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Time for Digital Embrace: Understanding the Need for Digital Transformation in Payments

May 19, 2022


Digital Transformation in Payments

The term “digital transformation” has been doing the rounds for a long time now, but what does digital transformation for payments really mean? Let us find out in this article.

Living in the age of digital payments; there is no denying that all these instant payment transactions have already established themselves as a viable alternative to card payment systems. Today, payment organizations are more interested in creating an ecosystem that will improve the customer experience to ensure that they return. According to one report, 89% of businesses have already implemented digital-first business planning.

Although most businesses have adopted digital payments and transactions, others can update their existing systems to meet this requirement. Internal operations could also be improved to enable faster, more secure, and frictionless payments.

Issues Associated with Digital Transformation

Although digital payments are fast and secure, there are specific issues that digital transformation has to face. To begin with, digital transformation strategies require proper planning and advanced perspective, which might be missing in a few organizations. Besides, the change needs to be reflected in the organization’s entire hierarchy, which may be a time-consuming process.

Payment organizations are also under immense pressure—organizations are expected to react quickly to what’s happening around them, face the current challenges, and be ready for future obstacles.

Another consideration is the competitive industry—now because the FinTech industries are flooded with a plethora of digital payment solutions, payment organizations must remain distinct in order to retain and attract more customers. The goal should be to develop products and services that benefit customers.

As a result, digital transformation requires heavy investment, advanced technologies, modified internal operations, and better strategies to get over these issues. The final result is value-adding products and services that could easily meet customer expectations.

How Can Digital Transformation Improve Customer Experience?

Customer experience can drive payment transformation. Certain features, such as real-time alerts, security features, biometrics, real-time payments, and so on, pique the interest of customers looking for technologically advanced payment solutions.

This underlying push toward digital transformation (DX) is significantly tied to customer experience:

  • 93% of customers that receive excellent customer service are likely to make repeat purchases with those companies
  • 87% of buyers in 2021 said they’d pay more for a better B2B experience
  • 73% of consumers say they love a company having excellent customer service
  • 94% of customers are more likely to purchase from brands that offer complete transparency
  • 54% of all consumers say they have higher customer service expectations than they did just one year ago

Payment organizations need digital transformation because it enables them to achieve better operational efficiency and performance through a customer-centric approach and byproducts.

By customer-centric, we mean not just innovative products and services but also an overall improvement in the business model and workforce culture. An innovative approach will help payment organizations strategize digital transformation needs toward a better customer experience.

Cloud System as a Part of Digital Transformation

Many businesses and organizations have turned to the cloud for their operations, and it is a good decision. Because cloud services are accessible from anywhere and at any time, people don’t have to worry about relying on physical spaces anymore, this is also true for digital transformation needs.

Both payments and the large FinTech space have embraced global cloud computing. With cloud systems, companies can streamline their offerings and have faster payments and better innovations. Besides, there is a better scope for security, privacy, fraud detection, and risk management. Earlier, legacy systems were used in digital payments, and these were more prone to security breaching and risks, but with the introduction of the cloud for payment organizations, the digital payment scenario has evolved for the better.

Payments and transactions through digital transformation help companies enhance their offerings and let them connect with their audiences better. And with the integration of cloud-enabled systems, the processes have become more advanced and risk-free.

Talk to our team to get an in-depth understanding of how digital transformation can help your business.

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