Think beyond the merchant: a statistical case for green payments
This article was originally published on the Lune blog.
Climate impact is a differentiator for payments companies.
Customers are looking for green payment options, which means that offering green payments as a value-added service enables payments companies to accelerate existing KPIs such as revenue growth for themselves, and for their merchants. And we have the research to prove it…
I’ve spent two months interviewing people building fast-growing payments companies — specifically ones that impact consumer experiences. I’ve become obsessed with understanding their pain points, commercial metrics, their brand beliefs, and their employee propositions.
To put it bluntly, I want to know: how do you make payments… sexy?
How do you get people to love and prefer a particular tr ansactional experience?
The results of my research have been revelatory, so I wanted to share the story. Here’s everything we’ve learned, including some astoundingly cool insights from a survey we conducted with 500 general consumers across the UK and Europe.
Payments companies struggle to differentiate, yet aspire for?loyalty
Payments companies are — to paraphrase their own words — totally undifferentiated. And yet, every single product manager or senior exec I spoke with hammered home one universal message: convert new customers, build loyalty, accelerate market share.
Strategically, this makes sense. Laser focus on a few commercial goals and results will follow. It’s no wonder, then, that the individuals we interviewed feel a collective lack of bandwidth (or reason) to think beyond the payments needs of the merchant.
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…but what do merchants care about?
Do merchants care about fast and easy payment experiences? Sky-high acceptance rates and effortless reconciliation? Yes, surely these things are integral to the foundations of a successful modern business. But few business owners feel passionate about starting their own business because their payments will be easy.
Merchants care about their customers.
Payments companies that fall short on serving the needs of the end user compromise their opportunity for market dominance, and even worse, position themselves on their back foot as a market lagger.
Customers want green products & services (but they don’t yet exist at?scale)
Neglecting the end-to-end customer experience means payments companies focus on an incomplete picture, and ultimately leave money on the table.
Now more than ever, businesses know that their customers care about impact through sustainability.
By offering responsible, or “green” payments as a value-added service to merchants, payments companies will accelerate existing KPIs such as revenue growth for themselves — and for their merchants.