Keeping Up With The Digital Acceleration In Payments

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As customers adopt new digital tools and financial institutions transition to a cloud-first infrastructure, the payments landscape continues to evolve. The pandemic has changed the landscape for both businesses and end users. Customer relationships are almost entirely conducted online, necessitating the acquisition of new digital behaviors by both parties. According to a recent consumer survey, nearly half of consumers (45%) now use digital payments or online payment gateway more than they did before COVID-19, and 46 percent expect to increase their usage in the next 6-9 months.

As this preference for mobile wallets over cash, businesses are being forced to update their platform infrastructure or even launch new digital channels. This is part of a larger technology investment. National digital sovereignty is becoming a reality as businesses gain access to an increasing number of technology providers and solutions — access that has the potential to transform their operations.

Keys to Staying Ahead in Digital Acceleration
While the digital transformation provides significant opportunities for financial institutions ...
... to separate themselves from the pack, there is also the risk of falling behind. To keep up with the relentless pace of digital acceleration, businesses must have a dedicated technology strategy. Here are a few things they should remember.

Prioritize Digital Transformation & Modernization
Because today's core payment functions require digital support, modernization must be prioritized. Customers may abandon their banking provider if they are not served in their preferred digital format. A full-scale digital transformation requires ensuring that all areas of the business are equally supported and engaged with the appropriate technology.

Fortunately, many organizations are recognizing the value of modernization; according to the World Payments Report, 65 percent of banks believe digital transformation will be the primary driver of future initiatives. In practice, this entails committing to and prioritizing a company-wide technology overhaul.

Focus on Mobile & Cashless Tools
Because of the pandemic, most goods had to be purchased remotely, via a desktop or mobile platform. Because of the ease and convenience of these methods, many consumers continue to prefer cashless tools — even when they are in a physical setting. According to one study, more than 75% of people use digital payments, whether it's a browser-based or in-app purchase, a mobile-supported in-store checkout, or a peer-to-peer transaction. Payments companies must therefore provide the necessary infrastructure.

Because of mobile's growing popularity across all demographics, developing an efficient mobile experience should be a priority for any financial institution today. Integrating cashless digital options should also be prioritized. Whether these products are developed internally or in collaboration with third-party solutions, making them available is a must for the best online payment gateway company.

Remember the Cloud is Integral
Adopting a digital-first strategy opens up numerous opportunities to expand services and improve the customer experience. This also necessitates having the computing power to handle much larger amounts of data and transactions. While some businesses may choose to expand their physical server network, the majority of businesses have determined that a cloud network is the best fit for their technology infrastructure.

Payment companies can scale their capacity as needed and securely store all information with a cloud network in place. A cloud provider can also assist you in implementing useful technology integrations that improve your service offerings while utilizing their built-in privacy protocols. Companies will benefit from remembering the importance of the cloud and taking advantage of all of its opportunities, regardless of where they are in their digital transformation.

Keep User Experience at the Center
The ultimate goal of staying ahead of the digital curve is to keep customers satisfied. It is pointless to implement new technologies unless they improve the consumer experience and make your product more accessible, efficient, and enjoyable. With so many solutions available, payment institutions may find themselves spending money on unnecessary tools that alienate their customers if they do not prioritize the user experience in their decision-making.

Companies can identify what is truly needed in their platform by listening to their customer base and observing trends in customer behavior. Only when they understand what will improve and what will detract from the customer experience can they be confident that they are investing in the right modernization.

Staying Ahead of Digital Acceleration
Everyone understands that the future is increasingly digital, but determining the best path forward is a bit more difficult. Deploying new technologies can be a time-consuming and costly process, so businesses must do their homework to determine which areas are worth investing in. One thing is certain: making digital transformation a business priority is critical to reaping the benefits.

Tracking consumer behavioral shifts reveals that mobile-first and cashless tools should remain a priority for all payments organizations in terms of specific focus areas. Leveraging the cloud to support new integrations will help you set yourself up for success, while listening to end-user feedback and checking in with customers will keep businesses on track and up to date with digital acceleration.