Democratizing Payments - Making Low-Cost Payment Solutions Accessible

Fintech Confidential

In this episode of FinTech Confidential, hosts Tedd Huff and Colton Pond welcome the Co-Founder and Chief Product Officer of Tandym, David Anderson. Tandym is changing the way payments work by offering branded payment platforms for merchants. This approach helps reduce processing costs and boosts customer loyalty.

Traditional payment processing fees are high and hurt online brands. Tandym aims to fix this by offering branded payment products that are more efficient and cost-effective. For example, They can lower a brand’s payment processing costs by up to 80%. This allows brands to save money and use it to reward loyal customers, keeping them happy and coming back for more.

Tandym’s model combines payments and lending, shaped by extensive experience from working with lending and credit projects at Capital One. This unique model offers both credit and payment solutions in one platform. The closed-loop network minimizes traditional fees, making the payment process simpler and cheaper for businesses.

Modernizing tech stacks is crucial for launching unique products. At traditional institutions, it could take 12 months and a lot of money to launch a new product. In contrast, Tandym’s platform allows merchants to launch their payment programs quickly and efficiently, even on something as simple as airplane Wi-Fi. This speed and efficiency provide a significant advantage over traditional players in the financial services industry.

The future direction of the payments industry suggests that as consumer expectations evolve, technologies like merchant-branded payment solutions and pay-by-bank will become more common. This shift will make the payment landscape more inclusive and cost-effective for merchants and consumers alike.

Stay tuned for more episodes as Tedd Huff and Colton Pond continue to explore the world of fintech.

Key Highlights

Cutting Costs by 80%

Branded payment platforms help online brands cut their payment processing costs by up to 80%. This huge saving allows brands to invest more in rewarding their loyal customers, keeping them happy and encouraging repeat business.

Payment Programs Up in Minutes

Modern payment platforms can launch merchant payment programs in just 20 minutes. This quick setup is even possible on airplane Wi-Fi, making it incredibly efficient compared to traditional methods which can take months and require lots of money.

A Unique Approach to Payments and Lending

Some payment solutions now combine payment and lending services in one platform. This approach minimizes traditional fees and simplifies the payment process, making it cheaper for businesses.

Leveling the Playing Field

The future of payments is becoming more unbundled. This means smaller brands can enjoy the same low fees that big players like Amazon get, driving more competition and efficiency in the industry.

Compliance Matters in Credit

Extending credit responsibly is crucial. Companies must be cautious with regulatory compliance and ensure sound credit policies to balance growth and risk management, delivering a better experience for customers.

Efficiency and Speed in Tech Stacks

Modernizing tech stacks is essential. Advanced platforms allow for the quick and efficient launch of payment programs, providing a significant advantage over traditional financial services that take longer and cost more.

AI: Overrated or Useful?

AI tools are useful for tasks like writing code but are often considered overrated. Comparing AI to Excel, the discussion highlights its utility while questioning its potential to replace knowledge workers.

Solving Critical Problems

For new entrepreneurs, it’s important to identify and solve critical problems that could threaten the business. By focusing on these issues, teams can ensure their efforts are effective and move the company forward.

Overcoming Challenges with Partners

Extending credit as a fintech startup comes with challenges. Finding great technology partners is essential to overcome these challenges and support business growth, ensuring long-term success.

The Future of Consumer Expectations

As consumer expectations evolve, technologies like merchant-branded payment solutions and pay-by-bank will become more common. This shift will make payments more inclusive and cost-effective for both merchants and consumers.

Takeaways

1️⃣ Simplify Your Checkout Process

Reduce checkout button fatigue by streamlining payment options. Offering fewer, but more effective payment methods can enhance customer satisfaction and boost sales.

2️⃣ Offer Exclusive Rewards

Encourage customers to use your payment solutions by providing unique rewards. Exclusive offers and perks can increase adoption rates and customer loyalty.

3️⃣ Understand Your Payment Fees

Get clear on the fees associated with different payment methods. Knowing what you’re paying for can help you choose the most cost-effective options for your business.

4️⃣ Utilize Customer Data Securely

Make use of customer data to offer better payment experiences while ensuring data privacy and compliance. This can improve customer trust and engagement.

5️⃣ Enhance Payment Security

Implement advanced security measures to protect transactions. Secure payment processes build customer confidence and prevent fraud.

Links:

David Anderson

LinkedIn: https://www.linkedin.com/in/davidandersonlinkedin

Tandym

Website: https://www.bytandym.com/

LinkedIn: https://www.linkedin.com/company/bytandym

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Supporters

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About:

Guest

David Anderson: David Anderson is a financial services executive with 14+ years of experience across a diverse set of lending products (auto, card, installments) and in a range of disciplines (credit risk, marketing, new product development, general management). He loves solving complex problems of all types – hard-to-crack analytical puzzles, challenging exercises in organizational influence, designing a never-seen-before customer experience, and beyond.

Tandym: Tandym is a financial technology company transforming the private label credit card industry. As the first and only company to enable e-commerce businesses to quickly and easily offer their own next-generation private label credit cards, Tandym provides a comprehensive solution that drives business outcomes for merchants and the consumers they serve. The platform’s modern API allows for seamless merchant integration while delivering an innovative digital-first customer experience.

About the Hosts:

Tedd Huff is the Co-Founder of Voalyre and the President & Founder of Diamond D3, a consultancy renowned for its expertise in global payments and marketing. With over two decades of experience in FinTech, Huff has played a pivotal role in shaping the industry through his contributions to various startups and established companies, focusing on growth, innovation, process improvements, and enhancing user experience in the complexity of payments.

Colton Pond: Colton Pond is a seasoned marketing executive with a strong fintech and financial services background. In his latest role, Colton is the CMO for LoanPro's API-first lending platform, aiming to meet the increasing market demands. His track record includes a significant tenure at Truv, where he led the marketing team to achieve a 300% growth in year-over-year revenue. Colton has also held key marketing and sales positions at MX, Lucid, and HealthEquity, demonstrating his ability to drive success and innovation within the fintech sector.

Diamond D3, Media: A media creation, management, and production company delivering engaging content globally