THE COLLECTION PAYMENT JOURNEY
IMPROVING COLLETION RATE EFFICIENCY
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When exploring how to maintain collection rate efficiency, businesses can be overwhelmed with challenges. For many, limited payment options, shifting consumer behaviour, and the economic impact on payment habits are prominent stumbling blocks. Let’s explore these difficulties and how Payment Solutions Providers (PSPs) can support businesses in improving collection rates and streamlining the payment journey.
DATA
When payments are unsuccessful, businesses often find themselves in the dark, unsure of why the transaction failed or how to rectify the problem. This can lead to a frustrating and time-consuming process for both businesses and customers.
By partnering with PSPs who provide comprehensive data analytics on customer payments, such as payment decline codes, businesses can gain deeper insight into the reason behind unsuccessful collections. A data-driven approach enables businesses to identify the root causes of payment issues and implement strategies to boost success rates.
CONSUMER BEHAVIOUR AND PREFERRED PAYMENT OPTIONS
Customer payment method preferences are constantly evolving, and businesses must adapt to these changes – understanding how customers prefer to make payments is crucial for optimising collection rates. Limited payment options can be a significant barrier to successful collections.
Businesses can address this by partnering with PSPs who offer a variety of payment options. For example, offering Open Banking alongside traditional payment methods provides greater flexibility for customers, as well as boasting up to 97% authorisation rates for businesses, surpassing the rates of credit or debit card transactions.
Partnering with PSPs who offer cost-effective Open Banking payments, alongside an array of other options, can be a key catalyst for businesses in streamlining their collection process. By staying attuned to customer behaviour and adapting to their needs, businesses can ensure a streamlined payment experience and ultimately improve collection rates.
ECONOMIC IMPACT
Changes in the UK economy have had a profound impact on how people make payments, with up to 95% of the population expressing their concerns about the cost-of-living crisis. Rising costs alongside economic fluctuations are influencing customers’ ability to make timely payments.
Businesses should work with PSPs who can help them adapt to changing customer needs, such as using data to identify optimal times to take card payments. By doing so, businesses can adapt to customers’ evolving financial situations and maintain consistent collection rates by providing flexible payment methods.
FINAL THOUGHTS
By understanding transaction data, offering an array of payment options, and adapting to changing payment method preferences, businesses can embrace solutions that enhance collection rate efficiency. Be sure to speak with your existing PSP to dive into the aforementioned strategies, or connect with key partners in the ecosystem who offer a tailored approach to payment solutions.
