Earlier this month, I discussed with PYMNTS of the Fintech and payments trends for the rest of 2018. Digital transformation and its impact on payment service providers and acquiring banks. Digital transformation is just as compelling for Small Medium Businesses (SMBs) as it is for the biggest banks, however, integration of payment along with different programs has been challenging.
In the next half of 2018, innovation in payments will be centered on producing payment ecosystems. Payment ecosystems that integrate the POS payment application with a multitude of apps and services that enable merchants to shape new customer services and expand their capabilities and revenue generation opportunities.
Merchants, many of whom are seasoned consumers of apps and smartphones, are on the lookout for more value out of their payment solutions. But the truth is, merchants don’t have the time or patience to experiment with a countless number of apps to produce their own integrated business suites.
They will be looking to banks, acquirers and ISOs to help them make sense of these newfound capabilities. These service providers need to evolve their functions to that of reputable business consultants, able to curate a package of value-added business apps and solutions that solve everyday issues for merchants.
It’s tough for SMBs, as issues are multiplying: they need to have the ability to supply customers with a frictionless shopping experience, the same as supplied by ecommerce competitors; many desire to have the ability to give their very own eServices which range from online ordering, promotion and bookings to bill payment. Additionally, they wish to control their particular point of sale as efficiently as big retailers, with easy integration of purchases, payments and inventory management information. Why shouldn’t they have ready access to analytics and reporting from the same platform on which they do everything else?
As anyone who deals with SMBs understands, there’s not any one-size-fits-all solution to succeed in this marketplace. There are lots of slices to the SMB merchant pie: convenience stores, tailors, hairstylists, hospitality and entertainment, transport to name but a few. Regional and local market attributes have long befuddled technology firms that thought they could go “down market” to smaller-size businesses.
Suppliers of merchant payment solutions used to be hampered by the narrow boundaries of proprietary payment terminals. That has restricted their capacity to offer choice and flexibility to the different slices of this large pie.
Payment service providers will have the ability to create solutions to satisfy the distinctive needs of individual merchants. Accessibility to an open, centralized payment system along with an apps-and-services ecosystem enables service providers to concentrate on creating market-oriented small business solutions that leverage their unique expertise and grab hold of the opportunities created by digital transformation.
To find out more about how to tailor solutions for different type of SMBs visit the marketplace.