Payments giants are profiting from the information left behind with every purchase, building detailed profiles on consumers and turning transaction data into a revenue source. 

While this data can be enticing for short-term marketing gains, it also comes with a trade-off: the erosion of customer trust.  In a landscape where data privacy concerns are only growing, aligning with a payment provider that prioritizes privacy—like Flexa—can strengthen customer loyalty and create sustainable value.

Targeted insights vs. customer confidence

Every swipe, tap, or digital payment does more than complete a transaction—it generates data that payment companies are increasingly using to fuel targeted advertising. With recent changes, such as PayPal’s new data-sharing policy or Visa’s recent consumer insights initiative, even specific details about customer shopping preferences can be shared with retailers for profit. While access to targeted insights may seem like a quick win for driving conversions, it also means exposing your customers’ personal information in ways that could ultimately backfire.

Flexa offers an alternative. In addition to providing a seamless way to accept digital assets, which are inherently more secure and private, Flexa’s privacy-first design ensures that customer data isn’t shared with third parties or stored for marketing purposes. Instead, Flexa uses a dynamic and random one-time code for every single payment to secure each transaction without capturing or selling personal information. 

Why this should be on your radar

While payment data may seem like a passive way to inform marketing strategy, data-driven marketing, and targeted ads have real impacts on customer trust. Customers are increasingly aware of and concerned about how their data is being used. They are seeing tailored ads that reflect their purchase history and browsing behavior, and while some may accept this as the price for convenience, others may feel uneasy knowing that their information is being shared and sold. In fact, a 2023 global survey showed that 55% of respondents prioritize privacy over functionality when it comes to their financial transactions.

For merchants, relying on data monetization from payment service providers (“PSPs”) can put you at odds with your customers’ expectations for privacy. This may create pressure to stay competitive, but risks alienating privacy-conscious customers. Instead of chasing short-term wins that depend on data-driven ads, consider the long-term gains from fostering customer trust by choosing secure, private payment solutions.

Data monetization continues to grow, but so does awareness

Data monetization has been a significant focus for traditional payment companies, and that isn’t slowing down. According to a report from Deloitte, the global market for data monetization reached $2.1 billion in 2020 and is anticipated to surge to $15.5 billion by the end of this decade. However, as more companies look to exploit data, consumers are becoming more informed and cautious about how their data is handled.

In fact, a 2023 report by KPMG found that 86% of Americans now view data privacy as a growing concern, with 40% expressing distrust toward companies' use of their personal data. This awareness is prompting consumers to favor brands that respect their privacy, and to seek out options that provide more control over their information. 

Flexa’s privacy-first approach

In a landscape where data privacy often takes a back seat, Flexa stands apart with its commitment to privacy and security. This approach isn’t just a feature—it’s foundational to how every transaction is handled and ensures you can rely on secure, straightforward payments without your customers' data being treated as a commodity. Flexa puts this into action by providing: 

• Privacy as standard: Flexa uses dynamic and random one-time codes for every single payment, keeping each transaction private without storing, analyzing, or selling customer data. Unlike other payment platforms that rely on data to drive revenue, Flexa simply doesn’t see data as a product.

• Built for control, not complexity: With Flexa, there’s no need to navigate privacy settings or complex opt-out procedures—Flexa’s model is private by default. Flexa only collects the minimum amount of customer data required by law, ensuring that your information is handled responsibly. Consumers and merchants alike can trust that their data isn’t being shared or repurposed behind the scenes.

• Secure, transparent transactions: Flexa empowers both consumers and businesses with a payment solution that respects privacy, fosters trust, and ensures every transaction is exempt from hidden data monetization.

Protecting privacy in a digital world

As digital payments become the norm, data privacy is a growing concern among consumers. By accepting digital assets, your business can offer a payment method that aligns with customers' privacy preferences—as cryptocurrency transactions in general require significantly less personal information than traditional methods. Flexa goes above and beyond, empowering merchants to offer private, secure transactions while supporting digital assets, giving customers a trusted way to shop without compromising their data.

If you’re interested in offering a private, secure option for digital asset acceptance, Flexa makes it easy. Join leading brands like Chipotle, Regal, and GameStop, who are already accepting digital assets through Flexa. Contact us today to learn how you can get started.