The evolution of consumer payment preferences, new technologies, and a need for enhanced transaction processing security has led to increasing complexity in the payment environment. Recent fee increases initially announced in 2020 but postponed until 2022 due to the pandemic only highlight the need for an optimized payment strategy.
Merchants need a powerful, flexible solution like a payment orchestration layer that can simplify and streamline payment processing by unifying various systems, including reconciliation, settlements, and reporting, under one efficient and cost-effective solution. The modular design of the OLS solution allows it to fit into nearly any situation or environment and enables configurability based on capacity and unique customer journey.
An optimized payment strategy can help merchants maintain a competitive advantage by lowering the overall cost and resources required to manage their payments systems and providing a true Omni/cross-channel experience for consumers.
How to optimize your payment strategy?
Merchants can optimize their payment strategy with an omnichannel solution that expands payment capabilities, facilitates nearly limitless connections, is highly scalable, prioritizes transaction security, and helps drive down payment acceptance costs.
Payment Processing Fees are Rising for Merchants
Payment acceptance costs are rising for U.S. merchants. According to the Nilson Report, total processing fees for all types and brands of cards reached $137.8 billion in 2021. That represents an increase of 24.3% from 2020, when the total was $110.3 billion. Analysis from CMSPI suggests that the average cost of payment processing for U.S. merchants will have doubled between 2009 and 2025. Specifically, CMSPI estimates that the weighted average acceptance price will double from around 0.8% in 2009 to over 1.6% by 2025.
OLS focuses on helping merchants reduce the overall cost of payment acceptance. One way OLS does this is by allowing users to become less tethered to any individual acquirer and providing increased flexibility. The OLS solution simplifies switching acquirers by providing a layer of abstraction between the merchant and acquirers. This allows utilization of the most cost-effective route transactions. Harnessing more than one processor can lead to better pricing and improved services. With OLS, choosing the processors that best fit your business is simplified, and you never have to feel locked into any provider.
Merchants Face a Changing Payments Mix
Consumers increasingly prefer to use specific payment types, which vary significantly by location and demographic. This leaves organizations striving to expand their payment capabilities to meet changing customer preferences. Data from the Federal Reserve Payments Study shows the continued growth of non-cash payment methods, including card and ACH, both gaining share. Furthermore, according to the Federal Reserve Payments Study, the pandemic may have helped to accelerate the growth of alternative and emerging payment methods, such as mobile payments, digital wallets, bank transfers, and prepaid cards.
While businesses meet customer expectations, their efforts often result in an increasingly complex payment environment. This can lead to internal resources feeling overwhelmed managing the payment infrastructure. A payment orchestration partner can help businesses develop the right mix of payment options while simultaneously reducing payment processing complexity.
OLS supports every major payment network in the United States and an increasing number of international payment types and is capable of implementing private label solutions. OLS allows the expansion of payment capabilities while shifting the time-consuming management of payment complexity off of internal business teams. Consumers are provided with an overall payment experience that is simplified, consistent, and as frictionless as possible.
Merchants Must Contend With a Retail Market in Flux
Compliance mandates and enhancing security can be burdensome for any business. Compounded with the ever-increasing demand of improved functionality and value add for customers, it can be a struggle to stay current. The rapid pace of technology change in the payments industry and the desire to provide a true omni/cross-channel experience for consumers can lead to frustrated and over-burdened support staff.
A payments orchestration partner can help navigate the challenges and complexities of widening payment diversity with greater ease. From new payment types to vendor services, our solution can integrate your eCommerce, mobile, and in-store footprints. OLS leverages proven industry knowledge to harmonize data and third-party service providers. This allows for savvy business decisions that add the most value to your enterprise.
OLS Can Help Merchants With an Optimized Payment Strategy
OLS gives you an omnichannel payments solution that expands your payment capabilities while reducing complexity, lowering costs, and enhancing transaction processing security. With OLS Payments, you get a best-in-class payments partner who lets you improve functionality and shift the management of payments complexity to us. Contact us today to learn how OLS Payments can help you develop an optimized payment strategy.
- The evolution of consumer payment preferences, new technologies, and enhanced transaction processing security highlight the need for an optimized payment strategy.
- OLS focuses on helping merchants reduce the overall cost of payment acceptance.
- A payment orchestration partner can help businesses as they develop the right mix of payment options while also reducing payment processing complexity.
- A payments orchestration partner can help merchants handle the challenges and complexities of widening payment diversity with greater ease.