# Combatting economic uncertainty in 2023 with the payments sector Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-12-14 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: 2023 Payment Innovations: Combat Economic Uncertainty Meta Description: Discover how businesses can navigate economic challenges in 2023 through payment innovation and expertise to ensure stability and growth in turbulent times. URL: https://financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sectorhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-518070288-1737287306163-compressed.jpg) _![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/697-1737287306176-compressed.jpg)_ _By **Spencer Hanlon,** Global Head of Travel Payments and Head of Europe at Nium_ From supply issues to soaring utilities costs, global businesses are now facing a very different environment to the challenges presented by the pandemic just two years ago. For those business based in the UK, political uncertainty, including the continued fallout from Brexit, three Prime Ministers, on top of a looming recession is all adding smoke to an already cloudy horizon as we enter 2023. The cost of doing business is already rising – and we expect this to continue into 2023 as businesses enter a period of consolidation and cost-cutting to combat [rising inflation](https://www.ft.com/content/7ee4ebdf-ac70-4c9f-84e7-1341ade60bc0) and expenses. In tandem, the customer base will shrink as spending is [scaled back](https://www.financedigest.com/mifid-ii-why-you-should-not-scale-back-your-implementation-efforts.html "MIFID II: WHY YOU SHOULD NOT SCALE BACK YOUR IMPLEMENTATION EFFORTS"). Planning for this uncertainty is not easy. But as we step into the [next year](https://www.financedigest.com/novartis-to-spin-off-generics-business-sandoz-next-year.html "Novartis to spin off generics business Sandoz next year"), agility will be key. Those that are able to react and adapt to new challenges, and create a sustainable [economic model for growth](https://www.financedigest.com/addressing-the-credit-gap-to-unlock-economic-growth-in-africa.html "Addressing the credit gap to unlock economic growth in Africa") will be best equipped to survive. Crucially, taking advantage of the fintech and [payments industry to maximise](https://www.financedigest.com/5-ways-to-maximise-the-value-of-instant-payments.html "5 ways to maximise the value of instant payments") efficiency, cut-costs and navigate changing regulation will be highly beneficial in creating a competitive edge. Here’s my [predictions on how businesses will benefit from payment](https://www.financedigest.com/2021-predictions-realising-the-value-of-payments-transformation.html "2021 Predictions: Realising the Value of Payments Transformation") innovation and expertise in 2023 to combat economic uncertainty: 1. **Cost-cutting efforts will push business towards [payment solutions that facilitate speed of delivery](https://www.financedigest.com/delivery-hero-ramps-up-interest-payments-to-raise-1-billion-euro-convertible-bond.html "Delivery Hero ramps up interest payments to raise 1 billion euro convertible bond") and overall efficiency** Inflation is the silent killer of businesses and personal wealth. That is why heading into 2023, in this period of economic volatility, businesses will be forced to take a step [back and consider](https://www.financedigest.com/3-options-to-consider-when-you-owe-the-irs-back-taxes.html "3 Options to Consider When You Owe The IRS Back Taxes") how they combat fluctuating costs, while streamlining operations and responding to customer demand for reliability and speed of delivery. We’ve already seen the [Bank of England’s efforts to support businesses by raising interest rates](https://www.financedigest.com/bank-of-england-officials-split-over-future-path-for-rates.html "Bank of England officials split over future path for rates"), but next year, businesses will look towards the payments industry for more help. So much so, that businesses will increasingly adopt modern [payment tools to build](https://www.financedigest.com/can-i-please-speak-to-someone-why-building-relationships-is-still-crucial-in-digital-payments.html "“Can I please speak to someone?” Why building relationships is still crucial in digital payments") speed and efficiency into cross-border products and services – helping to manage liquidity with instant settlement, keep customers happy, unlock new revenue streams and offset inflationary pressures. By increasing the speed of cross-border products and services, businesses can ensure they reliably pay and get paid in real-time, every time. Fundamentally, those who can modernise their [processes successfully will be better equipped to survive this uncertain time with stable and reliable finances](https://www.financedigest.com/how-decentralized-finance-can-aid-in-the-acquisition-process.html "How Decentralized Finance can aid in the acquisition process"). 