How to Future-Proof Your Payments Infrastructure

What can you do to scale your existing payments structure?

Have you ever visited a psychic or had someone use tarot cards to predict your future? Whether you are a believer or a skeptic of the supernatural, you can’t deny that there is something alluring about knowing what the future could hold for you. While the debate continues for whether people can truly predict the future, that does not mean that you cannot leverage processes and solutions currently available to ensure you are on the path that you want to be on. The same mindset can be applied to your existing payments technology at your business. If your business is stuck in the past and/or you have a team that is either apathetic or unwilling to adopt new payment methods, then your organization will suffer the ramifications in the long-run. And you don’t need a psychic or tarot cards to predict that.

Luckily, you do not need a crystal ball to show you how to scale your existing payment structure. There are some steps you can take that will benefit both your business and customers.

Here are 5 steps you can take to future-proof your payments infrastructure.

Step 1: Move Away From Paper-Based Methods of Handling Transactions

With most people checking their phones every 12 minutes, it should be no surprise that customers want and expect convenience, simplicity, and speed in their day-to-day tasks. One of those everyday tasks is making a payment. Paper credit card authorization forms are still a common way to collect payments, but in today’s smart-phone driven world, your business needs to digitize them if you want to make it convenient and easy for your customers to pay. Clinging to the old paper-based way of collecting credit card authorization forms will only continue to slow down how long it takes for your team to process payments. Nowadays, it is more disruptive for customers to have to print and scan an authorization form back to your business. It is also an inconvenience for businesses because they must take additional steps to ensure the paper credit card authorization forms are secure and only authorized people have access to it and maintain a log of who has access. These manual processes widen PCI scope at your company because there is more human exposure to the credit card data.

Did you know? You can fully digitize credit card authorization forms. This is a quicker, more secure, and PCI-compliant way rather than sending out paper forms that customers would have to print, fill out and sign, and then fax it back to you. When you eliminate those types of manual tasks, the turnaround time to receive a payment increases. And you are providing your customers a seamless way to take care of a normal task.

Step 2: Consider Offering a Subscription-Based Pricing Model and/or Alternative Payment Methods

Subscription-based pricing was pioneered by the magazine and newspaper industries. However, with the emergence of SaaS companies, Zuora’s Founder and CEO Tien Tzuo saw a growing movement that he coined the “Subscription Economy” which will only continue to gain popularity in the years to come. According to Gartner, by 2020, new software vendors and 80% of existing software vendors will offer subscription-based business models.

A pricing model does not solely define a business, however, if your business does not have flexibility in the types of payment methods that are offered, then you are at a disadvantage. A subscription model has value for both your business and customers. For businesses, it provides predictable cash flows, increases your customer base, and builds brand loyalty overtime. For customers, a subscription model offers them convenience. It adds simplicity to paying since it is recurring, and the amount is the same, so they can better manage their expenses.

If a subscription model is not an appropriate fit for your business, then consider offering alternative payment options such as digital wallets, ACH, or bank transfers. Both digital wallets and bank transfers are predicted to become the top two popular payments methods globally by 2021. These payment methods can be handled using smart phones making it easy for your customers to pay while they are on the go.

Transitioning to a subscription model does not have to occur overnight. It can be a gradual transition where customers are eased into it. You can keep your existing payment structure but offer this option and demonstrate the value that comes with moving to that option instead.

Step 3: Do Away with Homegrown Systems

Thanks to the power of mobility, we are living in a convenience-driven culture, but some people might admit that they are still creatures of habit. There are tasks that you continue doing simply because it is a habit, even if it is inefficient. However, your reasons for not finding a better method could be attributed to the process of searching for a new solution or just not having buy-in. The same can be said for your existing payments infrastructure. If your business is using various disjointed systems to get documents signed and collect credit card information, then it is a loss in productivity for your team. This was a challenge that the team at Millennium Systems International had experienced. Prior to using Zuora and Sertifi, their team was using a variety of homegrown and third-party systems to manage the customer acquisition process (executing agreements) and to administer the payment activity. This process lacked financial controls, caused delays in the acquisition process, and disrupted the on-boarding process. “There was a significant time lapse between acquisition and the commencement of service delivery which resulted in a poor customer experience (first experience more importantly),” said Millennium Systems International’s Chief Operating Officer Matthew Scudder.

While there is familiarity when it comes to using homegrown tools, there is typically more manual labor associated with it. When you move to a solution that does everything in one unified system, you regain that time back spent doing manual administrative tasks.