Payments post-covid19: what has changed?

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By Mariana Almeida Marques

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The 2020 pandemic has shaken up every industry- the payments industry included. It also changed customer behaviour drastically, and forced companies to respond. Convenience, for instance, became a key factor for customer satisfaction across any sector. In this article, we discuss how Covid-19 has changed the payments industry, and what companies can do to adapt to these changes.

 

Online payments

The most immediate change caused by the pandemic was the reduction in spending. Naturally, lockdowns didn’t permit consumers to buy in-store, and consumers became increasingly more self-aware of their spending. Whilst payments were already slowing moving to online before the pandemic, 2020 has seen a steep rise in online payments across all industries. And the tech-savvy younger generations weren’t the only ones making purchases online: older generations followed this movement too. The overall ecommerce sector boomed greatly, six times more than the annualised growth rate of 2019 (McKinsey report). The pandemic has also popularised debit cards, which were generally used for smaller purchases.

[/et_pb_text]online payments grew significantly during the pandemic.[et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

Contactless payments

Contactless payments grew by 12% in 2020, with six out of ten people using this payment method in the UK. This accounted for 27% of all UK payments (UK Finance report). Following this rise, the spending limit for contactless payments was adjusted from £30 to £45 in April 2020. More recently, in October 2021, the spending limit increased to £100. Contactless payments provide customers the convenience and speed they want when making purchases. The pandemic accelerated their usage as consumers were encouraged to reduce contact with any surfaces. 88% of debit cards and 81% of credit cards are now contactless.

 

Cross-border payments

Another payment type that has seen increasing adoption is cross-border payments. National lockdowns have put individuals and businesses on hold. Working from home is now a widely popular approach, and it has enabled people to live anywhere. With employees and customers spread across the globe, cross-border payments became highly popular. PayPal, a widely known digital wallet, reported double-digits growth on cross-border transactions in the second half of 2020 (McKinsey report). The pressure is on for businesses to deliver cross-border payments as fast and seamlessly as any other payment type.

 

Increased security

The growth of digital payments prompted a surge in online fraud. Fraud risks include data theft, but also scams that target mainly those who are new to electronic payments. In fact, in the first four months of 2020, there were more than 900.000 scam messages related to coronavirus (Interpol report). Payment regulations are constantly being updated to keep up with the increasing fraud risks, and it has now been more important than ever to invest in the best security tools to keep customers safe. Businesses must now also implement SCA (Strong Customer Authentication) measures as part of PSD2 regulations.

[/et_pb_text]The pandemic and rise of online payments required strong security tools.[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” hover_enabled=”0″ inline_fonts=”Lato” sticky_enabled=”0″]

 

Adapting to changes in the payments industry

The year of 2020 has shown that customer demand can shift quickly, so it is important to adjust to customer needs just as fast. Having the ability to adapt to changes is now the most determining factor of success. Whilst some companies have access to state-of-the-art technology and are therefore more flexible in enhancing products or developing new services, other companies are on a totally different boat. The insurance sector, for instance, is a traditional industry with decades-old infrastructure that has never changed. These incompatibilities between new technology and old systems hinder their ability to innovate.

 

How Imburse can help

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

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How to prevent failed payments

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By Mariana Almeida Marques

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An enjoyable payment experience ends with a successful transaction. Unfortunately, declined payments are not a thing of the past, and they can very much deter customers from coming back to your website. In fact, research shows that 62% of the customers that experienced a failed transaction won’t return to the same website again (Finance Magnates report). In this article, we discuss some of the reasons why payments get declined and what you can do to avoid failed payments.

Why are payments declined?

There are various reasons why payments fail. On the customer side, a declined payment may be due to a mistake in the bank details or billing address details they inserted, insufficient balance of funds to cover the purchase or even a suspended/blocked account. Merchants may also block the payment manually, or the transaction may be flagged by the bank should there be any suspicion of potential fraud. From a technical standpoint, the payment gateway may not accept the payment method that the customer used, or there could be network infrastructural issues.

