Digital Payments and Data
There is no looking back for digital payments. Recent research from Mastercard found that a whopping 93% of shoppers want to make purchases using contactless payments. And nearly 90% of in-person transactions across the world now happen at contactless-enabled merchants. This clearly isn’t a passing phenomenon. This shift is only being fuelled further by changing consumer choices. A strong majority of shoppers today want the freedom to buy when they want and how they want.
The payments ecosystem in Europe is unique. A lot of cross-border trade exists within Europe. Merchants have to make and collect payments from across the region. And the rapid growth of digital payments has further added to the complexities. Hence there is a lot of focus to build a singular payments framework that makes it easy and safe for consumers and businesses to transact.
The European Commission is taking various steps to make payments easier in the region. The Retail Payments Strategy and the revised PSD2 guidelines are two such cases. Other measures, such as the EU digital wallet and the digital euro, are also being planned.
This incredible rise in digital payments is creating a lot of data. And it raises a lot of opportunities.
Why is payment data valuable?
Payment data can give you deep insights which can be of great value to your business. You can know more about how, when, and where your customers shop and how they prefer to pay. This can help you design the payment experience around your customers’ needs.
Payment data can help you to monitor your internal processes as well. It can give you a better view of how your payments are performing. You will also be able to detect failed payments or online fraud and respond to these promptly. You can use this data smartly to manage your accounts payables and receivables.
Mapping data smartly can help you gain more control and insights into your payments setup. When you have a bird’s eye view of all transactions, you can respond to the needs of your customers and your business in nimbler ways. All of this leads to a more fulfilling payment and shopping experience for your customers.
This wisdom is not lost to brands. In fact, research from McKinsey has found that merchants are willing to pay up to 30% more for better payment performance and customer analytics. This is not surprising, given that brands today are keen to engage and serve their customers better.
How payments analytics helps you
Payment analytics gives you a closer look at your sales, how well your payments are performing, and how engaged your customers are. You can use these insights to provide more value-added services to your customers.
Analytics helps you to make decisions in real-time within your firm. By looking at your payment data in real-time, you can resolve delays quickly and streamline your payments. You can use these insights to ensure data flows smoothly between internal functions.
Analytics can help you to keep your customers safe. You can detect fraud patterns by analysing your customers’ payment history and earlier events of fraud. This helps you to detect threats and tackle them promptly when they arise.
Analytics helps you to track failed payments. It looks into your payments history to identify failed payments and suggests other payment options, such as a pay-by-link, to shoppers. This, in turn, helps reduce churn and improves customer delight.
How to use payment analytics
To get the best out of your payments, investing in analytics is the way to go. You can use the insights generated by analytics to improve the day-to-day efficiency of your business. You can focus on the areas that need your attention, make timely decisions, and plan for the future. These insights can help you predict payment trends when expanding your business overseas.
Collect and process payment data from varied sources like cards, bank transfers, and mobile wallets. Merge your payment analytics into your website analytics. This will give you a single view of customer shopping habits and patterns. It also makes it easier to match data across sources and makes the data analysis process simpler. This way, you can track your customers’ journey from a single dashboard.
Work with a specialist payments partner who can guide you on how to use analytics. PSPs use advanced tools that can help you to create better offerings for your customers, deepen engagement, and increase revenue. The right partner can help you with usable insights and automate your payments. This will give you more control of your business and unlock new revenue channels for growth.
Antony Robinson is an experienced IT expert, information architect and a customer experience evangelist. He has over 30 years of experience in web technologies, user experience, media, and marketing. Antony is currently the CMO of Novalnet AG, a fintech company in Germany. As CMO, he leads the company’s marketing strategy and fosters collaborations. Antony’s expertise and dedication to technology and innovation make him a valuable leader in his field.