June 21, 2016
There has never been a more exciting time for the payments industry. The omnichannel era is here, powered by millennial shoppers who are comfortable browsing and buying through a variety of devices. This represents a glut of opportunities for the ambitious payment solutions provider. Merchants of all sizes now have the potential to target a massive number of international consumers and they are hungry for payment solutions that support the channels and methods they need to do so.
And yet, when I look at the solutions offered by even some of the biggest names in our industry, I see few that are truly up to the task.
Legacy platforms made for different times
The problem is not willingness or lack of knowledge. The problem is that [hide for=”!logged”] established PSPs built their platforms years ago to suit a shopper-merchant relationship from a different century. The answer? PSPs need to rip up their legacy platforms and build solutions powerful enough to suit the present and adaptable enough to deal with the rapid innovations of the future.
What every solution should offer
This is not an easy task. Building a state-of-the-art payment solution that suits today’s global retail environment requires a great amount of knowledge, insight and experience. There are many key issues to consider:
Split payments – With marketplaces set to control 40 percent of online retail by 2020 and an increasingly large number of merchants acting as intermediaries between buyers and suppliers, it is simply no longer acceptable for PSPs to not support automated split settlements.
When funds need to be split between three or more parties, things get tricky. Commonly, each portion must be calculated, divided and converted into the correct currency before being transferred to the right account at the right time. In many regions, funds will need to be held in escrow until the product or service is delivered.
The only way for merchants to manage all of that without exposing themselves to a high risk of error is to adopt an automated system that divides, converts and releases the payment in a reliable and simplified manner that meets each region’s legal requirements.
Localization – While card payments might dominate the U.S. and the U.K., most other markets will have a popular alternative. Therefore, cross-border checkouts need to be equipped with the right mixture of alternative payment options to suit the target customer.
Centralized channels – Taking full advantage of omnichannel retail means more than simply allowing your shoppers to purchase via mobile, desktop or POS. It also means bringing these channels together into a single, centralized system and building a truly holistic buyer experience around it.
An effective omnichannel payment solution will route each transaction to the acquirer with the best acceptance rates, while also storing shopper details so the merchant can “follow” buyers from device to device and channel to channel, encouraging repeat business and smoother conversions.
The future for the payments industry is bright. Yet, it is also up for grabs. The millennials are at our digital doorstep, armed with an increasingly strong buying power and a taste for omnichannel shopping. Merchants that want to maximize their revenue will need dynamic PSPs that meet the extremely high payment expectations of this influential demographic.
Gijs op de Weegh is chief operating officer for Payvision. Amsterdam-based Payvision is one of the fastest-growing global acquiring networks in the world. The company simplifies the complexity of cross-border e-commerce through a highly effective and secure transaction processing platform. Acapture, Payvision’s global omnichannel PSP, designs payment solutions that eliminate the obstacles modern online merchants face in their payment processing and support cross-border growth. [/hide]