The Future of Processing Payments
When it comes to predicting the future of payment processing, you don’t need a crystal ball. There’s a more dependable means of clairvoyance: direct insight into consumer spending habits. Processing more than 2/3 of everyday spend in places like grocery stores and pharmacies, Vantiv has unmatched perspective into the not-so-dark-and-mysterious future of payment processing trends.
At the hub of the payment processing world, financial institutions are witnessing an unprecedented pace of change. As an increasing number of these institutions feel the pressure of industry regulations, reduced fees and revenue, and the encroachment of alternative banking providers, many regional banks and credit unions are going to be exploring ways to bolster their strained resources. With few opportunities for revenue replacement, one coping strategy will be to focus on cost reduction. However, a significant drawback to this solution is that it could squeeze an already overburdened staff. That’s the reality that FIs are facing these days – and it’s going to have a direct impact on the future services that FIs require from their processing solutions.
Also a contributing factor in the shifting processing payments landscape will be the developing spending habits of their cardholders. Now well into the advent of EMV chip card technology, consumers today are becoming better versed in credit and debit fraud prevention, heightening expectations on their issuing bank’s card securities. These “omniconsumers’” purchasing behaviors have expanded to include multiple transaction platforms, including mobile and wireless applications, which in turn demand safe and seamless processing that will stay in step with the latest advances of payment technologies.
Maintaining a solid understanding of these two major components will be critical for any financial institution vying for position in the market. Offering much more than hints at where and how their cardholders are using their purchasing power, institutions that have the total perspective of the transaction chain will get their own figurative crystal ball, indicting present trends and tipping them off to future opportunities for revenue growth by extending card activation and application.
Using this newfound insight, FIs will get the advantage of being able to create driven and focused marketing that speaks to the proven needs of their card members. By enticing customers to activate and increase their card usage, institutions stand to gain the full revenue potential and maximize their brand reach. Furthermore, the benefits provided by a knowledgeable payment processor can help ease the burn on staff and free up time and resources that can be focused on other important growth areas of the institution.
The more we know today, the better we can prepare for tomorrow. Choosing the right payments processor will indeed hold the key to an institution’s future for payment processing. Financial institutions that can determine and anticipate change – and use it to their advantage – are going to actively shape their own destinies and help influence the future of credit and debit card payment processing.