Greg Cohen is the CEO of Fortisa leading integrated trading platform.
In times of economic uncertainty, business leaders are looking for ways to reduce costs and improve cash flow. They examine all facets of the operation for opportunities to save money and increase efficiency. Payments is an area business leaders should not overlook, especially in the context of a massive migration to a digital-first payment approach.
Surveys shows that people want seamless payment experiences and that fast, hassle-free payment options are quickly becoming a basic expectation. As an early advocate for integrated payments, a past president of the Electronic Transactions Association, and a payments professional who has spent more than two decades in turbulent economic times, I have seen firsthand the demand and benefits that seamless checkout processes can provide. Today, there is no doubt that businesses can be more efficient by providing customers with the experiences they want. After all, it’s in your best interest to make the sale go smoothly; Frictionless payments make purchases easier and improve purchasing productivity in-store and online. Embedded payments also remove friction in the back office by automating reconciliation processes and increasing cash flow by reducing accounts receivable.
Payments are the tool through which trade can be consumed, and with the right approach, built-in payments create value for both buyers and sellers by improving efficiency.
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More competition for less dollars
In a recessionary environment, consumers will tighten their belts. They will still spend on items or services they need, but discretionary spending will take a hit and consumers will trade in for cheaper items. That means companies will have more competition for fewer available dollars.
The best way to gamble on consumer dollars is to ensure a great customer experience. Think about how easy the customer journey is on sites like Amazon. You can quickly find what you need almost anywhere and complete a purchase with one click.
Friction-free payments can also boost offline sales. An example is the hospitality industry, which was hit hard during the pandemic. Those who have implemented seamless ordering, payment and collection performed better than in-store-only competitors. Innovation continued as personal dining returned with customer self checkouts and pay at the table solutions.
The same applies to service companies such as those in the healthcare sector. A doctor’s office that allows patients to check in, check out and pay on a digital platform can run more competently than a doctor’s office with physical paperwork, checkout and payment methods at the front desk. a good patient experience can increase loyalty, drive efficiency, accelerate cash flow and reduce competitive risk.
Better experience, more organizational efficiency
Embedded payments improve the customer experience and organizational performance by making purchases seamless. Amazon, for example, improves back-end and front-end performance by instantly billing the payment instrument already on file and sending orders directly via APIs to numerous partners, warehouses and/or suppliers with near real-time reconciliation.
It’s important to note that tech giants like Amazon aren’t the only organizations benefiting from digital commerce; restaurants with self-service digital ordering and payment capabilities increase productivity by allowing servers to focus on taking care of guests, rather than manually taking orders and managing credit cards. Similarly, manufacturers and other B2B suppliers can automate billing and collections between themselves and buyers by using built-in ledger reconciliation, receivables solutions, and payment references.
Organizations investing in technologies to improve customer experience can improve operational efficiency across the board with an integrated solution that includes payments. This fulfills two business goals in uncertain times: to attract and retain customers and to save costs.
Track your customers
When it comes to payments, the key to success is having your business where customers are. Today, that means offering payment options through multiple channels. In addition to payment solutions that enable seamless commerce, you can add alternative payment methods, financing solutions, and loyalty programs to expand your presence. But don’t forget to connect your internal processes.
Payments are an integral part of the trading process, think of them as a central part in transit, rather than a destination. The right payment solution creates value up front by driving sales and increasing customer loyalty, and delivers at the back end by improving productivity and accelerating cash flow.
Find the right solution
Once you’re striving to meet your customers’ payment preferences, the next step is to find a payment provider that will act as a partner and help you think through the process. There are several companies that will pitch you. Before you start your search, consult your software vendor about their recommendations for a payment provider that integrates seamlessly into your tech stack. There are two things to consider when looking for a payment provider:
First, understand your business goals. Identify your future growth initiatives, go-to-market strategy, operational needs and technical requirements. Knowing these will help you determine if the provider is right for you. For example, you need to ensure that your payment provider has a similar growth trajectory as your organization. If not, they will stop you. Another consideration is whether you want a partner to integrate publicly or invisibly. Consider both aspects before having partner conversations.
Second, determine your company’s unique needs and differentiators. Don’t blindly look for a payment partner, but look for a champion in the sectors in which your company operates. You want a partner that can solve challenges in every industry where you accept payments. Every industry needs something different for processing payments and maximizing business opportunities. Some payment providers offer simple payment processing, while others specialize in providing solutions for your industry. The bottom line is that there is no one-size-fits-all solution, so make sure the provider can handle all of your unique payment needs.
As business leaders consider their options to reduce costs and increase revenues and cash flows in the coming months, investing in digital trading technology is worth considering. It’s a good idea to weigh the potential to generate additional money while saving money along with a platform’s ability to improve customer experience. Everyone benefits from a payment solution that can achieve these goals.
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