There was a time when value-added services such as embedded payments, data analytics, fraud prevention, and more were just add-on options. However, with growing competition and a demand for more, many of these have become essential pieces of payment processing. Simply put, “in payments, ‘value-added’ is no longer an add-on — it is the product.” Many of these services “have become core product offerings in an industry racing to stand out and shore up margins.”
A recent PYMNTS article also noted that “embedded finance sits at the center of that land grab… Embedded payments and adjacent financial functions inside software consumers already use, so the money movement all but disappears.” They quote “Vik Raman, vice president of product, enterprise at Trustly Inc.,” saying, “When payments are integrated directly into consumer activities, it creates a very frictionless, intuitive experience.” Some of the examples he mentions are “Starbucks’ order-and-pay app and Instagram’s one-tap checkout as early templates that marry loyalty, ordering and settlement in a single gesture.”
As these value-added services become essential to payment processing offerings, they help streamline business operations, boost the customer experience, and simplify transactions. Let’s discuss the three mentioned above in more detail.
Embedded payments
If you’re unfamiliar, this refers to enabling payments and lending directly within a non-financial platform, eliminating the need for customers to use a separate bank or financial service. As noted earlier, it reduces money movement since financial functions are built into the business’s system. Overall, this service boosts the customer experience, simplifies transactions, strengthens data insights, and reduces the expenses of handling payments and support.
Data analytics
Data analytics help businesses make smarter decisions and fine-tune their strategies based on insights regarding customer buying patterns, sales trends, and more. With these data analytics, companies can boost cash flow, improve operational efficiency, gain deeper customer insights, refine marketing efforts, and strengthen customer relationships. They also enhance fraud prevention by detecting patterns that may signal suspicious or fraudulent activity.
Fraud prevention
While check fraud continues to be a significant issue for businesses, digital payment processing solutions can enhance fraud prevention in several ways. Digital systems offer protection through tokenization, encryption, and real-time fraud monitoring, helping safeguard businesses and their customers better.
As you can see, these pieces are integral to creating a streamlined experience for the company and customer. Contact Richmond Financial Services to learn more about payment processing solutions and how they can improve efficiency, reduce cost, and help your business go further. We’re here to help.
