BrazilPayment processing: Once a back-office function, now a strategic capability
The role of payment processing has undergone a significant transformation in the past few years. Once seen merely as a necessary cost centre, payment processing is increasingly recognised as a crucial strategic capability that can drive growth, enhance customer experiences, and provide a competitive edge, write Kirsten Hoornstra (PaymentGenes) and Rutger van Overbeek (BB Merchant Services).
Traditionally, payment processing has been viewed as a back-office function essential for completing transactions but offering little strategic value. Companies treated it as a cost to be minimised, focusing primarily on reducing transaction fees and maintaining essential operational efficiency.
Over the past decade, the landscape has shifted dramatically. Businesses now understand that payment processing is no longer just about handling transactions; it’s about leveraging payment systems to create seamless and engaging customer experiences, fitting with the company’s sales channels and business model, optimising operational efficiencies, and gaining a strategic advantage over competitors.
This shift is driven by several factors, including rapid technological advancements and heightened consumer expectations for fast and secure transactions. The complexities of operating in a global market and shifts in business models are clear business drivers. Sales via D2C, marketplaces and subscriptions cause businesses to rethink their payment strategy.
The benefits of viewing payment processing as a strategic capability
Businesses that adapt to these changes by integrating advanced payment solutions into their strategic frameworks are better positioned to thrive. Four main benefits of viewing payment processing as a strategic capability:
- Enhanced Customer Experience
Strategic payment processing enhances the customer experience by offering seamless, secure, and convenient payment options. This not only increases customer satisfaction but also drives repeat business and loyalty. - Operational Efficiency
By optimising payment processes and leveraging advanced technologies, businesses can streamline operations, reduce costs, manage vendors effectively, and improve overall efficiency. This enables companies to allocate resources more effectively and focus on core business activities. - Competitive Advantage
Businesses that treat payment processing as a strategic capability can differentiate themselves in the market. They can offer unique payment solutions that meet customer needs better than competitors, gaining a competitive edge. - Future Trends
Payment processing will continue to evolve with developments in identity verification, consumer data and alternative payment methods such as A2A and Open Banking. Businesses that stay ahead of these trends and continuously innovate their payment strategies will be well-positioned for future success.
