PAYMENT SOLUTIONS
Go BackOPTIMIZING THE MERCHANT ACQUIRING AND ELECTRONIC CHANNELS ACCEPTANCE
Based on extensive research and insights gained from working with more than 30 acquirers and processors across the region, Global Payments Consulting specializes in developing and implementing strategic projects to increase the profitability and efficiency of merchant acquirers and card Processors. We perform acquirers’ P&L analysis on their portfolio by clustering merchants within each category or monthly sales volume distributing merchants based on their respective sales behavior and segmentation strategies. We offer value-added services to merchant acquirers developing a gap analysis matrix based on the evaluation of 12 business functions and more than 600 variables to determine the difference between worldwide acquirers and new mobile, persona, e-commerce, and transactional websites NFC, and m-pos transactions. Technology is changing how people pay. We need to ensure good mobile connectivity, ubiquitous and seamless consumer experiences, and interoperability for more consumers to use electronic payments in their daily lives. The competitive strategies of the Acquiringbusiness will focus on the expansion and positioning of multiple acceptance and electronic channels of financial products, including point-of-sale terminals, ATMs, self-service pos, and new connectivity channels, including mobile and e-commerce.
GOING MOBILE WITH LOCAL FORMS OF PAYMENTS AND TOKENIZATIO
Tokenization is the starting point for digital transformation and replaces the account number with “a unique digital identifier” to initiate digital payment activity. For m-commerce, some local forms of payment that rely on online bank authentication have developed dedicated solutions. According to Visa, 76% of consumers interact with a brand or a product digitally before going to the store, and 93% indicate that the mobile device influences the decision to purchase. Outsourcing services to a payment partner able to remain on top of the rapid evolution of the mobile payment landscape is crucial. Getting on the path to digital means taking these seven specific actions:
• Create a digital vision and business case;
• Map a clear path to digital transformation;
• Nurture an innovation culture;
• Build a seamless, omnichannel customer experience;
• Stay ahead of the technology curve;
• Develop digital talent to drive your future;
• Make your cybersecurity airtight from fraud risks.
By leveraging application program interfaces (APIs) that act as connectors between the bank and other service providers, Banks can rapidly assemble, enable, and digitizing services. Issuing banks should focus on the customer’s experience rather than on unique mobile strategies, and the goal is to customize to the customer’s convenience.
GLOBAL PAYMENTS CONSULTING will implement the best practices of the Acquiring business to integrate and manage multiple acceptance channels and NFC transactions. It will also provide a road map of decisions to evaluate different strategic options and technological alternatives for expanding distribution channels. The value chain of the Electronic Channels business will be analyzed, including Self-service, Transactional Website, Contact Center, Check Dispensers, Automatic Teller Machines, and banking correspondents. Each of the services offered will be analyzed, including cash deposits, checks, payments, consultations, checkbook withdrawals, movement consultations, credit and debit transactions at ATMs. The operational functions of the channels will be evaluated, including the acquisition of ATMs and the preparation of the site, connection of transactions, clearing and settlement, ATMs maintenance, and business administration. The project will identify areas of opportunity, evaluating potential savings in the structure of the electronic channels business, and establish efficiency standards to optimize the control of the business, the plans for future installations, and the goals of transactions to achieve the break-even point. The analysis of the Business as Acquirer measures the operational performance of affiliated merchants and ATMs.
THE MAIN MOBILE PAYMENTS INITIATIVES INCLUDES:
• Customer experience building real, valuable, personal experiences has become banking’s top competitive differentiator.
• Tokenization is a new security technology replacing sensitive account information, such as the 16-digit account number, with a unique digital identifier called a token.
• The token allows payments to be processed without exposing actual account details that could potentially be compromised. • The incremental use of NFC is a time reduction of 5 seconds per transaction that increases the number of daily transactions per trade by 15% in the specific categories. These include transactions at fast-food restaurants, grocery stores, supermarkets, movie theaters, and vending machines.
• Younger consumers (under 35) have the highest probability of adopting a new payment technology and the lower probability of having a premium class credit card. Kiosks, tablets, and video ATMs bring elements of the simple digital experience into the branch environment, making transactions easier for customers.
• Identify gaps in processes, technologies, and resources that limit your ability to deliver exceptional customer experiences.
• Significant financial benefits come to those who build and maintain platforms shared across transactional channels. Positive, technology-enabled experiences help engage and retain a productive workforce.
• As consumers increasingly shop with connected devices, the need for a seamless and secure digital payment experience becomes crucial.
• Without exposing the consumer account to fraud, tokenization enables frictionless, card-free payments in digital commerce environments.