Has the payments sector become too distracted by the constant pressure to innovate? Is it failing to do enough to ensure existing systems are fully optimised and performing to their maximum potential?
The New Performance Agenda white paper, published by emerchantpay, the online payment service provider, highlights the need for the payments industry to take a more data-driven, strategic approach to payments, focusing on improving performance and efficiency across the entire payments eco-system.
And as merchants struggle to keep up with the pace of innovation within payments, with the exponential growth of Alternative Payments Methods (APMs), it is argued that many merchants would see the value of focusing on maximising the value they generate from their current payments infrastructure.
The paper identifies ten key areas where merchants could and should be doing more to optimise performance, including more efficient processing through the payment gateway, higher optimisation of payment pages, more localised and tailored customer experiences, and better rule setting to detect and reduce fraud.
Jonas Reynisson, CEO of emerchantpay, said: ‘The pace of change and innovation within payments gets ever faster. It’s important for merchants to plan for the future but this shouldn’t come at the expense of ensuring their payments systems are delivering maximum value today. This report shows how businesses can drive huge cost savings and grow revenues, simply by using their own data to make more informed, strategic decisions in all areas of their payments infrastructure.’
Currently, not enough merchants are accessing or utilising their data to gain insight into how their existing systems are performing. For instance, around only half of merchants are using their transactional data to generate customised fraud engine criteria, to reduce fraud without compromising conversion rates. Similarly, the report references merchants who have benefited from a 25% reduction in chargebacks, just by analysing data and applying intelligent rules around fraud, and then closely monitoring and scoring transactions against these rules.
The ten key focus areas for driving payments performance are identified as:
- Efficient processing through the payment gateway
- Intelligent analysis of decline codes to reduce declines
- A domestic-first routing policy
- Strategic use of Merchant Identification Numbers (MIDs)
- Highly optimised payment pages
- Localised payment methods
- An agile approach and flexible set-up
- Data-driven fraud policies and rules
- Real-time fraud monitoring and detection
- Smart chargeback management
emerchantpay is a leading online payment service provider. We help e-commerce businesses of all sizes and sectors accept payments via multiple customer touch points. Designed to increase conversions, our offering includes robust payment processing technology, coupled with popular alternative payment methods and a range of acquiring services. We are Level 1 PCI DSS compliant and ensure payment data undergoes robust security checks. emerchantpay is registered as an authorised Electronic Money Institution (EMI).