Payment Service Providers Must Take The Lead For Payments Innovation To Succeed
Innovation is essential to ensure payments keep pace with consumer demand and to enable merchants to find new ways to engage and serve customers. However, to ensure that innovative new payment methods are introduced and their benefits are realized by both consumers and businesses, payment decision-makers are reluctant to take the plunge and adopt new technologies. No need. Payment Service Providers (PSPs), on the other hand, are ultimately responsible for educating their customers and making the right decisions that benefit their business.
Non-traditional payment methods offer many advantages in terms of potential cost savings, security and transaction speed. In fact, according to Nuapay data, 36% of merchants see open banking as having more opportunities than any other payment method in the next three years. Additionally, with the pandemic and the increasing importance of a new generation of digitally savvy consumers, the appetite for new payment technologies has never been higher. In Nuapay’s recent Merchant Perceptions Survey, more than half (56%) of the payment professionals surveyed agreed that their customers are more open to new technologies than they were two years ago.
This gives merchants an opportunity to introduce more efficient, cheaper and secure payment methods. Taken together, the benefits offered to mean that these new methods offer a competitive advantage. With many merchants looking to adopt and convert, you should consider user experience and reduce friction during checkout. Aligning your payment strategy to be “consumer-centric” allows you to focus on the differentiated experience you can offer your customers during the checkout process. This can add value or cause underlying friction and pain.
However, before any real progress can be made, in-house payment professionals must be comfortable with new technologies and ready to implement them. This is where the PSP needs to move the needle.
Personal preferences can affect the absorption of new technology
The same survey found that while a third (34%) of payment professionals are excited to try new payment methods themselves to stay ahead of the competition, nearly half (45%) Admit to being cautious or risk-averse, and 21% claim more. Be a creature of habit.
In fact, more than half (51%) of all payment professionals said they would not introduce a new payment method into their organization until it was integrated into a payment gateway.
Payments professionals who felt “excited” by new payment technologies in their personal lives were more likely to say they would adopt new payment methods directly with payment providers. They were much more likely (60%) to refuse to accept new payment methods until they were pre-integrated.
Job titles have also influenced the willingness of payment professionals to integrate new payment technologies. CFOs and finance executives, who are among the most likely to feel “excited” in their personal lives, are even more likely to say they won’t adopt new payment methods until they are integrated with payment gateways. (48% and 55%, respectively). ). Payment managers were the group most likely to initiate new payment methods directly with payment providers (54%).
This data clearly shows that payment processors should consider the personal preferences of their merchants and adjust their product and service recommendations accordingly.
The role of payment service providers in driving innovation
It’s easy to hold the payment decision-maker accountable. However, as trusted professionals, payment service providers have a greater obligation to educate their customers and encourage them to make the right decisions. This includes helping us stay up to date with the latest technology and its benefits. In fact, more than a quarter of his surveyed merchants (26%) say they rely on their payment processors to keep up with the latest developments in payment technology.
Consumers are eager to try new payment methods, and even risk-averse industry professionals understand the untapped potential of technologies like open banking. Momentum is building, but we need to continue to reach out to the industry.
The data above clearly underscores the importance of aligning products and services with those in an organization responsible for integrating new technologies and payment methods. This means viewing these individuals as consumers and businessmen with their own personal tastes and interests.
If payment providers are unable to convince merchants of the merits of their products, they will not be passed on to consumers, resulting in the loss of abundant business opportunities and benefits.