Running a business is hard work. There are so many things to think about – from marketing and sales to product development and customer service. It can be difficult to keep track of it all, especially when you’re trying to grow your company.
That’s why it’s important to partner with the right payment vendor. By doing so, you’ll be able to focus on what you do best and leave the rest to them. In this blog post, we will discuss seven reasons why choosing the right payment vendor is essential for business growth.
Regulations
As the payments landscape continues to evolve, regulators are keeping a close eye on developments. Initiatives like Open Banking and PSD2 have been designed to promote innovation and competition, but there is also an increased risk of fraud and abuse.
As more new players enter the market, it becomes increasingly fragmented, making it more difficult for authorities to keep track of all the different activities taking place.
This is likely to lead to greater scrutiny in the future, as regulators attempt to crack down on bad actors and protect consumers. Nevertheless, the payments industry is still in a period of transition, and it remains to be seen how these changes will ultimately play out.
Conversion
Have you ever started to purchase an item online, only to click away from the page before completing the transaction? If so, you’re far from alone. In fact, studies suggest that the average shopping cart abandonment rate is just under 70%.
That means that for every ten people who add an item to their online shopping cart, seven will leave the site without completing the purchase. There are a number of reasons why this might happen.
Sometimes, consumers get cold feet when they see the final price of the product, including shipping and tax. Other times, they may be comparison shopping and decide to purchase the item from another site.
Regardless of the reason, businesses need to be aware that attracting a consumer to their site is only half the battle. They also need to make sure that they provide a smooth and user-friendly checkout experience if they want to increase their chances of making a sale.
Pricing
When it comes to payments, there are a lot of things to consider – and the fees are just one part of the equation. You’ve got interchange, assessment, markup, and processing costs, all of which can add up.
And that’s not even considering how businesses will be billed, which could include one-time setup fees, monthly costs, and transaction fees. So, while the price is definitely important, it’s not the only thing you should consider when choosing a payment vendor.
After all, you don’t want to go with the cheapest option only to find out that they’re unreliable and cost you more in the long run. So take your time, do your research, and pick the right provider for your business.
New technologies
When it comes to payments, things are changing fast. If you’re not keeping up with the latest innovations, you could quickly fall behind your competition.
One of the most exciting recent developments is Distributed Ledger Technology (DLT). Also known as the blockchain, DLT is a digital ledger that allows transactions to be securely recorded and verified.
Although global spending on DLT was slowed by the pandemic in 2020, it is still expected to reach $4.3 billion this year, with cross-border payments driving this growth. If you’re not already using DLT in your business, now is the time to start considering it.
A reputable and forward-thinking payments provider will be able to help you make the most of this exciting new technology.
Anti-Fragility
The COVID-19 pandemic has been a shock to the payments industry. In just a few months, customer behavior has shifted dramatically, economic activity has declined sharply, and payment operating models have come under strain.
As a result, the payments vendors that are best placed to survive this disruption are those that are adaptable. The most successful vendors will be those that can quickly adapt their products and services to meet the changing needs of their customers.
They will also be those that have the financial resources to weather the current downturn. Finally, they will be those that have a clear understanding of the new payments landscape and how it is evolving. In an industry that is undergoing such rapid change, adaptability is essential for survival.
Reconciliation
If you are a business owner, then you know that one of the most important aspects of running your business is making sure that your payments are reconciled quickly and efficiently.
This is why it is essential to find a payment vendor that offers fast and reliable reconciliation. With businesses now receiving payments via multiple methods, it is also important to find a vendor that offers omnichannel reconciliation.
This way, all of your payments will be covered. By finding a vendor that offers these services, you can be assured that your payments will be processed smoothly and efficiently.
Building trust
Payment vendors have always had to be vigilant about security, but the pandemic has shone a spotlight on the risks associated with digital payments.
Coronavirus-related scams have resulted in a loss of almost £1 million in the UK in the first month of the pandemic alone. In response, vendors have had to increase their security measures, both to protect their customers and to ensure that their businesses can continue to operate safely.
The good news is that, by working together, vendors and customers can help to make digital payments more secure for everyone. Here are some things you can do:
- Only use trusted payment vendors who have robust security measures in place.
- Be aware of the latest scams and how to spot them.
- Check your account regularly for any suspicious activity.
- Report any suspicious activity to your bank or payment provider immediately.
Choosing the right provider
As the payment sector expands, it can be tough to pick a vendor that’s right for your business. Here are some things you should consider before making your decision:
- How much will the service cost?
- What kind of features does it provide?
- Does it deliver the kind of support and security that your customers can trust?
Assessing each vendor’s key functionalities carefully is essential to finding the right fit. With so many options out there, taking the time to do your research now will pay off in the long run.