Traditional payments organizations have new competition. It’s not just Square and Stripe, it’s companies like Shopify and PayPal’s Business in a Box that provide a full suite of offerings on top of payment processing. Although merchants still require payments to do business, today it seems more like an add-on to a full suite of product offerings rather than the core piece. For many payment service providers (PSPs), how each chooses to build out this suite of product offerings from the foundation of payments processing has become their key differentiator and competitive edge.
Payment product packages have evolved
Merchants are now not only choosing who to do business with based on which terminal and point of sale (POS) to have in their shop, they’re choosing their service provider based on what other services they can offer. Whether it’s an accounting add on, reporting capabilities, or inventory management, PSPs have to offer more to remain competitive.
This concept isn’t new to ISOs who have been forging partnerships and mergers throughout the years to deliver the most extensive product offerings to their merchants as possible by leveraging relationships with different acquirers, processors, and gateways. What’s different now is the speed at which it’s happening. Technology companies are developing new solutions and customer friendly experiences faster than traditional PSPs can keep up with. One way to address this issue and compete against these new competitors is to deliver delightful customer experiences and increase efficiency at scale.
Where to focus efficiency
By automating as many processes as possible, PSPs can spend their money developing innovative and diverse product offerings for their customers. The merchant onboarding process is one of the best places to start because it also achieves an improved customer experience. Making application forms digital with auto-verified fields eliminates back-and-forth between the customer and the sales or middle office teams. This, and using digital signature, allows the application to enter the back-office for processing faster than before, so Sales teams can focus on selling, not paperwork. Automating the underwriting process expedites the approval for merchants to process payments.
Automating the application form, underwriting, and other onboarding processes allows PSPs to be lean in this area while focusing more resources on product development. This is important not only to compete with new service providers’ vast array of product offerings, but also delivers a delightful customer experience. The faster the merchant gets approved, the faster they can start processing payments, and the faster the PSP can make a return on their automation investment to put toward other projects.
To learn more about how customer onboarding can increase efficiency and processing volume, read our ISO’s Guide to Payfac-Like Customer Experiences.