By Nikhita Hyett, EU CEO of BlueSnap
Globalization has brought businesses and consumers closer together; however, to truly capitalize on this market opportunity, companies need to think globally and act locally. We are increasingly seeing the benefits of localizing payments, with businesses realizing a 12% increase in revenue simply by offering local currencies.
Global payment capabilities fall under the broader payment orchestration offering – a strategy that enables businesses across all industries to integrate and manage the entire end-to-end payment process, including payment authorization, transaction routing and settlement reconciliation. It is a growing solution where all elements of an international payment process are orchestrated through a single interface, optimizing business payment procedures.
It is an essential tool for businesses to increase revenue and reduce costs. But how can they actually achieve this?
Integrate not innovate
Each overseas market has its own unique needs that influence how buyers pay. That said, businesses should take note that end users – whether consumers or other businesses – want to feel secure and have that sense of familiarity when making a purchase. To achieve this, payment trends in various areas can be leveraged through two crucial strategies: local acquiring and local payment methods.
For example, the Dutch payment method, iDeal, is used by more than half of the Dutch population with 99 million iDeal payments made through non-Dutch websites. By offering IDeal, international companies are able to convert Dutch customers. Offering local payment methods increases conversation rates and decreases the number of payment changes for local customers. Businesses don’t need to create the latest payment technology themselves, they just need to partner with payment providers to help them integrate local payment methods, to reassure global customers.
Also, when it comes to card payments, acquiring local cards is essential. This is when local payments are processed through their local region. For example, local acquiring would allow a UK business with a US entity to process US cardholder transactions through their US entity, helping the business not only avoid cross-border charges, but also to increase authorization rates and conversions.
Localizing the customer experience also gives businesses the ability to reduce and better manage chargebacks, as there will be no confusion on buyers’ bank and card statements.
In short, if companies want to guard against abandoned checkouts and post-purchase disputes when they expand globally – i.e. increase sales and reduce costs – they need to address their transactions locally and adapt to local payment preferences.
Everyone wins with in-app payments
Another key element of payment orchestration is integrated payment, which is the ability to integrate payment processing into a financial or non-financial brand’s existing software. This allows businesses to accept payments through their own apps and systems rather than through a separate product or vendor.
The integrated payments market is estimated to grow to over $7 trillion over the next ten years – and it’s already delivering benefits to businesses and their customers.
For businesses, this opens up new revenue streams by allowing them to monetize payments and offer new products and services directly to their customers, rather than through third-party websites and third-party sites that take customers away from their own channels.
For customers, it provides a frictionless user experience and faster checkout. Integrated payments not only allow customers to purchase products and services from sellers in a single, easy-to-use platform, but also to purchase financial services from traditionally non-financial brands.
Embedded payments are already transforming a number of non-financial industries. For example, in the education sector, software companies like VeraCross are helping schools get paid faster by optimizing the payment experience and giving end users more ways to pay. This allows higher education institutions to provide a central location for tuition fees, purchases from school stores, and donations – monetizing these payments for schools and providing convenience for busy students. That said, in-app payments are just one element of payments orchestration and for businesses to take full advantage of this strategy, there needs to be a total overhaul where payments orchestration is at the heart of every experience. of payment.
Reduce costs with payment efficiency
The final pillar of payments orchestration concerns those who perform B2B payments and transactions – the process of automating the accounts receivable (AR) process.
Automation allows companies to transform arduous AR processes into an optimized, efficient and consistent process. This process is key to increasing revenue, as businesses need to keep overhead costs in mind.
Those who looked inside discovered that they could get paid on time if they optimized their invoicing and invoicing procedures. In fact, 89% of companies that have automated their Accounts Receivable (AR) processes now get paid on time because it eliminates the risk of human error. This improved efficiency relieves AR teams of arduous tasks and manual processes, allowing them to focus on delivering great customer service.
As augmented reality teams have more time to focus on portion rather than chasing them, we see an increase in productivity. According to our research, increased productivity translates to a 67% increase in customer satisfaction and a 56% improvement in customer retention.
Orchestrating a better future for business
Payment orchestration increases a company’s profit-generating capabilities by optimizing payment processes. And, if you think checkout experience has nothing to do with the bottom line, you couldn’t be more wrong.
By organizing all aspects of payment processes in one place, businesses can focus on their core competency while generating passive income. From local payment types to integrated payment experiences and AR automation, businesses are taking a step closer to increasing profits through payment orchestration.