 

How to prevent transaction failure

Whilst online payment failure is often times inevitable, there are certain factors that can help prevent payments from being declined. Below we list some of the most common:

 

Opt for smart payment routing

In traditional payment routing, each gateway connects to one single processor. This means that if your transaction details are routed to that processor and the payment fails, there is no way to salvage that. However, in smart routing, the transaction is sent to the processor that is most likely to settle that payment. This means that gateways can connect to multiple processors and, once they receive a transaction, they will send it to the most appropriate processor. Even if this transaction fails, the transaction is rerouted to the next best processor. Therefore, the chances of payment failure are much lower.

[/et_pb_text]smart routing can help prevent failed payments.[et_pb_text admin_label=”Text” _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

Maximize your offer of payment methods

Offering a wide range of payment methods enables you to give your customers the option to pay in whichever way they prefer. This could include digital wallets, alternative payment methods or bank transfers, amongst others. The more options you give to your customers, the more customers you will attract and retain. Even though this doesn’t necessarily contribute to preventing failed payments, it plays a crucial role in preventing checkout abandonment, ensuring customer satisfaction and increasing profit.

 

Invest in security tools

Having strong security measures in place is not only important for regulatory compliance reasons, but to protect your customers and your company. Therefore, security is of utmost importance and should never be compromised. Make sure that the providers you connect to are PCI-compliant, and that all the other security protocols are being used (such as KYC). However, authentication may also generate false positives, flag certain accounts that aren’t actually fraudulent and decline payments for “no reason”. Adopting 3D Secure 2.0 technology enables you to automate a lot of the authentication process, maximise authentication methods and create a more frictionless payment experience for your customers.

[/et_pb_text]security tools can help prevent failed payments.[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” hover_enabled=”0″ inline_fonts=”Lato” sticky_enabled=”0″]

 

Tokenisation

Payments may fail due to expired cards. This can be a huge pain for businesses that take recurring payments and require updated customer details to collect funds. However, it isn’t feasible to manually request customers to change their details online, and to have to rely on this manual work on an ongoing basis. Tokenisation is the replacement of actual bank details to a set of randomly generated numbers that represent the card and are safely stored within a token vault. As opposed to card details, the token has no expiry date, so it reduces the risk of payment failure.  Tokenisation is also a crucial security tool that prevents customers from having their details stolen when paying online, as fraudsters could never have access to their actual bank details).

 

How Imburse can help

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

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What is an E-Wallet?

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By Mariana Almeida Marques

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In 2020, there were 8.3 million mobile payment users in the UK (Statista report), and this number is predicted to continue to grow steeply. Whilst this may not be news to many, digital wallets are an increasingly popular alternative to traditional debit or credit cards. In this article, we discuss what are e-wallets, their advantages and some of the types of e-wallets available.

 

Definition of e-wallet

An E-wallet, or digital wallet, is a software-based system that stores bank details and enables users to make payments through their mobile phones. Rather than carrying a physical wallet with all your debit and credit cards in it, you can add all of your current bank accounts’ details to your digital wallet and use them whenever you please, as long as you have your phone with you. You can also make payments with your phone using a digital wallet: whenever you reach the checkout page, you should be able to see which types of digital wallets that company supports, and make a payment through one single click.

Mobile payments made through a digital wallet are contactless and use Near-Field Communication technology to connect to the card reader. Digital wallets can also be used to store passwords and vouchers from other websites, such as coffee subscriptions or other memberships. In this case, users would usually have a QR code saved in their digital wallet, that they could then use to connect to the shop’s card reader. For debit and credit cards, no QR code is needed, so you can simply select the card you want to use virtually and hold your phone near the card reader.

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There are also other electronic devices in which digital wallets can be used, such as smartwatches and tablets. In the UK, customers can use their digital wallets for contactless payments of up to £45 per purchase. For any amount over £45, customers will simply be required to type in their password. 

