There’s no business that isn’t looking to increase their revenue or profit. From prices to packaging and production lines you could spend a lot of time tweaking, testing, and tightening up to squeeze out that little bit extra.
These efforts can work, though sometimes they can impact the customer experience—no one is impressed by smaller packages that cost the same as previously or reduced service levels—and this could have long term repercussions.
But there might be a simpler way to unlock revenue. And the key is payments.
If you were tasked with increasing revenue, you’d probably look to boost sales. Imagine the effort that would take and the pressure it would put on staff and processes.
And yet by making relatively small adjustments in your payments systems, you could make some revenue gains by barely lifting a finger.
Increased authorization rates get everyone’s approval
Ok maybe you’d have to lift a few fingers, but we’re talking about adjustments. Adjustments that could help you win big.
Payments are a goldmine. There is untapped potential all over; you just have to know where to look, and how to extract it. Smart solutions can streamline payment processes to increase approval rates and reduce false declines. Using smart solutions can also give businesses an edge by improving the overall customer experience, encouraging loyalty, repeat customers, recommendations, and so on.
Tokenization is a great example. Tokens replace customers’ data with a unique digital identifier, storing their real data securely. The token means customer information can be recalled easily, making the payment process quick and frictionless.
It’s what makes ‘tap to pay’ and ‘click to pay’ possible and, if you’re not already using it as part of your payments solution, then take note: we’ve seen tokenization increase approval rates by 3%1 and reduce fraud by an average of 28%2 without creating additional friction for your customers. That’s two ways of potentially increasing revenue right there.
Then there’s payments orchestration. A combination of payments processes can reduce false declines and boost authorization using AI and big data.
And when you consider that false declines cost businesses $443 billion a year,3 you’re looking at a significant increase in profit there too.
The time to take action is now
The key takeaway is that these are things businesses are likely either already doing or considering doing soon. Tokenization, orchestration, authorization; they’re all just part of the payments goldmine.
You should make sure you’re working every option so you can soon reap the rewards.
Want to know more about how to unlock more profits with payments?
1 VisaNet, Jan-Mar 2022. Visa credit and debit global card-not-present transactions for tokenized vs. non-tokenized credentials. Auth rate defined as approved count of unique transaction authorizations divided by total unique authorization attempts, based on first auth attempt only.
2 VisaNet, Jan-Mar 2022. Visa credit and debit global card-not-present transactions for tokenized vs. non-tokenized credentials. Auth rate defined as approved count of unique transaction authorizations divided by total unique authorization attempts, based on first auth attempt only. (PAN & Token) with digital wallet TRs April-June 2018, Issuer region: US.
3 The E-Commerce Conundrum: Balancing False Declines and Fraud Prevention, July 2019, Aite Group survey of 100 US e-commerce merchant executives.
Disclaimer: Case studies, comparisons, statistics, research, and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa neither makes any warranty or representation as to the completeness or accuracy of the information herein, nor assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.