. I do. And like I have been saying as far as entities, that if businesses. Businesses should be incorporating NFTs into their branding, their companies’ brand. Yeah. It has to give value through value. I don’t know if it doesn’t necessarily do or what does it get?
That’s the thing that’s for them to decide, though. I mean, just the business itself should have the NFT four. They should get the artwork. Right. I think you’ve got to come up with a program as far as what are you going to do with it? The incentive of purchasing, what’s the motivation, and the benefits to the buyer?
There’s a good business case for that because it’s just like buying a membership. So instead of selling a membership, you’re selling them in NFC. Yeah. Cause I think the NFT, like the craze of just turning your avatar or your like profile picture into an NFT, I think that’s passed, well, I’ve been doing, we’ve been doing that.
The avatar for you. Instead of your profile picture. That’s not cooler new to me. Right? I mean, so I mean, some of the artwork that they’re using for it is cool and dope, but as far as being related to the business side of things, I don’t think we’ve even seen the door crack open.
There are just a few companies then when it. That is, it has an excellent valid use for business. Mainly I think like nightclubs restaurants could use it, especially the higher-end restaurants like, oh, you know, you get a particular reservation, you don’t have to pay for valet or whatever, the benefits they are going to give that.
Right. Because you bought this NFV w what is it? Rutgers, Luger, steakhouse. Imagine if they were selling the NFT for, you know, whatever, like the VIP room upstairs. I mean, how hard is that to get into any exactly. That’s what I’m saying. That’s what I think we’re going to see in the super, really excellent opportunities in the future.
Yeah, I think it’s cool. And the other thing that says, Justin always tells me, he goes FinTech. He goes, I guess, since I started working here, I’ve begun hearing FinTech like a little bit, and now it’s a lot. Every company Basically wants to be a FinTech company. All you hear about is financial technology, FinTech, FinTech; all payment companies want to be called Fintech.
And also the other thing is everybody’s trying to figure out how to incorporate banking and now. The new term, open banking, and I think that tells me open banking. It’s part of life. As we talked about it and another problem is the Neo banks or banks, which are these banks that are like sub banks.
But they’re all just online banks, no physical banks. Got it. You know, and then there is an example, and then they’re using the services from another bank. Right. You know, like there’s evolve. It’s one of the most prominent examples of that. And then just another. So a bank that we do business with, I don’t want to say the name, but it’s out in public.
We could say Synovis; they’ve just bought a company, so they could create an online bank and then combine that up with merchant services so that now you can get your merchant services and a bank account all at the same time. God, I think we will see companies trying to incorporate what FinTech merchant services.
I am thinking altogether. Right. You know, all, all together. It’s going to be an all-together thing. And with open banking, you know, part of the story was that there are no standards for open banking in the United States. There are some standards for the neobanks, but not for this like open banking thing. The payment industry is at odds over whether the country should adopt a standard like those already implemented elsewhere in Europe or even a modified version.
But they’re going to need to do that because it’s a problem. You can’t just have those companies that are just like FinTech companies. I’ll give you an example, like betterment, right. You can go there, and they invest your money or Robin hood. Right. And then they want you to open a savings account with them.
Well, who is that FDI? See injured? Well, that’s what you got to check out. You should know. Just saying you got to check it out. Like these people are giving you an FDI-insured bank. Hmm. So that’s what you got to see. Or even at the same time that we talked about these crypto companies where you’re staking your crypto, and then they’re paying you 10% on state crypto.
And the other thing I was going to say is people need to watch the stable coins out there. Because that’s where there’s been a big drop there’s like I saw like there was a guy in Asia that lost billions of dollars losing money that they invested in, uh, and a stable coin because they didn’t read about the stable coin wasn’t tied to a currency.
It was tied to some Bitcoin and Ethereum algorithms. And when those coins went down, Thank you. Took a poop and went from, uh, it was a little over a dollar, and it went to like 0.0017, and there’s like two. And I think that somebody has to do something cause there are a lot of coins or tokens, whatever you want to call them.
And they have very similar names. And I don’t think that should be like Because you can make a mistake and buy the wrong car. I agree. Cause there’s Sheba has a, like a, it’s almost like a scam, uh, Sheba, you know? Yeah. There’s, there’s a coin. Well, they created a website, and it’s like, instead of Shiba Inu.
Right. You know, it’s one of those where I just, it, something straightforward is changed, and it looks identical. And I mean, I agree a hundred percent there shouldn’t be any, you could, you should not be able to your company, your coins shouldn’t have the first three or four letters of it. It wasn’t like dogecoin.
And then there’s another one that’s spelled almost like it. Yeah. It shouldn’t be allowed. And the other thing people need to be. Uh, those websites, and you need to be careful of all websites because there’s tons of fraud going on right now. That’s also another story. I didn’t even write it down. Well, you are connecting your wallet.
That is one of the main things that I’ve been trying to explain about your crypto wallet. Your crypto is a wallet because every app will give you the option to connect to your metal wallet, your Coinbase wallet, and even your apple pay. That’s what I’m trying to say. Careful. Connect your wallets right away, man.