 

Advantages of e-wallets/digital wallets

Convenience is the most obvious advantage of digital wallets, and something that consumers are very much on the lookout for. Digital wallets enable mobile phone users to use this device to make payments anywhere, avoiding the need to bring their physical wallet with them or to insert their card’s password. This also saves time and stress, as some customers may forget their wallet at home, but it is unlikely they will forget their mobile phones.  

They are also a safe way to pay, as all information stored in digital wallets is encrypted. This means that your actual numbers aren’t transmitted along the way when making a payment, as they are replaced by a series of random numbers that represent your card but are impossible to link back to your account. Encryption is a common tool used to improve payment security online. Your bank details are also safe on your phone and are not displayed anywhere so, if you were to lose your phone, no one would be able to access your details. Equally, all mobile transactions are protected by the same type of security and rules as the physical cards.

For businesses, supporting mobile payments may help to reduce checkout abandonment and to increase sales. This is because, essentially, merchants are giving their customers more payment options to choose from, so customers are more likely to find the payment method they prefer. 

[/et_pb_text]E-wallets are convenient and fast.[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” hover_enabled=”0″ inline_fonts=”Lato” sticky_enabled=”0″]

 

Types of E-wallets

The options of e-wallets available to you will depend on your phone’s brand. Apple Pay is available for all iOS users, for instance, whereas Samsung users can access Samsung Pay and other Android users can access Google Pay. Apple Pay lets you pay in over 60 countries, and Samsung Pay lets you pay in at least 24 countries.

Though digital wallets vary in smaller details such as the countries they support, they all have the same main functionality of enabling users to pay with their phones. In the US, Google Pay users can also send money between friends through this digital wallet. Other popular digital wallets across the globe include Alipay and WeChat (only available for users in China), Venmo (US-based), Cash App, PayPal and Zelle.

 

How Imburse can help 

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

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What are alternative payment methods?

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By Mariana Almeida Marques

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Long gone are the days where debit and credit card where the only payment methods used by customers to make a purchase. The digitalisation in payments has seen the rise of alternative payment methods which offer the level of convenience, speed and ease that customers are looking for. In this article, we explore what are alternative payment methods, their popularity and the benefits of supporting alternative payment methods for your business.

 

What are alternative payment methods (APMs)?

The designation of “alternative payment methods” can be quite subjective. However, it tends to include all payment methods that aren’t cash or a majorly used and more traditional debit/credit card. For instance, we are experiencing the rise of digital wallets, that allow users to make NFC contactless payments using their mobile devices. Vouchers and more niche card payment methods (local brands) are also included in the list.

Note that “alternative” doesn’t necessarily mean that they are used by few. In fact, alternative payment methods are becoming more easily adopted across the globe. In countries like Germany, for instance, 57% of residents actually prefer using PayPal for online shopping (Checkout.com report).

 

Types of alternative payment methods

Digital wallets– a digital wallet or e-wallet is a software application that stores bank details and enables users to make payments through their mobile phones. Customer can use their digital wallet to pay for items online or in-store via contactless. Some of the most popular digital wallets include PayPal Apple Pay, Google Pay, Samsung Pay, Alipay and WeChat (the latest two only available in China).

E-invoices- Invoices are a request for payment that companies action to their customers once a service/product is ordered. Rather than receiving a physical or PDF invoice via email, customers may be sent an electronical invoice that they can access directly. Merchants are able to store and manage their invoices all electronically.

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Vouchers/Pre-paid cards– Customers can make purchases using vouchers or cards that they have previously topped up. The voucher or prepaid card holds a certain amount of money that customers can use to pay for goods in selected stores. Some prepaid cards allow usage in various stores, whilst others only work for individual brands (e.g., an Amazon gift card has to be used on Amazon).

Bank transfer- customers can pay for items using their online banking app instead of a physical debit/credit card. Bank transfers may be used for online purchases where customers are redirected to the bank’s page to proceed with the payment.

BNPL– BNPL stands for “Buy Now, Pay Later” and it is a service that enables customers to pay in instalments. There are various companies providing this service, one of the most popular being Swedish company Klarna. BNPL providers divide the costs of a purchase into, for instance, three instalments and customers must pay it over a set period of time.

