It perhaps comes as no surprise that in the age of technological transformation, most industries are evolving at a rapid pace, and the payments industry is no exception. The main change for this sector has been the migration of consumers away from traditional payment methods, and toward electronic alternatives.
While this has resulted in many positive outcomes, a particularly favourable bi-product for businesses has been the huge increase in the volume and accessibility of data readily available to companies in the payment space.
Like organisations in any sector, payments companies can benefit significantly from investing time into developing a successful strategy for data collection, storage, payments analytics and implementation. From streamlining business processes, to increasing overall productivity and profitability – the benefits are vast.
Let’s take a look at a few of the many market opportunities that businesses in the payments industry should consider in order to best take control of the diverse and wide-ranging data assets they possess.
Detect Frauds In Payments Processing
The analysis of big data can provide insights into the totality of transactions processed through the system. For example, analysis of transaction data can be used to not only identify frauds but also help in developing new models to combat fraudulent scams and risks in payment processing.
Provide Personalised Payments Solutions
There is a lot of transactional data that can be used to process and display personalised payment options to customers, based on their payment history and other demographic details. For example, online retailers can store the customers’ preferred payment method and channel details to enable a quick and seamless experience.
Know And Connect With your customer better
Big data can be an extremely helpful tool for companies in terms of knowing their customers better, successfully segmenting them, personalising relationships and in turn, increasing customer satisfaction. For example, with the use of big data, companies could study different buying habits ranging from millennial to older customers and tailor experiences accordingly.
Cross-Sell Or Up-Sell Products And Services
Analysing data related to consumer habits and preferences can be used to develop effective cross-sell and up-sell recommendations resulting in better profitability. For example, a payment service provider could cross-sell or up-sell other products and services on the basis of their current habits. This process could also involve the provision of exclusive discounts, and encourage them to purchase these products and services.
In the payments future, providers must contend with new competitors, emerging technologies, regulatory challenges and increasing customer demands, as well as the ever-increasing risk of fraud. Success will be dependent on being reliable, agile and insightful, which will be gained by harnessing the power of big data.
By equipping staff with the tools and skills to gather and understand data, simplify complexity and make more intelligent, informed business decisions organizations can ensure they are truly future-ready.
