Tokenization and blockchain technology may be the future of data security and payment speed.
As technology continues to evolve along with buying experiences, one of the ongoing challenges for direct selling companies is providing faster and more secure payment processing solutions, both for the customer and the distributor.
In direct selling, companies and pay system solution providers continue to step up their game. Metrics Global works with roughly 30 direct selling companies, including global organizations, and has provided pay system solutions in the industry for more than ten years. In fact, the unique needs of the direct selling industry played a major role in creating and shaping the company’s services.
“There was an opportunity to provide solutions that are as unique as the individual direct selling businesses,” says Jason Sherwood, Metrics Global Executive Creative Director. “The sweet spot for Metrics Global is that personal, individual solution creation.”
“ I think blockchain technology will be important in terms of the speed and security by which payments take place.” —Jason Sherwood, Metrics Global Executive Creative Director
He says that no matter what business model a company uses (party plan, direct selling, networkmarketing, auto shipments, etc.), each company has unique needs and goals at different stages of growth. One common challenge in the industry is supporting a growing company that wants to expand internationally. Sherwood gives an example of a U.S.-based company with sellers in Japan that want to process in yen, but the company receiving money in dollars. “Those are some of the areas where we are able to provide some unique solutions,” he says.
The rise of CBD products has also presented some unique payment solutions challenges in different markets. Payment processing companies such as Metrics Global can create a specific solution by working with banks that may be unsure of the current legal landscape for those products. “The best solution doesn’t come in a pre-wrapped box,” Sherwood says.
Tokenization and blockchain technology may be the future of data security and payment speed. Some direct selling companies have already begun experimenting with nearly immediate commission payments. “That’s a place where blockchain can really make an impact, where you are processing almost instantaneously,” Sherwood says. “You’re able to actually have the money from one place to another place within seconds. I think blockchain technology will be important in terms of the speed and security by which payments take place.”
Sherwood foresees an increased focus on data protection, especially with compliance changes happening across the world. He says direct selling companies could be a specific target because of the nature of using an independent sales force. “In some cases, if you cannot provide your field with a secure and reliable solution, they could find their own solution, not knowing that they may be in breach of personal data infringement. Tokenization and blockchain technology provide a level of security that, hopefully, will eliminate some the challenges that direct selling companies and supporting vendors could potentially have.”