If you’re a digital business owner and not harnessing the power of payment data, you’re missing out on a wealth of benefits. Payment data, when analyzed effectively, can provide valuable insights for better decision-making and enhancing your offerings. In this blog, we’ll explore the top 5 ways payment analytics can empower your business and boost growth.
Understanding the Current Payment Landscape
The global payment industry stands as one of the most robust and resilient sectors. Despite the challenges posed by the pandemic, the payments industry generated an impressive $2.1 trillion in revenue in 2021. Furthermore, it’s projected that the global payments industry will contribute around $3 trillion in revenue by 2026.
Cash remains the predominant payment method worldwide, followed closely by credit and debit cards. Digital wallets are gaining popularity and experiencing widespread adoption. An emerging trend in the payments industry is open banking, allowing fintech companies to access customer banking data for improving their services and overall customer experience.
While the payments industry promises global growth, companies must address various challenges, including evolving customer expectations, rising inflation, and fragmentation caused by multiple parties (processors, acquirers, payment service providers, and banks) involved in transactions, complicating operations.
The Critical Challenge Faced by Companies
One of the major hurdles faced by eCommerce and online payment companies is the lack of a centralized data source. Multiple payment gateways and service providers each offer their own data, resulting in a jumbled collection of information that lacks utility for businesses. Without a single data source, companies struggle to identify and address gaps in their payment processes.
For instance, in the absence of consolidated data, companies cannot determine which payment methods are used most frequently, which gateway experiences the highest payment declines, or the reasons behind these declines. This can lead to unidentified ongoing losses and a subpar customer experience.
The Solution: Payment Analytics
This is where a payment analytics solution comes to the rescue. Payment analytics involves the processing and analysis of payment data, encompassing transaction time, value, method, volume, and more. A payment analytics solution is a set of tools that facilitate payment data analysis by aggregating data from multiple payment service providers and gateways into a single, trustworthy source of information.