High-Performance Payments_ The Hidden Billion Dollar Opportunity

TL;DR

The report highlights the increase in falsely declined payments in the digital economies of the US, UK, France, and Germany, posing a challenge for merchants and emphasizing the need for optimized payment performance.

Transcript

thank you for joining us today I'm really delighted to be with Julie's Grace who is the head of research and editorial at checkout.com and we will be discussing about the potential of high performance payments this short and sweet session is really a preview of the upcoming second edition of checkouts survey based report in collaboration with Oxfor... Read More

Key Insights

• 😚 The increase in falsely declined payments poses a significant challenge for merchants, with over 50 billion lost in four countries in 2022 alone.
• 😵 The complexity of the market, driven by factors like regulatory changes, cross-border transactions, and the growth of the digital economy, contributes to the rise in false declines.
• ☠️ Acceptance rates emerge as a crucial KPI for merchants, impacting customer acquisition and competitive advantage.
• 👨‍💼 Payment performance is not solely a financial concern but also a cultural and customer experience issue that can affect a business's reputation and loyalty.
• ❓ Understanding the nuances of payment acceptance, including local payment methods and regional variations, is crucial for optimizing payment performance.
• 😥 Collaboration with payment providers and leveraging AI and machine learning solutions can address the pain points and complexities associated with payment optimization.
• 👨‍💼 Merchants need to focus on aligning payment strategies with business objectives, ensuring control, visibility, and access to data for informed decision-making.

Questions & Answers

Q: What factors contributed to the significant increase in falsely declined payments in the past three years?

While market growth played a role, the complexity of the market, including more players, regulatory changes, and cross-border transactions, likely contributed to the increase in false declines.

Q: What should be the number one KPI monitored by the C-suite to improve payment performance?

Acceptance rates are crucial as they indicate how successful payments are in going through the payment process, impacting customer acquisition and loyalty.

Q: What are the blind spots merchants should look for in payment optimization?

Merchants should focus on understanding the complexity of their payment landscape, ensuring they have control over payments, visibility, and access to data. The choice of a payment provider with expertise in aligning business objectives is essential.

Q: How does payment performance impact the culture of a business?

Payment performance is not only a financial concern but also an emotive issue that affects customer experience. Cultural nuances, preferences, and the need for personalized payment experiences should be considered in a business's payment strategy to enhance customer loyalty.

Summary & Key Takeaways

• Despite increased awareness of the value of payments in optimizing revenue, falsely declined payments in 2022 resulted in a loss of over 50 billion in the digital economies of four countries.

• The growth in false declines is not solely attributed to the increase in digital payments but also to the complexity of the market, including more players, regulatory changes, and cross-border transactions.

• Acceptance rates emerged as a key performance indicator (KPI) for businesses, impacting customer acquisition and competitive advantage.