The payments market is not only one of the largest globally but undoubtedly one of the most progressive. With a total $1.9 trillion valuation by 2017 and an expected robust performance in 2019 according to a report by Mckinsey, it is evident that the global payments industry is shaping up to be one of the most powerful.
The report indicated the role of technological evolution in this advancement. Not surprisingly, the advent of innovative technologies has played a prominent role in expanding the payments market by developing and refreshing strong payments strategies to give companies in this variation an edge.
As a result, the financial institutions and payments companies are fast adopting different emerging technologies to stay in form. In this piece, we explore the ways technological applications are revolutionizing the online payment space.
4 Ways Technology is Revolutionizing Online Payments
Businesses are turning to advanced payment technologies to efficiently manage their finances and cater to the needs of their clients. As such, catching up with the speed of the current technologically advanced payments market is imperative as a business owner. Here, we discuss some of the ways technology is changing the online payments landscape.
- Easy and Convenient Data Processing
Dealing with large volumes of data and payments as an expanding venture can be strenuous and time-consuming. Though many data-driven technologies have found their place within enterprises, data storage and handling are still one challenging part of payments analysis.
To analyze volumes of customer data, merchants are required to take the painstaking process of securing, storing and minimizing erroneous risks into consideration – all of which are viewed as arduous for businesses of all sizes.
Today, technology has revolutionized this process by providing online payment systems capacious to deal with volumes of customer data and details. These systems are equipped with key functionalities for data storage, security and maintaining regulatory compliances when the need arises.
- Targeting Globalization and Localization
It is not easy to read a customer’s mind or the unique needs of one’s customers, however, it is important to anticipate their requirements. In targeting cross-border customers, it is important to understand that some may not be familiar with the online payment system integrated on the shopping sites they venture.
To them, shopping on foreign sites can be arduous especially when it does not tally with their local payment methods. As a result, many customers abandon their shopping carts when the payment methods they prefer to use are notably absent on the website.
By using the advancements in online payment gateway systems, merchants now have the advantage of localizing their customer’s shopping experience.
This also includes providing offers and relevant information such as local price conversions based on various consumer’s geo-locations and possibly IP-addresses.
Every merchant can agree that customer experience is a key factor in the expansion of any business. However, one of the identifiable points in brand abandonment by customers that employ online payments methods is the risk of frauds and other forms of breaches.
With technological advancements at their peak, it is getting increasingly difficult to keep out unwanted hands from businesses. One of the advantages of electronic payment system enabled by innovative technologies such as Blockchain technology is the ability to track customer’s behavior and flag anomalies through transparency and data tracking.
The ability to identify customer’s payment behavior through IP address tracking and review any abnormalities in the system is one of the perks of the input of technology in online payments. Today, customers and merchants are now protected from various security breaches like hacks and fraud through fast detection by these advanced automated systems.
- Customizing Payments Rules for Profit Maximization
Ultimately, data transparency is essential in ensuring better profit maximization and conversion rates. The ability to customize payments protocols to track down fraudulent schemes and locations is important for better conversion and revenue generations.
With the power wielded by technology, merchants now have the ability to track down decline rates data for instance, which leads them to fashioning newer rules for better card acceptance rates and lower transaction costs. Online payment systems even offer various additional features, such as enabling users to customize items on their store, to provide a better shopping experience to their customers.
Technology helps with lower transaction costs by providing alternative payment processing methods such as routing avenues – which are tailored to meet up with the demands of the merchants’ and customers’ location.
With this, retailers are equipped with the ability to route their payments between global financial institutions based in the locations of their customers to reduce cross-border transactions and currency conversion fees.
This helps merchants engage better customer experiences which subsequently results in higher profit maximization.
How Technology Could Advance the Future of Online Transactions
It is no news that technology is fast advancing the world and the anticipated digital revolution is taking its place. In effect, the world has seen an influx of new technologies seeking ways to aid the significant transformation of businesses with less effort.
Today, technology is shaping up the payments landscape by providing ways to unite localities globally through better security, faster and efficient communication, data transparency as well as better data analysis.
As a result, the place of digital transactions in businesses is now highly rated as the advent of online payment methods have been noted to breed better customer-merchants relationships and ultimately, better customer experiences.
This is why – as a business owner aimed at staying ahead in the competitive business world – it is important to interact with the power wielded by innovative technologies.