A key reason for payment complexities is the utilization of legacy systems.  Such systems cause issues to crop-up in payment processing across many financial institutions, despite being part of a financial ecosystem. Enhancing payment processing with innovative technologies is essential for growth. According to a McKinsey survey, Banks that use technology to transform customer experience have increased customer satisfaction by 15 to 20%, reducing cost to serve by 20 to 40%, and boosting growth by 20%.

Technology innovation has led to the changing preferences and expectations of customers at a rapid pace. However, being able to make purchases and pay for them using mobile devices or channels, whenever and however they want, is their top-priority. For instance, customers expect simple and frictionless shopping experiences every time.

Payment has a significant impact on conversion rate (rate at which customers complete a transaction), as purchases are abandoned when payment processing has too many frictions or the desired mode of payment is not available. You need to have and leverage a payment innovation strategy to remain competitive. As a financial institution or merchant, you can enhance your approach to customer payments, so as to control cost and improve consumer subscriptions. A few considerations include:

One key reason for payment complexities is the utilization of legacy systems. Such systems cause issues to crop-up in payment processing across many financial institutions, despite being part of a financial ecosystem. Enhancing payment processing with innovative technologies is essential for growth. According to a McKinsey survey, Banks that use technology to transform customer experience have increased customer satisfaction by 15 to 20%, reducing cost to serve by 20 to 40%, and boosting growth by 20%.

Technology innovation has led to the changing preferences and expectations of customers at a rapid pace. However, being able to make purchases and pay for them using mobile devices or channels, whenever and however they want, is their top-priority. For instance, customers expect simple and frictionless shopping experiences every time.

Payment has a significant impact on conversion rate (rate at which customers complete a transaction), as purchases are abandoned when payment processing has too many frictions or the desired mode of payment is not available. You need to have and leverage a payment innovation strategy to remain competitive. As a financial institution or merchant, you can enhance your approach to customer payments, so as to control cost and improve consumer subscriptions. A few considerations include:

1. Enhancing the CX in order to improve conversion rates across multiple mobile devices: Over 3 billion people of the world’s population are mobile internet users. GSMA intelligence states that mobile commerce has grown in recent times as a result of extensive use of mobile devices, such as smartphones, mobile devices and tablets. As a result, many consumers prefer to transact or make purchases via mobile devices. Therefore, in order to increase checkout conversion, there is a need to optimize the mobile customer experience. For instance, utilizing one-Click in-app user experience design, will enable the payment process to be in such a way that it can retain and re-suggest the previous transaction made by consumers in subsequent transactions. Using the information to consistently improve the checkout experience, provides some form of innovation that makes you standout, and turns your customers into brand loyalists, as their preferences are being considered. A simple user interface that offers responsive user experience on all devices is necessary.
2. Recurring Payment Consideration. Consumers want to be able to handle recurring transactions and having a suitable solution that accommodates this expectation enhances their payment experience. With one-payment platform solutions, customers can make payments without friction, as it is built to take care of recurring payments and complexities. Implementing a regional acquiring strategy with a local approach, local regulatory rules, payments infrastructure, and card types, can have a direct influence not only on conversion rates, but also on costs.
3. Acceptance of multiple mobile payment methods and mobile wallets. It is not enough to only offer customers their preferred payment methods, you need to reduce friction in order to provide them the best experience. A One-payment solution platform can provide a consistent experience across any device. Whether the user is paying via the mobile app or browser, the checkout has been designed to delight the user and drive conversions on any screen size.
4. Offering Frictionless Payment. As part of digitization and increasing competition from innovative service providers, Banks and Credit Unions need to completely revamp their payment services to effectively cope with changing requirements of customers. Two of the most crucial factors for success here include a high degree of flexibility offered in payment solutions and clear customer orientation. To be able to successfully ride this digital wave and ensure a comprehensive digital transformation, financial institutions today need to ensure that they have the right strategic mix of automation, experimentation, analytics and personalization tools in place, that can support this and help them build for rapid change. Technological innovation can replace the outdated systems of individual banks, improve processes, increase efficiency, and strengthen control. They can also provide opportunities for creating new products and services that benefit customers, frictionless transaction processing in and outside of your ecosystem, Swift fund transfers, and instant payments between member banks. Customers can easily Send Money, Receive Money, Pay Bills, and enjoy Online Shopping.
5. Opportunity for revenue generation. Financial institutions earn revenue from transactions that take place through their platform, and enjoy the benefits of operational float; low transactional costs/charges across different financial providers and across different regions; reduced transaction charges compared to Mobile Money transaction charges.
6. Integration with CBS. A One-payment solution platform can be integrated with any core banking system and business applications.
7. Flexible and Affordable pricing: Member Financial Institutions determine what they will charge per transaction, thereby able to attract and retain customers.
8. Easy on-boarding of customers and Utility companies. Allows customers to conveniently transfer money anytime and anywhere at remote locations and in rural areas. Ecosystem of Customers from member Financial Institutions – ‘One Customer for All’. Easily enroll numerous utility companies and provide added value to customers with 24/7 instant payments. Also, it has functionality for onboarding customers, billers and merchants.
9. Transaction status notification. It comes with messaging capacities for inquiries and feedback requests, such as balance inquiry, account statement report provision and prompt e-receipt notification via SMS.
10. Instant Payment Processing. Payment between member banks together with reversal functionality. Also, easy provisioning for customers utility bills payments, such as electricity, water and more.
11. Secured transaction processing. Suitable for financial transactions with end-to-end encryption, 2-Step authentication verification via PIN & OTP and high-security module. 100% secured. Secure data transfer and tracking, enabling financial institutions to meet compliance with global standards. 

To conclude, the expectation of businesses is to remain competitive in the market, realize optimum revenue growth, costs and operational risk reduction and provide customer focused experiences. Value and speed of remittance is of essence in payment landscapes across the world, with real-time payments providing easy and faster accessibility of funds. With the availability of partner ecosystems, customized and personalized products can be offered to customers. Innovative platforms can help Banks to focus on customer propositions and servicing. MonieWire is your One-payment platform solution that can accelerate your instant payment transformation plan. Get in touch with us today!