That’s the website app. Don’t just hop in and think it’s all gravy train cars. And there was a guy that I saw he was doing. He had a YouTube video, and he was showing all these websites that he was making fun of one of them. Cause it was, he called it. Oh, Google a, because like that’s not Google.
He goes, look, they slid a word, and they slid a letter in there, and it was G O O G. I L E right, Google, and he’s like, yeah, people go on there, and when they click a button. They think they’re on Google. And then they end up on some other website, or somebody goes to the bank of America, and they spell it wrong.
And then next thing you know, you’re on some fake bank of America website. So that’s why you can be very, very careful. And this next story goes along with that real quick, though, your spot to start a business and buyer in your start, setting up your weapon. It’s always a brilliant idea to buy the name, like B2Bvault.com.
There are good ways of buying; put an S on the end. Yeah. So that way, you know, can set up redirects and not miss out in case of other hackers and other stuff. And also we want to. Shout out to our, uh, sponsors. Thank you again for everything you do for B2B vault, um, nationwide payment systems, NPS bank, NPS printer, the payment advisory board, and worldwide digital payments.
Thank you for everything that you do. Check them out; they are a great company. Always looking out to help small and medium-sized businesses get on track. Whether it’s for your printing needs with NPS printer. If you need some advisory help, check out the payment advisory boarding, try to steer you in the right direction, NPS bank for all your payment processing needs, and nationwide payment systems for your crypto processing needs.
If you’re looking to accept crypto as payments, as always, follow B2B Vault on social media at B2B Vault on TikTok, Twitter, Instagram, and YouTube. We’re everywhere. We’re everywhere. If we’re not there, we will get there, and you should be scared. Check out B2B vault.info. We check out the past episodes.
There’s a form for you to contact Allen if you have any questions or want to be a guest on the show. And we got a couple of guests in the woodworks, um, in the works, uh, we’re trying to schedule the days so that everything falls and falls in line for us, both for both parties involved, um, and also small businesses follow B2B vault and.
Use the hashtag small business, small bids, shout out and put your company’s name and we will shout you out on the podcast. You will get a shirt. You also get an excellent little sign. That’ll you know, you love it. It was going to be cool. Yeah. Watch out. We’re going to be putting out some videos and social media promoting that very soon.
Indeed. All right. So last two stories, are our passwords going away? This is crazy. It needs to be done. We need to be done with passwords. It’s ridiculous. I mean, I looked at my program, but two-factor authentication. They need to figure that out too. Well, no, they’re talking about Google, Microsoft, and Apple.
This month began a new push in their campaign for a passwordless standard. That’s aimed at improving digital Identity verification, including for payments. So they got to come up with something. I mean, listen, I had to go through this thing. Like I need to pay my taxes to the IRS. And they had this website ID dot M E yeah.
I’m familiar with them. Right. So I had to register on that, and then they asked a couple of questions and authenticated my identity, and then they also had to authenticate. They asked some random questions. They probably get it for business. Where did you live, question? And it was like that address from when you were like 12 years old and you can’t, all you remember is the name of the street.
Well, my good stuff. I liked that kind of stuff. Cause it makes you think. Right. So that’s good. And I was talking to another company the other day, and they were like, they’re working on a similar type of technology. So people could put that on their websites to cut down on fraud. And it could either be used in person, like let’s say, in a jewelry store for a huh.
Dollar transaction, or in a nightclub, you got somebody coming in there dropping 10, 20, 30 grand, right. And a nightclub or whatever, five grand. It’s a lot of money. And it makes them authenticate. Like there, it matches the credit card to the identity. The same thing, like ask a couple of questions, ask the person a call with questions.
Like they, they would put a tablet out, and you’d bring the tablet over. Hey. But you know, people like answering security questions to make a purchase. I’m all for that. I mean, we have a big purchase. Like going into a gas station, you’re putting gas in your car. I don’t know if that’s necessary, but if you’re going to pay, I don’t know, you’re paying.
Let’s say this, whatever this is is id. Me. They can have a little, like you have that authenticator app for Microsoft on your, like, I have that on my phone for some stuff you have to like go. No, no, but they could do the same thing. Right? You have an item on your sweater with the blue check. I think we should.
All humans should have Bluetooth. If you’re on Twitter, or Facebook, just like how to use to verify. Now, Elon Musk wants to pay less for Twitter because he found around 30% or something bots doing stuff. So, the actual user, I mean, Facebook blocked all bots. You can’t bot on Facebook.
I’m sure a few people know how to do it, but I don’t know. You can create fake accounts. You just have to fake it canceled. I’m saying like, and I’m talking about like the robot posting like there are people that robot use robots to post on Twitter. I don’t know how to do it. So the audience as well, there’s a lot of ways.
Yeah. But anyway, yeah, but I’m not talking about it. There should be a verification process for human beings on social media so that everyone has a blue check so that you know that you’re a verified person and that way you’re. Um, getting swindled, or that does it for dating. And then they’re trying to get the dating apps to like adopt their software.
It does the same thing. It verifies who you are. You’re real. You put it in your driver’s license. I laugh when people do a chart. I mean, they lose cause the guy has everything on the person. So there’s, they’re done, but I think it’s, you know, I guess passwords, I mean, I looked at my password program the other day.
