Coming out from the Dark
Businesses are bouncing back from the pandemic years. Many are taking a digital-first approach to face rapidly evolving markets and consumers. This has led to a shift in the mindset of business owners, even amongst small and medium-sized ones. Some are moving online from offline models, while others are filling gaps and using data more. And yet some are moving ahead with strong digital leadership, hyper-automation, and a data-driven approach to decision making and customer engagement. People have become more digital-savvy, and there has been a steady move towards digital payments in Europe, and across the world. To meet this need, a lot of tech innovation is happening, including in the area of payments.
More embedded experiences are emerging to cater to peoples’ love for flexibility and convenience. The rise of subscription and direct-to-customer models have made it critical for businesses to make payments more seamless and an integral part of the shopping journey. Payments today can add value and increase your appeal to buyers and suppliers. It is all about creating a better experience for the customer.
Digital Payments and Business Growth
Digital Payments now contribute directly to your bottom-line growth. How? It helps you build more value for your business. You can widen your reach, engage with buyers better, and make timely payments to your suppliers and vendors. You can make pay your employees on time and pay for goods and services easily and more efficiently. This improves brand differentiation and drives preference for your brand over other rivals. And not just this, insights from payments data can help you spot inefficiencies in your business and improve them. This leads to better usage of resources and saves time and money.
To know more about how digital payments improve your bottom-line, read on.
3 Ways How Digital Payments Improve Your Bottom Line
1. Widens your reach, improves your offerings
Digital payments help you reach more customers across different markets. Today’s consumer is more digital-savvy and is always looking at fast, easy, and secure ways to make payments. They are getting comfortable with technology and using it in more areas of their lives. To reach and engage these prospects, you need to have a digital payments strategy in place. This means moving up from using traditional payment methods like cash to newer methods such as digital wallets, cards, and contactless payments.
Research shows that more consumers are using cards and e-wallets in Europe. Local methods such as the Netherland’s iDEAL, Germany’s Giropay, or Belgium’s Bancontact are also hugely popular. Hence, you must add digital payment methods to your arsenal so that you can reach more buyers and offer them what they like, including how they pay. This helps you improve the customer experience, leading to higher sales.
Read more: Top 5 Must-have Payment Methods in Europe
2. Creates better UX, boosts loyalty and perceived brand image
Digital payments help you to design more seamless checkout journeys. You can easily embed payments into your checkout process so that buyers can pay easily at the click of a button. This reduces friction in the buying process and improves conversion chances. For example, contactless paying options like e-wallets, Tap to Pay, or QR codes at checkout let shoppers pay quickly and easily. This can dramatically improve the chances of conversion and the user experience. When you design payments keeping your customer in mind, you can meet their needs better. Your customers, in turn, trust and love you. This boosts loyalty and does wonders to your brand image and appeal, which, in turn pulls in more customers. This means more revenue from sustained sales.
Also read: How Payments Help You Build a Loyal Customer Base
3. Gives better control over cash flow
Digital payments generate data. A lot of it. Analyzing this data gives you rich insights on how your business and payments are functioning. This helps you make changes as needed, improve your operations, and become more efficient. Payments data also helps you reconcile your payments easily and in real-time. This means you have a better idea of how your cash flows and liquidity levels are. This enables better business planning and decision making. You remain nimble and can respond to crises on time, which builds greater resilience into your business. Having a better view of your working capital helps you deploy cash smartly or hedge against risks. All of this saves you money and helps you become a more efficient business.
Also read: 4 Reasons Why E-commerce Merchants Should Modernize Payments
How can Novalnet Help?
We are a global payment service provider (PSP) with decades of experience in helping Europe’s leading brands process their payments. As trusted advisors to our clients, we offer state-of-the-art technologies and methods to help businesses like yours accept payments globally. From our instant payment plug-ins to our AI-based risk management tools, we have the resources to get you up and running with your payments in a short time, and with zero hassle.
Reach out to us today to know more about how we can help you.
Jose Augustine is the Chief Business Development Officer at Novalnet with extensive experience in European payment industry and a knowledge powerhouse.