Nowadays mid-sized businesses are increasingly recognizing the importance of streamlining their payment processes. With economic unpredictability and a shifting job market, optimising payment operations is a necessity for growth and sustainability. Today Transferty’s experts will explore the actionable strategies that can transform the payment process of the mid-sized businesses, drawing upon recent data and trends.
Analysing Current Business Climate
The landscape for mid-sized businesses is rapidly evolving now, with a marked shift towards digitalization in payment processes. This transition is driven by consumer behaviour changes and technological advancements. According to a study by FNBO, nearly half of such business owners are planning expansion. Furthermore, employment projections by mid-sized businesses in the United States indicate a significant increase, expected to reach over 63.3 million jobs by 2025, comprising nearly 45% of the business workforce. As these businesses gear up for growth, understanding and implementing effective payment strategies becomes pivotal. Now let’s get deeper into the most effective ones.
Expertise and Partnerships
Knowledge is the corestone of business efficiency. Mid-sized businesses could face the issues related to the payment optimisation, infrastructure development or certification. Such gaps lead to the financial and reputational losses. To address this, businesses should not hesitate to cooperate with external experts or third-party payment solutions, as such companies could cover the weaknesses companies have, allowing them to focus more on the business operations.
Diversifying Payment Methods
Offering a variety of payment options, including digital wallets, caters to the diverse preferences of a global customer base. This diversity in payment options is crucial in enhancing customer experience and retention.
Optimising Payment Gateway Selection
Choosing the right payment gateway is crucial for mid-sized businesses, especially considering the expansion plans of 48% of small to medium business owners. Gateways should offer scalability, multi-currency support, and seamless integration with existing systems. Emphasis should be on low transaction fees, high transaction speed, and robust security features to handle an international customer base effectively. To streamline the efficiency, look for a payment gateway supporting routing and cascading technologies. Such technologies greatly boost payment optimisation.
Mobile Payment Integration
The integration of mobile payment solutions is essential to cater to the increasing number of consumers using smartphones for transactions. This move not only aligns with consumer preferences but also opens new opportunities for revenue through improved customer convenience.
Prioritising Security in Payment Processes
In a landscape where the global average cost of a data breach in 2023 was US$ 4.45 million and the average cost of a data breach for financial institutions, standing at $5.97 million, prioritising security in payment processing is paramount. Implementing advanced security technologies such as encryption, tokenization, and fraud detection systems ensures the safety of customer data and builds trust. PCI DSS certification is also a vital step to ensure security. Businesses may obtain such certification by itself or find a payment gateway partner, who is already certified according to PCI DSS requirements.
Streamlining the Checkout Experience
Simplifying the checkout process, particularly in online transactions, can significantly reduce cart abandonment rates. This involves reducing the number of steps in the payment process, offering payment methods variety according to the customer preferences, and ensuring the process is intuitive and user-friendly.
Conclusion
For mid-sized businesses, focusing on these strategic payment process enhancements is critical. The described strategies offer a multitude of benefits beyond the immediate efficiency gains. Firstly, they position businesses to better cater to a global customer base, breaking down geographical and currency barriers. This global reach is crucial in tapping into new markets and diversifying revenue streams. Secondly, by enhancing the security of transactions, businesses not only protect their customers but also strengthen their own reputation and trustworthiness in the marketplace. This aspect is particularly vital in digital payments where data breaches and cyber threats can significantly impact customer confidence and loyalty. By adopting tips from Transferty, businesses can streamline their operations and position themselves for growth in a digitally-driven market.
Sources:
- FNBO – “Study: Almost Half of Small and Medium Business Owners Plan on Expanding their Businesses in 2023”.
- McKinsey & Company – “The 2023 McKinsey Global Payments Report”.
- J.P. Morgan – “5 Key Payment Trends to Watch in 2023”.
- Capgemini – “Top trends in payments 2023”.
- Digital Commerce 360 – “Mid-sized businesses eye more digital payment options”.
- Elavon – “Payment Processing Trends for 2023”.
- IBM “Cost of a Data Breach” Report 2023.
- Bank of America “2023 Mid-Sized Business Owner Report”
