Nimble companies are quickly adjusting to the world as it is. As governments work to flatten the curve and keep citizens safe from coronavirus, business leaders and analysts are looking to the past to predict the future, and minimise the effects of an impending economic recession.
The world after COVID-19 is sure to bring changes. We cannot precisely forecast these changes, but we can, in the meantime, make smart decisions to set our companies up for a better future after the pandemic.
Forward-thinking founders and business owners are studying open data and markets and taking data-driven steps to serve their customers now and in the COVID-19 aftermath. To keep up, you must determine what strategy is best for your company at this time:
- Sit in survival mode
- Iterate and make adjustments to your offerings
- Accelerate production to satisfy increasing demand in your sector
Regardless of what strategy you adopt, it is essential to upgrade your business capabilities, especially regarding digital security, payments and reach.
In the world post-COVID-19, a higher standard of safety and efficiency will be required. You can achieve this and more by using push payments.
What are push payments?
A push payment, also called credit transfer, is when a customer authorizes their bank or digital wallet to send money directly to a receiver. Push payments make transactions secure, quick and reliable. Companies can instantly make payments to suppliers, employees and customers. Loan corporations and applications can instantly push funds to borrowers’ debit or prepaid cards, and popular services like Uber, Venmo and Lyft, powered by Visa Direct, use push payments to payout to their drivers and customers instantly.
So how does this affect your business?
Push payments present enormous opportunities for B2B and B2C companies. According to Visa, push payments represent a $10 trillion opportunity in the US alone. When you use push payments to facilitate business transactions, your settlement time is faster, and transaction costs are lower. Other benefits of push payments include:
Push payments keep your transaction costs low by circumventing the usual card-related fees, which is timely, as most businesses are on a mission to cut all non-essential and avoidable expenses. Push payments also enable employers to pay employees’ salaries straight into their cards on a recurring schedule. Knowing that their wages will come in as expected every month creates a calm and trusting company culture, as most employees are isolated and dealing with the crisis while working from home.
The real-time processing and funding of push payments eliminate the usual waiting time associated with traditional payment methods. With checks, debit transfers and ACH payments, users usually have to wait for days to receive their funds, but with push payments, the payout is instant. It takes, on average, 18 seconds to complete a transaction.
Traditional payment methods take days to complete. On receipt, you cannot ascertain if the account provided has sufficient funds in it. The time lag between initiating a transaction and receiving the funds leaves room for mischief if a customer isn’t honest. With push payments, however, banks review the transactions immediately. If there are insufficient funds in the card or account, the transaction cannot be completed.
Customers need assurance that their financial information is safe with you. Push payments guarantee security because they require fewer user data and offer a cleaner authentication path where the 16-digit card account number acts as the authenticator. Push payments also allow the reversal of payment flows to enable real-time payouts to debit and prepaid cards.
Push payments help to streamline accounts reconciliation in business-to-business (B2B) situations. Payment data is usually sent alongside the push payments providing immediate reconciliation. If a customer does not provide the exact amount specified in an invoice, it is easy to spot the discrepancy and reconcile your accounts quickly.
Trust is vital in business. Your customers should be confident that using your product, service or payout method will not end in loss of money or value for them. Push payments help to accomplish this by smoothly and instantly transferring funds between both parties and resolving any issues that may come up like declined payments and chargeback claims.
Regardless of where you look, the economic predictions are gloomy at this point. It is increasingly evident that companies that will survive must work with intention and strategy. To increase your business’s chances of survival, or even success, after COVID-19, you must take the time to assess your options and make data-driven decisions.
Digitalisation is no longer optional. Safety, reliability, and efficiency in local and international payments are expected. To get ahead of the curve now is the time to integrate push payments to serve customers better.
You can get started with Nium’s card solutions. As a Visa Direct partner, Nium’s card issuing capabilities simplify your payment process and expand your global reach. You can get your program started within four to six weeks and customize your cards with your company brand. Nium’s solution is easy to use, creates revenue sharing opportunities, and allows your customers to tap into the broader global capabilities of Nium’s Open Money platform, which includes multi-currency wallets, spending controls, and other benefits.
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