Why eCommerce Businesses Should Use a Neobank

A growing trend in the eCommerce space is the reliance on Neobanks, which function as a digital entity capable of utilizing apps and online platforms to replace traditional physical branches. The rise of neobanks has been a huge draw for many eCommerce consumers, which in many ways has already helped disrupt traditional banking. What are Neobanks?

Neobanks are helpful constructs in today’s interconnected world. As of this year, nearly 250 neobanks are available for use globally, representing a strong growth in recent years. The primary difference between neobanks and traditional banking systems is the level of security and structure in which each business is run.

With eCommerce more important and common in consumers’ lives than ever before, access to secure transactions is paramount. This is where a neobank come in, harnessing advanced blockchain technology in the form of layered security protocols.

Unfortunately, the rise in hacks, security lapses, or data breaches is real for many consumers. This not only erodes trust in banking or eCommerce as a whole, but also in the cards or banking services used to make these purchases. Advantages of Neobanks in eCommerce

Neobanks represent a step in the right direction, emphasizing security through blockchain, artificial intelligence, and machine learning solutions. This is reflective in the allocation of resources at any neobank, which inherently possesses several advantages over traditional banks.

For example, neobanks do not need to dedicate precious resources or cash flow to physical location, upfront costs, rental fees, and office space. Rather, many neobanks have opted to bolster their security and transparency protocols in a bid to help streamline eCommerce and other functions.

Ultimately, the structure of neobanks is ideally suited to help disrupt traditional banks in the eCommerce space. Many of these apps have ramped up since 2020, providing vital services at an important time […]

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