How Modern Payment Innovations Are Simplifying Everyday Investments

Outside of saving, perhaps the most consistent financial goal for most of us is investing more. And why not? Investing offers an avenue through which we can create passive income and build wealth for the future. With the ever-present demand for more investment vehicles, modern technology has risen to the task.

Specifically, modern payment innovations have gone a long way to simplify many aspects of our lives, including investment. In this article, we’ll look at the various ways that investments are made easier through this myriad of payment innovations.

What are the Best Payment Innovation stocks to invest in right now?

Check our buy/sell tips

The Pain Points Of Investment Payment

Obviously, no matter what type of investment you’re taking on, you need to make payments. This could be buying stock, putting money into a real estate venture, locking away funds for a fixed deposit, and much more. Transferring this money has always been a pain point for investors because often, various financial institutions have to interact.

The bank or account where your savings or checking funds are kept is rarely the same one that you are investing in. This means that often you’re having to transfer significant amounts of money from one place to the other, and this can prove tedious in terms of filling forms, confirming payments with banks, waiting for payments to go through, and much more. At best, these pain points can be an annoyance and at worst, they can cause delays in making Investments that are often time-sensitive. But modern payment solutions are tackling this issue in a way that benefits everyone within the financial ecosystem.

Modern Payment Innovations

Thanks to the magic of things like open banking and digital assets, various financial institutions are more connected than ever, and payment transfers can be made with ease. And as this goes on, we’ll see the benefits in the Investment space.

Inbuilt Payment Methods

One of the first and most obvious benefits of modern payment methods for investments is that various platforms can have in-built payment methods that are linked to other institutions. Say you want to buy stock, for example. Rather than having to make a direct transfer from your main bank account to another one, you can typically link your bank account to a set platform or use any other payment method.
Think of how many of our favorite e-commerce sites already have our debit/credit cards and other payment methods linked. This means that payments can be done instantly. This is even used outside of the Investment space.

Online casinos, for example, typically rely on instant payments and in the past, this was a bit cumbersome. Now, there is a myriad of options across the globe. In Australia, for example, PayID is a go-to method that allows for instant deposits and withdrawals to these online casinos. It has become immensely popular among both casino operators and players for obvious reasons. As gambling expert Alex Hoffmann explains in a step by step guide, the use of PayID has been made as simple as possible to aid the process.

Automatic Transfers

Another way that modern payment methods have helped the everyday investment spaces is by simplifying them via automatic transfers. Many of us have an idea in mind of just how much we want to spend on investments, but don’t want to go through the process of making manual transfers. Now, many modern financial institutions are leveraging instant transfers to make the simpler.

Many banks allow you to automatically transfer a certain amount of money periodically into fixed deposit accounts, investment accounts, and much more. So, rather than going through the process of making a manual transfer, it can be done on your behalf. A recent feature that has grown popular with digital banks has been rainy day and roundup Investments. This sees transactions rounded up to the nearest dollar and the change automatically invested for consumers. This means that investments can be put on autopilot and thus, consumers are more likely to stay on track with them.

Instant Payment Reporting

Besides making it easier to automatically transfer into investment accounts, modern payment innovations also make tracking and reporting on Investments much easier. Because outside of putting money into an investment account, you also need to know when money comes out of it via dividends, interest payments, and so on. Modern payment solutions can be set up in the opposite direction in that dividends, interest, and the like can be instantly deposited into consumers’ savings or checking accounts. These automatic payments mean that there is even less for the average investor to worry about.

Greater Accessibility

Modern payment innovations have also simplified everyday investments by making them easier to access for the everyday person. In the past, most people would have had to hire a professional stockbroker or have a certain amount of money before they could invest in any vehicle. Now, modern payment innovations mean that various investment schemes are more widely accessible and have a lower barrier to entry.

For example, many modern banking apps allow consumers to transfer even pennies to interest-bearing accounts, as was noted in the automatic payment roundup in the previous section. Then you look at payment solutions like cryptocurrency, which tokenize investment in various schemes such as real estate or art, typically costing tens if not hundreds of thousands of dollars. As payment methods continue to evolve, accessibility will only become more democratized, leading to a more robust ecosystem.

Security Innovation

Whenever money and investments are involved, security is always at the forefront of consumer pain points, and modern payment innovations not just make payments easier but safer as well. consider things like two-factor authentication, facial recognition, device confirmation, and so on. Even innovations like AI are being used to flag fraudulent accounts, risky investments, and much more.

All of these work together to make sure that as payments are happening seamlessly, they are being authorized by the correct people and are being sent to the correct and reputable platforms.