Crypto wallets- Much like a digital wallet, crypto wallets hold the user’s cryptocurrencies and can be used to pay at specific stores. However, their usage is still very limited.

 

Advantages of alternative payment methods

Alternative payment methods are becoming hugely popular across the globe, and a common preference amongst customers. In Europe, for instance, it was reported that between 25 and 50% of residents where already using some type of APM in 2018 (McKinsey study). In the APAC region, more than half of the population use APMs and in North America, the percentages are similar.

[/et_pb_text]E-wallets are convenient and fast.[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” hover_enabled=”0″ inline_fonts=”Lato” sticky_enabled=”0″]

There is now a wide base of customers who choose to pay with APM, and this base is likely to grow over the years. Therefore, it is crucial for companies to listen to their customers and adapt to their preferences. Offering APMs enables businesses to reach more customers, improve conversion rates, customer service and satisfaction and, ultimately, optimise profit.

 

How Imburse can help

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

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What is point-to-point encryption (P2PE)?

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By Mariana Almeida Marques

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Ensuring payment security is key in delivering an excellent payment experience to customers. Point-to-point encryption is one of the most popular tools used to protect customers’ details during the payment process. In this article, we explain what is P2PE, how it works and the advantages of implementing it in your company.

 

Meaning of point-to-point encryption

Point-to-point encryption, or P2PE, is a software tool that encrypts your customers’ data from the beginning of the payment process (also called point of capture, when your customer inserts their details into a card reader) all the way until the payment is processed. Your customers’ data is completely safe whenever they make a payment, as it is impossible to revert the encryption back to the original bank details during the payment process.

Encryption is the process of replacing real card details into a “random” numerical code that is used to make payments online. Because your real numbers aren’t shared with any party during the process, it effectively protects you from having your details stolen. Note that there are differences between encryption and tokenisation, mainly in the way that these numerical codes are formed. 

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Point-to-point encryption (P2PE) versus end-to-end encryption (E2EE)

Both of these designations look similar at a glance, so it is unsurprising that they may cause a lot of confusion even within the Financial Services industry. However, they have small technical differences. Firstly, a P2PE solution can be fully certified by the PCI DSS standard, which will reduce the scope of regulations that merchants need to comply to. E2EE, on the other hand, is not certified, so there are no specific standards to meet. However, these solutions are equally secure.

From a technical standpoint, P2PE encrypts the data from a point-of-sale terminal to the payment processor and avoids using third-parties in the middle. This means that your data goes directly from one point to the other, and it isn’t accessible to other companies. Once it reaches the payment processor, the data is decrypted and sent to the issuing bank to be approved. Merchants have no power over this data and cannot access the unlock key to decodify the data. The payment processor (a third-party) holds responsibility for handling the data and ensuring security.

E2EE also offers encryption from, literally, the end to end of the payment process. However, there could be multiple systems in between. Because there isn’t a specific standard to meet (unlike the P2PE, which has its own rules made by the PCI DSS standard), merchants could unlock this data during the process. Third-parties are not responsible for securing the data either. Instead, merchants hold this responsibility.

[/et_pb_text]P2PE encrypts your customers data and is aligned with PCI requirements.[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” hover_enabled=”0″ inline_fonts=”Lato” sticky_enabled=”0″]

 

Why should my business have P2PE?

A great benefit of P2PE is that it helps business to comply with the PCI DSS standard and reduces the amount of security efforts that companies need to put in place. This standard is composed by a set of regulations and ensures that any business that stores, processes or transmits card information provides maximum security to their customers. In order to meet the PCI standard, businesses must complete a Self-Assessment Questionnaire (SAQ). However, there is a specific and simpler questionnaire for companies that have P2PE installed. Note that before deploying a P2PE solution, it needs to be PCI-approved.

Besides reducing the PCI-compliance efforts, P2PE offers the payment security that your customers are looking for. As payment fraud rises, customers are increasingly hesitant to share their bank details online. Therefore, it is important that your customers know that you are doing everything you can to protect them and their details by having strong security tools in place.

