Forrester were commissioned by Fabrick and Mastercard to survey European payment industry decision-makers about embedded finance. One of the key findings of Forrester’s report was that organisations need to make payments “an anchor for strategic ambition”. I rather like that phrase, because it’s how I see payments in an organisational context.
Don’t just add payment methods — adopt a payment strategy. Firms that have acquired capabilities just to offer customers as many payment methods as possible have quickly found themselves having to deal with barely controllable complexity and skyrocketing costs. Firms should use payments data, behavioral insights, and aggregated account data to segment customers based on their needs, create predictive models (e.g., credit default likelihood), and prioritize payment solutions that optimize across the entire lifecycle.
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Wrap empathy around payments.
In times of economic turbulence, payers need understanding and support. Offering payment flexibility, allowing business and consumer “buy now, pay later,” micropayments instead of subscriptions, and faster payments enabled by click-to-pay links in exchange for repayment discounts are all ways to demonstrate commitment and empathy to the customer. Firms should offer these options to increase stickiness and enhance customer experience.
Snippings 