Procuring a new payment platform is a complicated process with many factors to consider. To make the best decision, we recommend a value-based approach—treating the project as an investment and selecting the platform that delivers the highest Return on Investment (ROI). In this blog post, we explore five key areas where choosing an efficient payment provider can have a significant impact, followed by a simple business case framework to help you quantify potential savings.
One of the most significant impacts of an efficient payment provider is on customer retention. A streamlined onboarding process for automated payment methods, such as direct debit, encourages more customers to opt in. Research shows that customers using automated payments tend to stay 25% longer compared to those using manual invoice payments. This results in higher customer lifetime value and improved revenue stability.
Automated payment methods have a much higher success rate than invoices or manual bank transfers. Customers who enroll in direct debit or similar payment methods experience fewer payment failures due to late payments, incorrect details, or forgotten invoices. This translates to fewer missed payments and a more predictable cash flow for businesses.
Handling invoice payments manually involves substantial administrative effort and costs. Issues like late payments, payment mismatches, overpayments, and underpayments require additional time-consuming interventions. An efficient payment platform can automate these processes, reducing administrative costs significantly.
Consumers of today expect digital, seamless experiences. A payment process that is intuitive, secure, and quick enhances customer satisfaction and strengthens your brand's reputation. By offering modern, automated payment solutions, your business positions itself as forward-thinking and customer-centric, which can contribute to long-term loyalty and positive word-of-mouth.
Providing multiple payment options at the point of sale increases conversion rates. Customers have different preferences when it comes to payments, and accommodating those preferences reduces drop-offs during checkout. A payment platform that supports various automated payment methods ensures a smoother customer journey and higher acquisition rates.
To determine the ROI of switching to an efficient payment provider, businesses can evaluate key financial metrics based on the potential benefits outlined above. Consider the following:
Most businesses find that investing in a payment platform yields 5 to 10 times the ongoing return compared to the platform's cost.
By evaluating these factors, businesses can make a data-driven decision when selecting a payment provider. If you would like assistance in assessing your potential savings and optimizing your payment flows, feel free to reach out to Waytobill for expert guidance.