At Altron FinTech, we are committed to assisting merchants in accepting virtually all payment tokens. This requires creating a platform capable of facilitating payments and transaction switching. Our approach involves integrating our back office with various token providers, such as QR code issuers, dynamic and static token providers, and buy now, pay later (BNPL) credit providers. Our vision is to empower merchants with the ability to offer and accept as many payment tokens as possible in their stores. Just as mobile phone users can access various apps effortlessly, merchants should have easy access to diverse payment acceptance platforms. Our goal is to minimise friction and enhance the ease of accepting payment tokens, ultimately benefiting both merchants and consumers.
In a recent conversation with Johan Gellatly, Managing Director of Altron FinTech, we explored the critical importance of offering multiple payment options for businesses and how this strategy drives success.
Why is offering multiple payment options essential for businesses in today's market?
In today's competitive market, offering multiple payment options is not just a luxury but a necessity. Choice is paramount; merchants need to accept any payment token their customers prefer. Gellatly emphasises: "If a merchant cannot fulfil a transaction due to limited payment acceptance options, they risk losing the sale. By enabling merchants to accept tokens from various issuers, we ensure they never miss an opportunity to complete a transaction, thereby enhancing their business success."
How have consumer behaviour and preferences evolved in recent years?
With the advent of smartphones and the rise of virtual and digital cards, more people have access to banking services, albeit in varied forms. The concept of an "alternative store of value" has expanded beyond traditional bank accounts to include vouchers and other forms of digital currency. Gellatly notes: "As these forms of value become more mainstream, they must be incorporated into the broader payment acceptance ecosystem. At Altron FinTech, we are dedicated to ensuring merchants can accept a wide range of tokens, reflecting the evolving preferences of consumers."
How does providing a variety of payment methods impact customer satisfaction and loyalty?
Offering diverse payment methods directly impacts customer experience, satisfaction and loyalty. If consumers can pay with their preferred store of value at merchants, they are more likely to frequent the same merchant/businesses. This creates a "stickiness" effect, encouraging repeat visits and fostering loyalty. Gellatly adds: "It's a win-win scenario: consumers enjoy convenience and freedom, while merchants benefit from increased traffic and sales."
What role does technology play in enabling businesses to offer diverse payment options?
Technology is a crucial enabler in offering diverse payment options, but it is the commercial constructs that present the most significant challenge. Traditional association payment methods come with established fee structures where merchants cover transaction fees. However, with alternative store of value tokens, the fee structure can be more flexible, with both merchants and consumers potentially sharing costs. Gellatly points out: "This requires a rethinking of the traditional fee models, but it also presents an opportunity to offer more cost-effective solutions for accepting alternative payments."
What challenges might businesses face when integrating multiple payment options, and how can they overcome them?
One of the primary challenges businesses face is the need for multiple commercial agreements with each token provider. This one-to-one relationship model is cumbersome and inefficient. Gellatly explains: "At Altron FinTech, we aim to simplify this process by facilitating these discussions on behalf of merchants with the payment token providers. Our platform allows merchants to choose which store of value tokens they want to accept, streamlining the integration of offering multiple payment options to their consumers."
Are there common pitfalls or best practices you can share?
Working with large retailers has taught us valuable lessons. These tier-one retailers drive the adoption of multiple payment tokens, providing us with significant growth opportunities. By leveraging these relationships, we can achieve economies of scale, making the environment more cost-friendly for smaller retailers and SMEs. Gellatly highlights: "This aligns with Altron FinTech’s commitment to financial inclusion, offering substantial benefits to all parties involved in the payment token offer and acceptance ecosystem."
As we build this ecosystem, we are eager to include as many stakeholders as possible on our platform. We invite any store of value payment token provider to collaborate with us, as we have the customer base to facilitate offering their tokens' as acceptance to our customers. Gellatly concludes: "We are also open to partner with our competitors to enhance token availability and spread these to the merchants we have as customers. By combining our efforts, we can promote financial inclusion and create a more integrated and accessible payment environment for all. The era of working in isolation is over; collaboration is the key to success."
To dive deeper into the topic of the perfect payment experience, be sure to tune in to our latest episode of the All Things Altron FinTech podcast, where Gellatly shares his insights. Don’t miss out – subscribe now to stay updated on the latest trends and innovations in the payments industry!
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