How fintech like Novo has transformed e-commerce payment processing

The impact of financial technology (fintech) on modern-day business activities, especially e-commerce payment processing, is profound. Fintech companies like Novo.co have revolutionized e-commerce payment processes, and this article will discuss how they’ve been able to do it.

What is Novo?

Novo is a financial technology company that offers a free business checking account to small business owners. While Novo allows you to own a checking account and manage your business finances online, it doesn’t offer other banking services like savings accounts or business loans. And this is because Novo is a fintech company with a focus on digital banking for small businesses, not a bank.

Novo’s banking services are provided by Middlesex Federal Savings F.A. which is a member of the FDIC. Novo users have full deposit insurance up to $250,000 from Middlesex Federal Savings.

Small business owners in the US are benefiting massively from the services Novo offers. Unlike traditional banks, Novo users enjoy low-cost business banking services and integrations. In fact, Novo is a typical example of how fintech companies are revolutionizing e-commerce payment processing.   

How FinTech is Revolutionizing E-commerce Payment Processing

These are the different ways fintech is revolutionizing e-commerce payment processing:

1. You can Own a Checking Account in Minutes

With traditional banks that offer e-commerce payment services, it can take weeks to open a checking account. This isn’t ideal for small business owners who need to start receiving payments as soon as their store is up.

However, with fintech companies like Novo, you can open a checking account in less than ten minutes and have everything verified within a few hours. This gives you instant access to a checking account that serves your business needs. Novo offers a free checking account that has no minimum balance requirements and no maintenance fee of any sort.

2. Make Instant Global Payments

For small business owners, the challenges of making international payments for goods or services have been a major impediment to e-commerce. They want to be able to send money to their vendors or suppliers with ease. Though this has been possible in e-commerce payment processing, it’s not been as swift as the business owners would want.

This is a service Novo has greatly improved on, as its users can make payments and have their customers receive them anywhere in the world. And what’s more? With Novo, all transfers, mailed checks, and incoming wires are free. As a small business owner, this saves your business lots of minor charges that could compound to a sizable amount.

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3. End-to-end Payments Visibility

As a small business fintech, Novo allows users to easily track their transactions on the platform. Whether you’re using the Novo mobile or web app, you can check your transaction history anytime. The transaction amount, payer or payee, transaction ID, and even the debit card used would be visible to you. This helps you identify delays from payment processors, trace chargebacks and refunds, and even find out if you’re being overcharged in any transaction.

This end-to-end payments visibility is a massive fintech improvement, as it helps curb fraud in e-commerce and enhance customer relationships and trust amongst business partners.  

4. Real-time fraud prevention is guaranteed

Traditional payment methods like credit cards can easily be counterfeited, making it possible for a business to be defrauded. The growth of the e-commerce industry coincided with an increase in the frequency and type of internet fraud. Businesses get exposed once their payment information falls into the wrong hands.

However, fintech has made massive improvements in this by introducing real-time fraud prevention technology to businesses. Novo, for instance, offers its users a debit card built with the MasterCard EMV chip. This chip makes it impossible to counterfeit the card, thereby protecting Novo account holders from fraud.

Furthermore, Novo offers its users a virtual card designed with top digital safety measures. This card can be frozen the moment fraudulent activity is noticed, and it can be unfrozen once the coast seems clear.

As a small business owner in the US who knows how many promising small businesses have closed up due to fraud, this creative feature by Novo is a plus for you.  

5. API Integration Connecting Systems

Novo Business Banking

Novo Business Banking – Novo.co

Application programming interface (API) integration is a huge fintech development for small business owners. This feature allows businesses to automate and track payments on all digital channels. It also allows businesses to integrate and track customer interactions, shipping, logistics and transaction security with ease.

This is a feature Novo offers small businesses in its business tools integration feature.

6. Transparency

Fintech has brought transparency to e-commerce payment processing systems. In fact, this is one of the ways it has revolutionized digital payments. Unlike traditional payment systems where the bulk of transactions can leave room for shady transactions, the modern payment system records and documents information as they occur. And the information recorded can be accessed anytime.

Novo’s payment systems are clear from the get-go. There are no hidden charges, as Novo has its checking fee schedule available to even non-registered users.

7. Reduced FX Risks and Costs

Small business owners taking part in global businesses understand the fact that their transactions would be in varying currencies. This exposes their money to different forms of fluctuations due to exchange rates and results in receiving companies getting far less than the expected amount.

With fintech introducing instant global payments, businesses do not have to worry about this again. Novo’s integration with Wise and Stripe makes it easy for you as a small business owner to send and receive payments instantly without worrying about FX risks and costs.

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8. No Transaction Charges

This is another way fintech is revolutionizing e-commerce payment processing. Now, small businesses enjoy no charges in their transactions, making it possible for them to maximize profits and reduce costs.

As a small business owner, you can use the Novo platform without incurring any additional charges on your business transactions.

9. Integration with other small business tools

The ability to integrate other small business tools like Stripe, QuickBooks, Xero, etc. is another standout fintech feature that Novo offers its users. With accounting software like QuickBooks and Xero, you can manage your business finances with ease. You can make swift payments abroad with Stripe and Wise. And you don’t even need to carry your Novo card around to do this, as the platform’s integration with Google Pay and Apple Pay Wallet allows you to securely save such information.

Most of the tools integrated by Novo, one of the best small business fintech companies, are tools you already use in your transactions. This makes it convenient for you to access them when they’re needed.   

10. Make Mass Automated Payments

Being able to handle many payment requests at the same time is another way fintech is revolutionizing e-commerce payment processing. Unlike traditional payment systems, where payments are done one at a time, a fintech platform like Novo allows you to create and manage unlimited invoices at a time.

Conclusion

As a small business owner, there can be many challenges in your business, especially in the area of payment processing. However, with financial technology, you’re guaranteed to have seamless, cheaper, and faster business transactions. This is a modern technology that’s revolutionizing e-commerce in the world today.

The small business fintech platform, Novo, is a powerful tool in the hands of small business owners. Though it doesn’t allow cash deposits, which is typical of fintech companies, it ensures all charges incurred through money order deposits are refunded at the end of every month.

Fintech is changing how we do business now, and it’s great because transactions have been made simpler and cheaper. Today, you can stay ahead of your competitors by signing up on Novo to get a free business checking account.

Emenike Emmanuel
Emenike Emmanuel is a multiple award-winning blogger, CEO of Entrepreneur Business Blog, Chief Evangelist of Ebusinessroom Ventures, and the Lead Coach of an online community of over 12,000 business owners called, The Excellent Entrepreneurs' Network. He’s here to help you start, manage and grow a profitable and sustainable business using digital marketing strategies. Follow him on Facebook, Twitter, Instagram, LinkedIn & Pinterest with this handle, @emenikeng. Telegram group - t.me/yourfirst1000 | Email: [email protected]

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