The Digital Now

The Digital Now: How to build customer trust and traction through payments

Modulr By Modulr on 24 November 2021   •   5 mins read
<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >The Digital Now: How to build customer trust and traction through payments</span>

The ability to establish trust with customers is the foundation of every successful business.

And, while customer trust may be one of the more intangible corporate assets, it’s one that can be felt keenly on the bottom line. Because, as recent research has shown, customers won’t part with their hard-earned cash (particularly online) if they don’t trust you and your processes.

Delivering a top-notch customer experience will go a long way to building trust. As more and more customer experiences are delivered through online channels, digital payments have become of critical importance – central as they are to the modern-day user experience.

We embarked on some quantitative research to find out what consumers thought a trusted payments experience actually looked like, aside from the best available security and fraud protection, (that’s the subject of another blog).

We asked and your customers have spoken, so join us as we take a look at how to build customer trust and traction through payments…

So long, analogue consumerism

Nowadays, we’re all digitally demanding. Our survey results show that the days of analogue consumerism are long gone. The digital consumer is here and we’re no longer just talking about digital natives (those who were surrounded by technology from their birth in the new Millennium). Older generations have broken free of the digitally dismissive stereotype and the results have uncovered overarching and intergenerational behaviours and expectations.

Your customers, regardless of age, have high expectations around the speed and delivery of payments. Digital payment experiences are already an intrinsic part of their everyday lives and, as a consequence, issues of security and trust are high on the collective agenda.

As the world becomes more reliant on digital services, the overwhelming majority of those surveyed now feel at greater risk online then they did 18 months ago. This sentiment is felt most acutely by the younger demographics, who were also (rather surprisingly) most likely to describe themselves as ‘average’ in their adoption of digital payment services – stating that they tend to use them when most people they know already use and trust them.

The relationship between trust, intention to pay and reputation

Payments are critical to customer experience, occurring at the time when the customer, having evaluated your proposition, acts on the buying decision. Failure to recognise the importance of delivering a trustworthy experience at this critical juncture may result in businesses losing customers, cash flow and reputation.

The majority of those surveyed said they’re more likely to trust a brand that invests in modern, customer-friendly payments processes. And over half say that a trusted payments experience would encourage them to use the online service provider again and reward them with their loyalty.

And what are the key elements of a trusted payments experience?

Based on our research, there’s a clear formula for success. And while we can’t go into all the details in this blog (you’ll need to download the free eBook for that nugget of payments gold), SPOILER ALERT - instant payments, instant notifications and ease of use rank highly as far as trusted payment experiences go. These fuel loyalty and increase both spend and the likelihood that your customers will recommend you.

With modern processes like real-time APIs that allow for intelligent, automated payment flows, there’s no excuse for tardy payment processing which lacks trust and transparency. Nowadays, outbound payments can be made 24 hours a day, all year round and often fulfilled within seconds via the UK payments scheme Faster Payments. Inbound funds can be automatically reconciled and cleared quickly, with balances updated in real time; allowing brands to deliver a superior customer service. After all, if a customer can track their takeaway right to their doorstep, surely the same technology should be available to track their £40,000 house deposit through the payments ether, right!?

The research showed that embedded payments also give peace of mind, save time and build trust. Embedded financial services are the reason the non-traditional financial services providers and online marketplace innovators such as Amazon, eBay, Etsy, Deliveroo and Uber are winning at the customer experience game. They’ve acquired an edge over traditional businesses by offering payments and other financial services within their platforms as a core capability; allowing customers to leverage a greater range of functionalities without ever leaving their brand.

Trust – hard to win, easy to lose

Building trust isn’t easy and delivering pure payments power seldom happens unaided.

Luckily, there are tools available, like Modulr’s Payments Map Analysis, which can help you identify the pitfalls in your customer journey and the steps you need to take to ensure the experience you offer your digitally demanding customers is a unified, integrated and ultimately trustworthy one.

The fact is that the infrastructure needed to support and enable a truly trusted payments experience has become a basic business building block and as critical as any other transport network. Even the most agile innovator can benefit from outsourcing its payments processes (and the associated compliance and regulatory requirements) to infrastructural FinTechs like Modulr. This gives them infinitely greater scope and flexibility to respond to shifts in customer behaviour. Surrounding their core systems with microservices and third-party APIs to access functionalities like Faster Payments and embedded payment innovations will go a long way to delivering the trusted payments experience of the digitally demanding’s dreams.

To find out more, download The Digital Now research and eBook.

This invaluable eBook will help you to navigate the landscape of the Digital Now. It’ll tell you what we know now about the digitally demanding audience, who they really are, what they really want from their payment processes and how to attract and keep them. It will also explore the very different obstacles and opportunities that the Digital Now offers to both challenger companies and more traditional, incumbent organisations. And give you the recommendations you need to please your digitally demanding customers, today.