 

How Imburse can help

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

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How to optimize your payments system

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By Mariana Almeida Marques

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The payments industry is going through an exciting and long-lasting transformation, as new technologies, providers and tools emerge. Whilst that is great news for tech-savvy customers, it imposes challenges on traditional finance and insurance companies that simply aren’t build on modern systems. Taking the challenging times ahead as an opportunity for long-term improvement is the way to go- that’s why optimizing your payments system is a crucial part of not just surviving, but thriving in this complex, competitive and disruptive industry.  

In this article, we will explore some of the ways in which you can optimise your payments system to meet and exceed customer expectations, as well as to future-proof your system and operations for years to come. Imburse enables you to do all of the below, by offering you connectivity to the entire payments ecosystem with no individual integrations needed from your side. You connect to us, and we connect you to the payments world.

 

Maximize payment methods

In order to meet customer demand, continue to exceed their expectations and even reach new customer bases, companies must now offer a considerable variety of payment options. Personalisation has become a priority for insurers and financial services, allowing for a higher level of customer engagement and retention.

Therefore, it is crucial that you allow your customers to pay in their preferred payment method, both to improve customer retention and to boost profit. Besides the traditional debit or credit card, customers may prefer to use mobile wallets such as Apple Pay, Google Pay and others or alternative methods such as PayPal and Amazon Payments. You must also ensure that the PSPs you choose to connect to support the currency of the countries you operate in and can connect to their local banks.

[/et_pb_text]Maximising payment methods can increase customer satisfaction, reach and retention.[et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

Invest in fraud prevention

Every business wants to protect their customers, but not every business knows how to do so. That is why it is important to find PSPs that offer strong fraud prevention and risk management tools. Equally important, look for PSPs that are certified and compliant with all the key regulations, such as PSD2. Imburse enables you to connect to any PSPs you want, in any market, so you have full flexibility in choosing the most trusted providers available. The Imburse platform also has all the key industry certifications and governance in place, so you are safe and protected from day one.  

 

Streamline your payment operations

Streamlining payment operations seems like a very broad task, but it can be divided into actionable goals in areas such as reconciliation and analytics. Auto-reconciliation, for instance, allows you a huge amount of time and resources, and even reduces the potential risk for errors of manual reconciliation.

Equally, have a single reporting source that combines the analytics from all your providers will allow you to have clearer and instant visibility into your customers’ transactions, so that you can more easily take that data and use it to improve the business and make informed decisions. Streamlining your payment operations allows you to save time, costs and resources, making it easier for your teams to leverage the payment operations.

[/et_pb_text]payment processors are key to every business.[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” hover_enabled=”0″ inline_fonts=”Lato” sticky_enabled=”0″]

 

How Imburse can help

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

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Why customer payment experience matters

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By Mariana Almeida Marques

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Payments represent the ultimate moment of truth for customers. No matter how great your product or service is, a poor checkout experience can really deter your customers from continuing the purchase. Thanks to all the digital developments in the payments arena, customers now require a seamless, fast and user-friendly experience, and they are quick to look out for other companies if they aren’t offered this type of service. In this article, we will discuss the importance of customer payment experience and how optimising your payment system can help you attract more customers and improve customer satisfaction.

 

Boost customer trust

There are always risks associated with sharing bank details online. Initiating a payment through a company’s page requires a lot of trust from the customer side, so it is an extremely important area to nail. Companies need to ensure that customers feel safe sharing their details. They can do so by partnering with providers that offer strong security tools and have SSL technology that encrypts all payment data. If a website uses SSL encryption, customers will be able to see a padlock symbol before the website’s URL. This is an easy way to tell your customers that they can trust you with their data, and to make them feel safer when making a payment.

[/et_pb_text]SSL encryption is shown as a padlock before the website's URL.[et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

Enhance personalisation

Customers want websites that are user-friendly and easy to navigate. Amongst other aspects, they want to be able to quickly access any information about your product, and to easily reach a member of your team should they require assistance. The focus on user experience and hyper personalization doesn’t end on the website itself- the payments page should be tailored to your customers too. Companies can better tailor their payments page by providing a large number of local and international payment methods. This way, customers have an array of payment options to choose from, and are more likely to be able to pay in their preferred method.

