Payment methods are changing, and it’s becoming clear that businesses of all kinds need to adjust if they’re to stay competitive. In B2C transactions, cash is becoming less common, and particularly in the aftermath of the COVID-19 outbreak, more people are favouring transactions that require minimal contact. In B2B dealings meanwhile, companies are embracing new ways to make large, occasionally cross-border payments efficient, secure, and affordable.
These are big changes that are occurring around the world. But it’s becoming clear that in the UK, Manchester could be among the areas leading the way.
Progress We’ve Already Seen
One of the reasons to look to Manchester for leadership in this area is that the city is already something of a hot spot for eCommerce businesses. A few years ago, Prolific North’s list of the top eCommerce companies in the North listed two Manchester businesses (N Brown and Rentalcars.com) in its top three. Four Manchester businesses were in the top 10, and 19 appeared on the list in total. This makes it clear that the city has already established itself at the forefront of the movement toward more digital transactions.
Another interesting point regarding the progress we’ve already seen in Manchester is that the city as a whole has embraced some particularly cutting edge payment methods. Case in point, we reported on the introduction of Sthaler’s Fingopay system to the Manchester area. This is a system that uses Hitachi VeinID scanning to allow users to link their credit cards to their “vein signatures,” and then complete in-person transactions using only their fingers. This is not a contactless payment method, but it is a quick and easy one, and one that still minimises contact significantly. It’s fast, secure, and safe, and its launch in Manchester could ultimately lead to changes around the UK.
Why Does Digital Commerce Matter?
We’ve spoken to why all of this matters to some extent from the perspective of consumers. People want safe, quick, secure transactions, and reputable digital options can provide just that. From the business side too though, digital commerce represents a clear path into the future.
On this topic, FIS Global sums up the benefits to enterprises fairly comprehensively. They explain that digital commerce solutions can lead to seamless B2B transactions; seamless, multichannel payments from consumers; and a more flexible payment network supporting different methods, currencies, and devices, as well as international activity. In short, a company that sets up a robust digital commerce system can make all transactions more convenient — from an in-person sale, to an overseas purchase, to a deal with another company.
What this means for businesses like the ones already thriving with eCommerce and digital payments in Manchester is that they simply have more potential. Their digital transformations can lead to competitive advantages with consumers, and in some cases will open doors to online and/or international business.
Manchester’s Potential to Lead
It’s clear that some Manchester businesses have gotten in on digital payment methods fairly early, as well as that those businesses stand to reap significant rewards for doing so. This much, however, could be said of plenty of cities around the UK and the rest of the world. What really gives Manchester the potential to lead in this space is the fact that these trends toward digital commerce happen to coincide with a relatively strong job market.
StartUs Magazine looked into UK business activity last year, and showed with fairly clear numbers that Manchester is among the more promising job markets. It may not feel that way to people in light of the economic crisis we’ve seen in 2020. But as of 2019, the city was coming off of a 62% increase in business activity since 2010. That’s as compared to 26% in Liverpool, 31% in Leeds, 39% in Birmingham, and 44% in London.
This indicates that as Manchester is increasingly exploring the benefits of modernised, digital payment methods, it is also seeing more new businesses than virtually any other UK city. This brings about all the more potential for a growing number of companies in the area to embrace digital payment progress.
Altogether, what we’re looking at is clear. Manchester has demonstrated an inclination to innovate. There are clear benefits for businesses doing so. And there have been new businesses emerging at a promising rate. For all of these reasons, we expect to look back in a number of years and see Manchester as a hub of digital payment development and adoption.
