IT systems are the heartbeat of financial institutions such as banks, merchant acquirers, and payment solution providers. They provide mission-critical business functionality and need to be reliable. Often large and complex, IT infrastructure can represent large investments.
The primary objective for such investments was to increase the number of merchants that could be served, scale the number of payment transactions processed, and to streamline processes for greater profit. However, many organizations are dealing with infrastructure that has become outdated and hinders their ability to streamline operations and processes.
Consumer expectation creates needs for new digital strategies
Today, as our recent research with PYMNTS reveals, merchants are more than willing to switch providers to suit their customers’ needs. Consumers are looking for better experiences, not just products, so merchants want to innovate in order to transform the in-store experience. Merchant solution providers would do well to focus on how to provide this innovation with payments.
John Maxwell, who leads PwC’s Global Consumer Markets industry sector, recently asserted that return on experience (ROX) is the new Return on Investment (ROI). Financial institutions’ success and profit is no longer just a numbers game, but rather relies on the experience they provide. Value-added services can generate recurring revenue streams while enhancing customer experiences. So, when choosing new systems and infrastructure, customer satisfaction and experience should form the core of any strategy.
Protection of IT investments versus pursuit of next-gen acquiring
For merchant payment solution providers, previous investments in technology systems that are now overly cumbersome make it increasingly difficult to meet new demands of merchants and consumers, as well as regulators and suppliers. While existing systems may still work, the declining user experience can impact business negatively.
But, as the American author Betty Friedan noted, “Aging is not ‘lost youth’ but a new stage of opportunity and strength.” Same applies to our industry, long established merchant acquirers can thrive and build on customer trust by adapting existing infrastructure to thrive on new opportunities such as smart POS.
Merchant payment solution providers want to protect past investments while ensuring they can pursue next-generation acquiring opportunities. In this white paper, acquirers learn how to adapt to and thrive in a new world of value-added services.
Download the white paper to find out how to step into next-generation acquiring while protecting past investments.