With all the new payment options coming – such as mobile and contactless technology – it’s unlikely that a financial institution is going to have the ability to support them all. Assuming that’s true, the question becomes: where is the right place to focus?
Merchant payment processing services, the capability for all types of businesses to accept a wide range of electronic payments, is an increasingly important service offering component for financial institutions (FI) of all sizes. A payment processing partner should offer secure, reliable merchant support, a comprehensive product offering and also deliver added business value to the FI. In addition, FIs should work with a partner that can deliver consistent level of service regardless of a merchant’s size and type. Merchant benefits could include one provider for all payment solutions, convenient services such as consolidation of statements and anytime, online account access. Other considerations include the cost structure and transparency of costs for the merchants, which can help eliminate funding questions and surprises.
A deep understanding of consumer preferences combined with using price sensitivity scores to drive customer and prospect segmentation will be critical to success in the new era of banking.
J.P. Morgan’s Eduardo Vergara talks new payment processes in the form of Single-Use Accounts and Purchasing Cards.
With all the new payment options available – such as mobile and contactless payments – it is unlikely that a financial institution is going to have the ability to support them all. Assuming that is true, the question becomes: where is the right place to focus? James Poteet explains.