Unlocking New Payment Opportunities

Jens Podewski, CEO, Paymentworld Europe Ltd.

T he only constant is change, and the world of payments is changing fast. These changes are opening up many new opportunities for all stakeholders: efficiency opportunities; differentiation opportunities; growth opportunities.

Customer expectations are evolving more and more quickly, and companies are being forced to adapt their processes and payment methods accordingly. Those companies that do not adapt will expire into irrelevance. But in such a dynamic environment, it is the leaders who have the most to gain. They are the ones setting the benchmarks for customer expectations. Paymentworld Europe Ltd., recognized as one of the Top 10 Payment and Card Consulting companies in 2020 by CIO Applications Magazine, is establishing itself at the forefront of the B2B Payments industry. We do not see ourselves as just a service-provider for our clients, but rather as a trusted business partner helping clients stand out, enabling them to quickly and effortlessly make and receive payments in whatever form best suits them, wherever they are in the world.

Those companies that do not adapt will expire into irrelevance

For most common types of businesses, payments isn’t necessarily a big issue as there are many good, off-the-shelf payment solutions that they can turn to. However, this is not so for merchants in high-risk industries for whom life is more complicated. High-risk industries include travel, pharmaceuticals, dating, casino, adult entertainment, CBD Oil, cryptocurrency exchanges and others. Understanding the payment requirements and opportunities within these industries requires an experienced compliance and operations team and that is certainly one of the company’s strengths. This is very important however, in today’s competitive landscape it is also not enough. Market leadership requires innovation. Speed through innovation One of the significant trends that we see in our industry is the growth of instant payments, i.e. the ability to transfer money between accounts within a few seconds, thus ending the cash flow latency of what is often around two working days. This innovation creates new opportunities for operational efficiencies for many companies. In the manufacturing industry for example, the seller needs certainty that the buyer has paid the requested amount before the goods are sent. To eliminate waiting periods, typically payment methods are used with a guarantee for the seller that they will receive the payments. Such guarantees however are not free and a third-party needs to be compensated for undertaking such risk. Instant payments alleviates the costs with such transactions. Another benefit of instant payments is that they bring corporates closer to a real-time treasury situation. In the future, cash flow forecasts will become more accurate and liquidity buffers may become obsolete with surplus cash invested elsewhere. Instant payments are now an easily accessible payment option through our IBAN4U product, a digital corporate account in Euro currency that comes with a unique IBAN. Account owners will appreciate how much we value operational efficiency. Companies applying for an IBAN4U account will have their accounts activated in just a few days after all the necessary approved documentation is submitted. This contrasts greatly with traditional banks which often take several months to open an equivalent account. One of the foundational concepts moulding the future of payments is convenience The efficiency of this payment solution is also highlighted by the facts that account holders can process batch payments, recurring payments, and they can access the platform 24/7 online. Apart for being a great solution for European businesses, IBAN4U is ideal for non-European based companies who are expanding their business to Europe and want a European account to make and accept Euro payments Going beyond efficiency Efficiency is one aspect of convenience, but there are other aspects that need to be considered too. Offering customers a variety of options can be another way to achieve convenience.

Apart from IBAN4U, Paymentworld Europe is making its mark on the market with its omnichannel payment gateway which offers merchants the possibility to work with over 350

Jens Podewski

Payment methods including giropay, sofort, paypal, neteller, skrill and many others. The payment market in every country is not only unique but it is also fragmented. Today’s consumers expect to browse and purchase anytime, anywhere, through any channel, using any payment type that suits them. Offering a variety of options ensures that consumers can pay for products and services with their preferred payment method, thus helping merchants improve their checkout conversion rates by up to 30%.

One of the foundational concepts moulding the future of payments is convenience.

Although consumers have their payment preferences, so do merchants. It’s worth noting that in 2015, alternative payment methods (APMs) actually surpassed card schemes. APMs such as Paymentworld Europe’s Real-Time Payments solution give merchants the opportunity for instant settlement, low transaction fees, lower risk of fraud and no charge backs. This has been made possible by Open Banking which has created an opportunity to make bank-based payments a reality for all European customers. These innovations in payments technologies and the unprecedented growth of global ecommerce throughout the last decade means that there is a significant diversity between the preferences of online shoppers. Apart from having to accommodate consumers’ preferred payment methods, merchants must also pay attention to consumers’ preferred payment channels which include mobile point-of-sale, mCommerce, eCommerce and in-store point-of-sale. Leading payment solution providers such as Paymentworld Europe enable merchants to accept payments through all the above using an omnichannel approach. Conclusion In conclusion, the payments industry is one which is moving at a very quick pace towards increased convenience for consumers, merchants and corporates. More than ever before, it is important for companies to have a partner that they can rely on to guide them on how they can strategically take advantage of emerging payment opportunities to access new markets, increase efficiencies and reduce risk. This is the significant value-add of working with a company with a leadership mentality as is Paymentworld Europe Ltd.