How digital payment solutions drive business growth?

Are insecure and slow payment procedures hindering your business growth? Or does your business still use accounts receivable, accounts payable, and paper checks? Learn from businesses using the best digital payment solutions for secure and efficient transactions.

According to the Federal Reserve’s three-year payments study, payments made by check are steadily declining in the United States, from $18.1 billion in 2015 to $11.2 billion in 2021. This trend is gradually resulting in a increase in card payments by 10.0% per year from 2018 until 2021. This indicates that businesses have started to adopt different cashless payment systems for optimized operations.

Recent studies from Juniper Research show that global digital card transactions will increase from 28 billion in 2022 to 121 billion in 2027, with the United States accounting for 72% of B2B digital card transaction revenue. So, if you are still hesitant to use cashless payment methods as an integral part of your business operations, embrace the change to propel your business growth.

After all, there is a reason why digital payment solutions offered by global technology and business process companies have quickly become a dynamic and attractive attribute of the payments landscape in most businesses. Let’s explore the benefits of digital payments for businesses:

1. Digitizing front-to-back payments

With front-to-back payment digitization services, you can use all digitization levers simultaneously, revolutionizing business transactions, procedures and overall operations. Digital payments surveys further improve important customer and business metrics, providing a seamless experience for customers, which is crucial for business success in today’s market.

Front-to-back digitalization is basically a whole new way for banks to recruit, organize, finance and monitor their work, which ultimately serves the best interest of customers and the company.

Fast, safe and secure digital payment solutions propel business growth by providing its target customers with a more seamless and efficient payment experience that naturally makes them rely on a business, thereby aligning the technique with a business’s growth ambitions. The digital payments landscape and their measurable transformation benefits enable financial organizations to best manage all customer interactions.

Additionally, front-to-back digitalization is a way for financial organizations to address different digitalization challenges while paving the way for successful scanning. This makes banking faster, simpler and more efficient for customers, thereby accelerating the return on investment for banks and other financial organizations.

2. Ensure a hassle-free payment experience for customers

Highly innovative front-end payment technology solutions ensure a seamless payment experience for customers and reduce fraudulent activities. Using digital payment solutions requires leveraging different technologies that encrypt and secure data, as well as multi-factor authentication that makes it difficult for fraudsters to launch scams.

Additionally, different types of digital payments, like virtual credit cards, offer only one payment to a single provider for a single amount, thereby protecting the user’s credit card from hacking.

Digital payment solutions can also help reduce waste and costs by reducing the use of paper checks for incoming and outgoing payments. Additionally, using checks can be costly for banks and other businesses, involving expenses such as printing, secure disposal, and postage. While digital payment methods help businesses save a lot of money, they also help customers save on high check processing fees as digital payment fees are comparatively lower per transaction.

When people work with businesses that accept digital payments, the savings they experience leads them to like those businesses, which automatically generates more revenue for those businesses, ultimately leading to growth.

Apart from being a green solution, few digital payment procedures do not even have associated costs or additional charges. Instead, there are cashback offers for users, which means increased usage of virtual credit cards, thereby generating recurring revenue for businesses on every bill they have to pay, thus leading to business growth in large scale.

3. Mitigate Payment Ecosystem Issues for Banks

Digital payment solutions solve some of the most critical issues facing the payment operations landscape of financial institutions and banks in today’s environment.

With more transparency into payment speed and status, banks can build customer loyalty, leading to exponential business growth. Seamless digital experiences for banking customers, especially those with time constraints, help businesses acquire and retain next-generation customers, like millennials and Gen Z.

Additionally, digital payment solutions support the growth of payment channels by reducing manual payment volumes in existing payment infrastructures. This further enhances the use of workflow platform that optimizes business operations without massive investment.

Different new ways of making digital payments help banks and other financial organizations reduce pressure on margins and costs, thus ensuring continuous improvement in costs and banking margins while providing cost competitiveness. AI and ML-powered digital payment solutions help speed up payment processing, reducing instances of manual queuing or payments arriving in the inquiry queue.

Additionally, by quickly resolving payment issues and investigations, digital payment solutions help banks save much of the money that would otherwise be spent on technology and bandwidth and maintain a strong investigation team. . This further helps banks rank higher in their CSAT or customer satisfaction scores, automatically leading to large-scale customer retention.

4. Increased transaction speed and real-time cash flow visibility

While conventional payment methods, like paper checks, can take days or even weeks to process, digital payments are instant. Since digital payments improve the speed of transactions, they can help businesses pay their bills on time and thus create a good impression among their customers. This promotes immediate business growth, with greater appreciation for a business through a fast payment service.

Digital payment solutions also help business leaders make quick decisions on hiring, investing and spending because they can generate revenue and expenses in real time. Digitized payments help businesses visualize cash flow in real time, as the account balance instantly reflects the change after a payment, with all currency conversions taking place right at the time of the transaction.

Another important benefit of digital payment solutions for businesses is increased accuracy and scalability. Since businesses only need to spend eight to ten hours per week processing and reconciling payments, this provides them with cost advantages while resulting in a high level of accuracy in all their transactions and the ability to develop their business.

5. Exclusive advantages of modern digital processing tools

Automated process mining tools help recognize anomalies in payment processing, further streamlining various business procedures. These include:

• Credit management: Nowadays, it is crucial for businesses to provide a seamless customer experience to all types of customers, whether it is a customer looking for a loan or someone who needs help in understanding the evolving market landscape. However, providing this experience requires effective procedures. Financial organizations can accelerate their credit processes and offer their customers a highly competitive credit journey by leveraging Celonis.
• Know your customer: KYC is essential to a company’s regulatory environment, but requires proper execution with little friction for customers. Businesses can still use Celonis insights to optimize their KYC procedures while ensuring they operate seamlessly and with the end-to-end customer lifecycle in mind.
• Payment processing: Fully automated payments improve efficiency and customer experience. Celonis understands and resolves payment failures to automate payment processing. All of this reduces liability, improves efficiency and makes customers happy.

Additionally, businesses can analyze exception handling and improve it appropriately to resolve any issues before customers feel the effect. Modern payment surveys improve payment orchestration and vital operational metrics that can impact customer experience. MI-based analytics and digital payment solutions simplify and complement key growth metrics, such as ADR or average days, arrears and quality.

Fully automated workflows and tasks and built-in checks and controls eliminate manual processing and mitigate risks. The highly innovative MI and digital dashboards are other digital payment governance tools that ensure complete transparency in digital payment processing. Thus, business measures and different business procedures improve.

Modern digital payment solutions and tools solve all payment-related problems and help businesses build customer loyalty at scale. The digitalization of payments therefore constitutes a revolutionary transformation for all companies that can lead to large-scale development.

The essential

So this is how the growth in digital payment transactions boost businesses. Remember that the global digital payments ecosystem is growing rapidly due to the

• government initiatives in different nations,
• increased use of smartphones and the Internet, and
• The widespread popularity of e-commerce

Such FinTech Software development solutions have completely revolutionized businesses by enabling them to provide supreme convenience to their customers, which has contributed to the wonderful growth of businesses across the world.

BoTree Technologies is a leading FinTech software development company.
Contact our experts to learn more about our Design for Cashless (DFC) methodology.