There are like 3000 passwords. I mean, the website passwords are going away too. Cause it’s turned to more on the page. Before we log in, we will send you a text to your phone a lot, and they need to get rid of it. Like I have one way somehow they got to figure that out. And then the next thing I see.
Which was interesting to me, but you know, I always talk to businesses about this all the time. You know, doing business internationally talks about the global economy. Oh, well, your honor. You know, with credit cards, there is no global economy.
If I get a customer in there in Brazil and they buy something from me, they don’t pay their bill. And then I get a chargeback. There’s no fighting that you can’t do that. So if you want to do international business, you have to get an international merchant account.
So we established worldwide digital payments to help crypto companies and companies involved in that and merchants who want to do business on an international level. So let’s say you have a product like we’re doing a golf company now, and you want to sell your golf stuff to people in Ireland and England.
And maybe South America, right when to sell your golf stuff there, wants to buy it. So they need an international merchant account. So that they’re transacting in the local currency, it’s converted to us dollars, but the person is making their purchase and their currency. Right. And they’re paying the conversion fees.
And then if they try to do a chargeback, it’s going to be very difficult because it’s processed by like the local banks down there. And you know, the local banks in those countries. And then it’s all rolled up into the big process, right. And it was not expensive. It’s just a matter of implementing it correctly.
That’s how you just decided, oh, I will do business in these ten countries. And then they set you up to do business. Well, they set you up. They can set you up to do business in 50 different countries with 150 foreign currencies. It’s cool, and companies should look into that.
You know, if you’re doing a big amount of business, you want to take your business to a global level, or you want to say, oh yeah, I want to attack a certain model. Maybe it’s Europe, Canada, or South America; then you need one of these merchant accounts. So you can take these international payments.
Those people are going to feel more comfortable doing business with. Because now they’re making a payment in their local currency, and many of these countries have theirs. We discussed this on another podcast about the interchange and why it is because they use mostly these debit cards in these countries linked to their bank accounts, and they’re called all different kinds of names.
I was meeting with some guys today, and they were like, oh, we have this thing we want, we want to do in Colombia and Brazil and blah, blah, blah. I knew what they were talking about. Yeah, it’s called ath. It’s similar to ACH and debit, but every country calls it something different, but it’s the local payment method.
And that’s how people pay their, want to pay online using these local payment methods. So if your website is that on there, they’re going to be more apt to do business with you quicker. It’s safer for them. It’s safer for them and time-consuming. And they don’t have to worry about getting hit with a foreign exchange fee because if you take dollars, that bank will whack them. After all, their bank has to convert it to dollars.
Right? So they get whacked for that this way. It’s all done in their local currency. And then it’s figured out so that the exchange rate is figured into the transaction, and you don’t have to do anything. It makes it easier for the business, easier for you to expand. So if you need to enter the air and, and its payments are faster.
The other thing to do internationally is cryptocurrency because you can do large transactions. Somebody wants to send you money from another country. That’s the swift. It has to pass through a couple of different countries before it gets to the United States. It can take five to seven business days. A crypto transaction can take place in a couple of minutes, and in 48 hours or sooner, you have the money in your bank account.
Nice. So, you know, internet, you want to get, want to step it up? They were saying in the news article that they see international. Transactions of people in the United States doing business internationally increased in the last couple of years by 7%. So it’s going to keep going up. And for specific companies, if you have a product that works in other countries, you should be looking into this.
Absolutely. So that’s today’s payment trends. We talked about the marijuana bill. As a recap, we spoke of cash not going away. We said of passwords, making significant changes, cross border transactions. We talked about FinTech and open banking, biometrics, biometric payments, crypto in the news, and companies coming up with unique ways to use NFTs.
Business to business payments, which I have labeled the consumerization of payments. Okay. The consumerization of business payments it’s time, business, and government. You got to get on board with this and make it easier to get your money from. And then we talked about contact was payments going to a new level.
Going into a new level, and there’s even new stuff. I had a meeting today with a credible company out of Israel that has, is working on a way where you don’t even need a credit card machine to take payments. It was crazy. And you know, we’re getting more information, and now we’re going to demo it and see how it all works and plug it, you know?
Plug it in, but I’m just telling you payments is, are going to a whole new level. The pandemic accelerated contactless payments and EMV, and it’s accelerated and going to a new level, and businesses need to take advantage of it. You know, take advantage of all this news. I guarantee you there will be a lot that the pace that payments are moving at is very rapid, right?
We used to see things that would take five or ten years now taking a year or two. The FinTech companies are accelerating that because, you know, they’re like on the side of the bed; you know, they’re just developing technology. Then they leverage the existing merchant account. So they’re doing it ingeniously.
Not trying to do the merchant services with the technology; it’s on the side. So. Use your merchant account to get this new, cool technology. I like it. So that’s today’s payment trends. Follow us, and catch the episode payment trends every month. We always talk about exciting developments that are going on that will help businesses, uh, grow, support businesses, do more business, and all of that good stuff.
Thank you for listening to B2B Vault. Peace out, Carpe Diem. I hope everybody has a great day.