2. **Payment [provider innovation will allow businesses to accelerate their global](https://www.financedigest.com/route-genie-partners-withnorsk-global-to-provide-retailers-with-increased-international-carriage-choice.html "Route Genie Partners WithNorsk Global To Provide Retailers With Increased International Carriage Choice") ambitions** Many, if not all, businesses aspire to operate globally – taking advantage of talent, market appetite, and regulatory opportunities [around the world](https://www.financedigest.com/around-the-world-in-mobile-payments.html "Around the world in mobile payments"). However, [international expansion](https://www.financedigest.com/managing-trade-credit-and-insurance-in-the-context-of-international-commerce-expansion.html "Managing trade credit and insurance in the context of international commerce expansion ") is often part of the long-term roadmap – a goal that follows funding, momentum objectives, or customer acquisition. But today’s economic [challenges will see businesses accelerate these global ambitions in the relentless pursuit of growth](https://www.financedigest.com/retreating-up-the-risk-curve-is-no-solution-to-the-growth-challenge.html "Retreating up the risk curve is no solution to the growth challenge"). Opportunities to expand their customer base and drive new revenue streams become harder to ignore when combatting inflationary challenges and squeezed budgets. As businesses adopt this global mindset, they will increasingly lean on payment providers as a reliable and flexible [financial bridge into these new markets](https://www.financedigest.com/the-political-wildcard-what-is-trumps-us-presidential-nomination-doing-to-financial-markets.html "The political wildcard: What is Trump’s US presidential nomination doing to financial markets?"). With this support, businesses of all sizes will feel equal to larger enterprises, both in terms of resources and market opportunities. Unlike ever before, they will be able to leverage the same payment infrastructure to receive and send money in local currencies, at low [exchange rates](https://www.financedigest.com/currency-exchange-how-to-find-the-best-rates.html "Currency Exchange: How to Find the Best Rates") and in real-time. In turn, this will build trust with new markets and mitigate the effects of [economic uncertainty](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector-2.html "Combatting economic uncertainty in 2023 with the payments sector"). 3. **As regulatory challenges persist, [businesses will look for partners](https://www.financedigest.com/the-evolving-role-of-the-cfo-from-scorekeeper-to-business-partner.html "The Evolving Role of the CFO: From Scorekeeper to Business Partner") to remove the headache** In 2023, businesses will become increasingly attuned to the [complexity of changing global](https://www.financedigest.com/2017-global-payroll-complexity-index-reveals.html "2017 Global Payroll Complexity Index Reveals ") regulations. It’s here that payment providers will play a key role in [removing compliance as a hurdle to international growth](https://www.financedigest.com/fintechs-must-remove-security-and-compliance-friction-to-unlock-new-growth.html "Fintechs Must Remove Security and Compliance Friction to Unlock New Growth"), customer acquisition or revenue generation. Fundamentally, [leaders want to spend](https://www.financedigest.com/infosecurity-europe-agenda-spotlights-innovation-as-security-leaders-address-cybersecurity-spend-in-the-face-of-economic-headwinds.html "Infosecurity Europe agenda spotlights innovation as security leaders address cybersecurity spend in the face of economic headwinds") their time focused on business growth, product development and customer experience. And so, managing different regulatory environments can quickly become burdensome and costly. Many do not factor into their roadmap that each market may require a new license to move money or different compliance standards for onboarding customers and verifying identities. As being compliant and adhering to regulations is of utmost importance, it can ultimately draw attention away from more strategic endeavours that [lead to growth](https://www.financedigest.com/liverpool-shines-as-one-of-uks-leading-ladies-for-house-price-growth.html "Liverpool shines as one of UK’s leading ladies for house price growth"). This means that as budgets are squeezed in 2023, businesses will want to ensure time and resources are spent on what will help, not hinder, the [bottom line](https://www.financedigest.com/the-severe-impact-of-downtime-on-companies-bottom-lines.html "The severe impact of downtime on companies’ bottom lines"). The right payments partner will remove this headache, [managing global regulatory compliance](https://www.financedigest.com/fintech-and-compliance-managing-the-eternal-balancing-act.html "Fintech and compliance: Managing the eternal balancing act") needs and requirements in real-time, so crucial resources and budgets are available to be allocated to growth. **Final words** Navigating uncertainty [next year](https://www.financedigest.com/start-up-etioca-eyes-nasdaq-listing-next-year-as-it-unveils-electric-taxi.html "Start-up Etioca eyes Nasdaq listing next year as it unveils electric taxi") will require a considered approach. Businesses will [need to consolidate both to drive](https://www.financedigest.com/reasons-you-need-a-car-insurance-when-driving-in-thailand.html "Reasons You Need a Car Insurance When Driving in Thailand") efficiency gains but also to home in on the most productive parts of the business. For many, payments industry innovation and technology will be a [key differentiator in mitigating economic uncertainty](https://www.financedigest.com/battling-uncertainty-is-the-key-to-property-investment-success.html "Battling uncertainty is the key to property investment success"). The need to streamline the business, facilitate speed and reliability in payments and [remain regulatory compliant under new frameworks will all push businesses](https://www.financedigest.com/iran-open-for-business-but-caution-remains-the-watchword.html "Iran: ‘open for business’ – but caution remains the watchword") toward payment providers. It’ll be these [partnerships that will help businesses](https://www.financedigest.com/types-of-business-partnership.html "Types of business partnership") unlock growth opportunities and offset 2023’s cost pressures. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---