Why Legacy Payment Systems Hurt Your Business

The cost of using legacy payment

Businesses still run legacy payment systems, even with better alternatives around. Why? Well, the reasons are many. Some don’t want to reinvent the wheel, while others fear going for something new and hence play it safe. For some others, it’s a lack of awareness about better options. But to stay competitive, merchants can’t risk sticking to older technology and still hope of market leadership.
In this blog, we outline a few compelling reasons why legacy payments slow down your business, even potentially risk it. Read on to know more.

How legacy payment systems hurt your business (in the digital world)

1. Can’t give you speed, scale, and flexibility
Some of the main issues with these systems is that they create information silos. This locks up valuable data and makes your business slow and inefficient. Plus, there is a lack of interoperability between functions. These systems are also difficult to scale.
When you move into new markets, attuning with the needs of the market becomes tougher when you use legacy payments. It becomes difficult to respond quickly to market and consumer needs. And they often come in the way of your evolving business strategy.

2. Hard to integrate
Legacy systems make it hard for you to integrate new payment methods. Since they run on older tech, retrofitting new tech to it doesn’t work the best. Businesses that have been using legacy payments or have acquired new tech through mergers, often find it a challenging to make all disparate systems work together. This hampers them from responding quickly to customer and market needs.

3. No data, no action
Payments data is gold. The more data you have, the better your CX. Data helps you spot trends, patterns, and preferences. And this helps you respond to market trends and buyer needs faster. Insights from data helps you to understand your customers better – from how they shop to how they pay. You can tweak your offerings, improve the CX, and in turn, enhance buyer experience and loyalty.
Legacy payments cannot give you a complete view into your customers’ shopping behaviour. Without actionable insights, you can get quite lost to know what your buyers prefer or need. Modern payment systems help you get insights from data, which help you design your payments so that they don’t fail. You can easily measure how effective your payments are and where you need to make changes.

4. Less transparent; costly and inefficient
Legacy systems use manual processing and reconciliation. This leads to latency and errors. Thus, you end up shelling out more money due to higher operating costs. Add to this the risk from old and aging systems. They are easier to hack into, making you vulnerable to data breaches and fraud.

The Need to Upgraded

If you are still using legacy systems, you might be missing out on the chance to cut costs and improve efficiency. Running older tech takes away your flexibility to move at speed and slows down growth. Over time, these inefficiencies build up, impacting your bottom line. Not doing anything can have serious long-term consequences for your brand.
That is why migrating to newer technology makes sense. Switching to a payment service provider with advanced capabilities can be the investment your business needs.

Learn more: Why Should You Modernize Your Payments?

How can Novalnet Help?

If you are looking for a partner to upgrade your payments, we can help. We’ve made payment solutions simple so that you can avail the best of technology for your business, no matter where you are.
As trusted advisors to Europe’s leading brands on all things payments, our state-of-the-art technologies and methods 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.