From consoles and tablets to smart watches and VR headsets, recent years have witnessed extraordinary developments in gadgets and tech. The rate of technological advancement is such that a product can be cutting edge at the start of the year and outdated by the end of it.
Shiny new tech often proves irresistible to many of us, and there are consequences to our addiction to technology. As we replace our older devices with smarter phones and thinner TVs, we create a significant amount of electronic waste; in the UK alone this amounts to an astonishing 2 million tonnes every year. By 2018 it is estimated that we will produce more than 50 million tonnes of electronic waste.
However, from this rubble of tech a new industry has emerged: electronic recommerce. But how do recommerce companies gain a competitive edge in an ever-expanding marketplace? The key is customer satisfaction and in the recommerce sector this hinges on fast payments. Companies must evaluate goods and process payments as quickly as possible to fend off competitors and ensure that customers return. Delays not only turn off existing customers, but they also damage reputation.
The high volume of payments flowing in and out of a recommerce business is costly to manage. Bank-to-bank transfers, or BACS (Bankers’ Automated Clearing Services), are the cheapest payment option, but it takes three days for these to arrive in the customer’s account. This delay in payment risks leaving the business at a competitive disadvantage. Investing in Faster Payments speeds up this process, keeping the customer happy. It can be expensive and banks are often unable to process these payments at the weekend or outside of working hours.
So, should recommerce businesses really trade in their old payments processes and upgrade to the latest financial technology? Yes, and here’s why.
No more compromise
There are different ways to get access to Faster Payments. Some companies, Modulr for example, sit between a business and its bank to offer a more flexible payments process. This allows Faster Payments to be sent at the click of a button, at any time of the day, and arrive in the customer’s account from just half an hour. These services are also more affordable than others. The potential here is huge: no longer must recommerce businesses choose between keeping the customer happy and keeping their costs under control.
API payment triggering
APIs (Application Programming Interfaces) are becoming more and more common in the payments industry. Simply put, they enable developers to communicate easily with other platforms. One of the ways that this can be achieved is by removing the need for payment batch files, which are prone to error and can slow things down. Using an API can allow an individual payment transfer to be made in near real time. This reduces the time spent on processing payments, and cuts both costs and the likelihood of a mistake being made.
Stay in control
Staying in control of cash flow is a constant challenge when handling a high volume of payments in and out of a recommerce business. One of the other benefits of new payment technology is greater control. With Modulr it is possible to get notifications as soon as a payment is sent and to automate payment flows through the business. You don’t even need to change your bank, this extra functionality can be plumbed in quickly and without disruption to the business.
So there you have it, the secret to customer satisfaction and loyalty in recommerce. By upgrading payments processes, recommerce businesses can cut out the compromise, speed up transfers and, most importantly, stay in control.