When thinking back on simpler times we can reflect on the few available payment options, as we traded livestock and land with gold and copper coins. In today's digital age, consumers expect businesses to meet all their payment needs – in the shortest time possible, and with the least amount of data input. By offering a range of payment options, we will position ourselves as innovators in the fintech landscape, while catering to our customers' needs. So, what do we gain from this?
Diversifying and staying competitive, while expanding our fleet of payment options, is crucial for customer acquisition. To continue offering customers, partners and end users the best possible service we need to offer products including as many market demographics as possible. By diversifying our payment options – for example with Paylinks – we are likely to see an increase in conversion rates, thus raising our brand profile and increasing sales. A timeless win-win.
It is a common misconception that companies with a B2B product don’t need to have a dialogue with end users. Zimpler is an account-to-account payment provider that aims to reshape that perception. We believe B2B2B2C is a potential gateway that can bring in more revenue for companies working together in an integrated ecosystem, with each partner offering the services they know best. It allows businesses to accelerate customer acquisition and deposits, grow fee revenue, and through partnership agreements reduce costs related to customer acquisition and unit processing.
The goal of a B2B2B2C approach is closely associated with building loyalty with the end user. We trust the next generation of fintech users will offer their long-term loyalty to brands they believe in and relate to. In the payment industry, we have a deeply ingrained belief that brand trust alone is what makes our products successful. And, while trust will always play a critical role, newer generations are maturing, and demographic data no longer reflect their true affiliations. So, it’s time to rethink and start planning for a new generation of users – while still being inclusive of the previous ones.
The reality is that we live in a time where utility and product are no longer enough. More than ever, consumers have access to an unprecedented amount of information about the brands they buy from and interact with – who they are and what they stand for. Therefore, companies must go the extra mile in communicating their mission and purpose to the consumer, to create products that drive affinity, awareness, and relatability.
Adapting a B2B2B2C approach as payment providers allows for a stronger position with our end users, through which we can provide a holistic value proposition for merchants. Turning that coin, this also means we cannot rely on merchants to build brands for the end user. We have to own that narrative ourselves.
Overdue invoices have bigger consequences than meets the eye. SMEs often experience cash flow issues and limits in operational growth due to late payments by customers. This, by effect, limits that same business in pursuing innovative solutions. Branching out to employees, they could be left standing without instant salary payments. This space is where we need to step-up as leaders in financial tech.
So, how do we achieve that in the most effective way? Data and figures from France show that the average time for an invoice to be paid often reaches 72 days. This is a major gap that needs to be closed, and we can do that by simply adding a “request to pay” or paylink option to invoices. Trials of this implementation from Zimpler shows that adding a “request to pay” or paylink option saw a 30% increase in invoices being paid within the first week. Taking things a step further, and applying this on a global scale, we can - together as an industry - greatly improve the well-being of companies. And those who might find the process too intimidating should know that it is as streamlined as possible, so that it can even be done through smartphones.
We live in a digital age and we must think outside the box and dare to colour outside the lines. Only through this shift of implementing innovative technology and cutting associated costs, can we help improve cash flow for SMEs and stay ahead of the curve.
This article was first published in Payment Methods Report 2022, the most updated overview of trends and developments in the payment methods space and the innovative technologies that these methods work upon, emerging consumers habits, and strategies on how to win at conversion and retention.
About Arjun Shah
Arjun is the Chief Marketing Officer at Zimpler, leading its brand strategy and ensuring a B2B/B2C implementation across platforms, fuelling the company’s future growth and expansion. Arjun is an innovative and strategic leader with 15+ years in entertainment development. With a great passion for technological innovation, he strives to make a positive impact in the world of finance.
About Zimpler
Zimpler is a Swedish next-generation fintech company, offering simpler and more secure transactions - without the need for cards. Specialising in Account-to-Account payments, we are trusted by consumers and merchants across Europe to pay and get paid. With a newly launched rebranding, we are rapidly expanding in new key markets, with a mission to ‘zimplify’ payment transactions everywhere.
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