 

Improve transparency

Very much in line with the access to information, customers are becoming increasingly inquisitive when it comes to companies’ transparency in the services and purchasing experience they provide. It is important to make customers aware of all the payment services you offer, such as range of payment methods, return/cancelation policies and fees. Not only that, but to make your checkout process as clear and simple as possible. If the checkout process is complex and it takes too much time to initiate a payment, customers are likely to abandon your checkout page and look for companies that offer simpler processes. Transparency and clarity in the payment process show your customers that you are a reliable provider, and makes them more likely to want to buy from you in the future.

[/et_pb_text]Improving transparency with your customers can increase brand trust.[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” hover_enabled=”0″ inline_fonts=”Lato” sticky_enabled=”0″]

 

The importance of payment experience

The few minutes that your customers spend initiating a payment can actually have a tremendous influence on their opinions about your company. In fact, ecommerce brands alone are estimated to lose $18 billion every year just on checkout abandonment (Forrester report). But the ecommerce industry isn’t the only one suffering the painful consequences of checkout abandonment: poor payment experiences are a detrimental factor of success/failure in any industry. Particularly in times when customers have a lot of products and companies to choose from, customer service is key in building and maintaining your customers’ loyalty to the brand.

 

How Imburse can help

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

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What is KYC in banking?

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By Mariana Almeida Marques

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KYC, or Know Your Customer is a much used phrase within the Financial Services industry. It relates to AML and security rules that all banks and financial institutions must follow in order to prevent fraud and protect their customers. In this article, we will explain KYC and how it works in the context of banking.

 

What does KYC mean?

Know Your Customer represents a set of standards that all financial services and investment companies and insurers must use to verify the identity of their customers. Essentially, KYC applies to any company that holds money. KYC is part of the onboarding process of any new clients and enables banks and other financial institutions to not only prevent fraud and money laundering within their own company, but also to comply with the ever-developing AML regulations.  

 

What are the KYC obligations? 

KYC requires banks and financial institutions to perform CDD (Customer Due Diligence) on every new customer they onboard (every time they open a new “business relationship”). CDD is also necessary for any payment worth €10,000 or more, according to the latest AML rules. Essentially, CDD englobes verifying your customer’s identity through official documents such as passports, bank statements or utility bills. These documents can be used to match important information such as facial recognition, full name, nationality, address and date of birth.

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In some situations, banks also need to verify the beneficial owner, either because somebody is acting on behalf of another person or somebody owns at least 25% equity in a company. Equally, if at any point banks suspect any customer or transaction, they are obliged to perform CDD. Banks must also keep updated with changes in their customers’ personal circumstances, whether that be a change in the type of business activity or in the ownership of the business. Note that “customers” can refer to individual persons or organisations.

Banks and financial institutions must perform enhanced Customer Due Diligence if the customer involved is a “politically exposed person”, such as a member of parliament, head of state or government, or a minister and their relatives/associates. They may also perform financial sanction checks to determine if an individual is or has been excluded or prohibited from certain industries or activities.

In short, banks must obtain enough information from their customers to not only verify their identity but also analyse the risks of onboarding them. They can do so by understand where the customers’ funds come from and what type of business activity they plan to do with the bank.

 

What happens if banks don’t comply with KYC?

Failure in complying with KYC obligations results in banks having to pay heavy penalties. Some of the most known cases of failing to comply with KYC include financial institutions such as HSBC, which suffered a penalty of $1.92 billion, and BNP Paribas, which had a penalty of $8.9 billion. Most banks face smaller fees, as these depend on the severity of the crime. Banks are not only faced with high fees, but also with serious damages to their reputation. Naturally, no customer wants to put their money in a bank that is known to have accepted money laundering and fraudulent activities.

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How Imburse can help

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

 

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