UK businesses confused by payment solution options, says Tug
Furthermore, 53% of surveyed medium-large businesses believe that finding the right payment solution will be crucial to their future success.
12% are satisfied with their current solution, while 39% found theirs to be time consuming, 20% had received poor customer support, and 17% thought it may actually have caused a loss in revenue.
Broadening visibility for payments solutions
The motivation for finding a new payment solution is clearly present - 54% plan on doing so within six months - but Tug considers there to be a distinct lack of visibility in the sector.
One in 10 don’t feel confident in their ability to match their business needs to a specific solution. 34% attributed this to confusion over which is best for them, whereas 31% simply found it too time consuming.
These appear to be the primary barriers preventing payments solutions from reaching customers, and the problem could be even worse than expected: 19% stated they even struggled to differentiate different brands from each other.
24% of companies reportedly rely on thought leaders to guide their decision making on the topic, while 41% prefer a simple browser search. Tug points out that this is crucial: if a company’s website is difficult to find, payment solutions providers could lose over £11m in revenue.
Recognising the value of payments
As such, companies cannot afford to languish in obscurity; they must take action quickly, particularly as the ‘new normal’ dynamic is calibrated.
“Payment solution providers can play a key role in getting businesses back up and running as we emerge from the pandemic. It’s therefore vital that these solutions can be easily found online and have the strategy in place to capture relevant audiences,” said Emily King, Commercial Director at Tug.
“To boost online visibility, payment solution providers must leverage digital marketing tactics, such as search engine optimisation (SEO), to organically increase site traffic quality and quantity, whilst offering a low-cost and sustainable way to fuel top of the funnel awareness and conversions.
“Also, adopting tools that continuously assess on-site behaviour will allow them to stay ahead of rivals online by generating rapid insight into customer behaviour and patterns.”
Tink partners with Novalnet AG for open banking payments
The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.
Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide.
According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform.
The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly.
Novalnet partnership with Tink
By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe.
The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021.
Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties.
“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants."
Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”
He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”
Image credit: Novalnet AG