The strategic importance of timely payments

Worldpay’s Director of Payout Commercialisation, Lara Gunes, sheds light on the power of timely payments as a key retail differentiator and discusses the most efficient payment practices.

Payment timing can influence supplier relationships, customer loyalty and operational efficiency. In this article, we tackle the transformative power that timely payments wield as a key differentiator for thriving retailers.

How can timely and efficient payment practices contribute to stronger relationships

When retailers consistently make timely payments, they are building their reputation as a reliable partner in the global marketplace. Consider things from a supplier's perspective: if two retailers of similar size want to work with you, and one consistently pays on time while the other doesn't, which relationship would you prioritise?

However, the process goes beyond reputation. Paying suppliers fast often unlocks early-payment discounts, which can significantly impact a retailer’s bottom line. We’re talking about potential savings, which, for large retailers, can translate to millions in cost reductions annually.

Maybe more importantly, payment capabilities expand a retailer’s supplier universe. If you can pay out only to certain countries or through limited methods, you are artificially constraining your supplier options. This can be the difference between having access to innovative products or being left behind by competitors who can work with suppliers worldwide.

The connection between fast, hassle-free refunds, and customer loyalty

Customer expectations have fundamentally shifted, and retailers who haven’t adapted are losing ground. We live in an era of instant gratification, where customers use app-based ride-hailing companies for immediate transportation, online food-ordering services for quick food delivery – and they expect the same immediacy when it comes to refunds. In other words, we live in an era of instant gratification.

Fast and hassle-free returns elevate brand reputation because shoppers gain greater transparency, control, and convenience. Instead of having to track refunds online or call customer service for updates, they get immediate resolution. This builds trust.

Consider the in-store experience: when a customer can receive a refund instantly in store, rather than being told it will take five to seven business days, it builds confidence. This is especially crucial for international shoppers who might be concerned about cross-border transaction delays.

Prioritising main reporting capabilities when selecting a global disbursement solution

Visibility is everything in global payments. Retailers need unified reporting that consolidates all their payout activities, whether they are paying suppliers through bank transfers, customers through card refunds, or partners through digital wallets across multiple currencies and markets. The last thing you want is to juggle five different reporting systems to understand your global payment flows.

Flexibility in reporting infrastructure is equally critical. Your disbursement solution should integrate seamlessly with your existing technology. This means offering multiple integration options, such as web portals, developer-friendly APIs for technical teams, and compatibility with third-party treasury management systems.

But here’s what separates good reporting from great reporting: customisation capabilities. Retailers should be able to set up bespoke notifications for low balances, approved payouts or completed transactions. They should control user permissions, determining who can view reports versus who can initiate payouts. This control gives retailers greater transparency and security over their payment operations.

Currency fluctuation: the main concern for international retailers

Currency risk is often an overlooked cost that can significantly impact profitability. Many retailers receive invoices on day zero but don’t pay until day 30 or beyond. During that period, currency fluctuations can erode margins or create unexpected costs. Moreover, currency risk is often an overlooked cost that can significantly impact profitability.

The solution for handling currency fluctuations starts with choosing a payout provider that offers foreign exchange risk management tools. Forward rates, for example, allow retailers to lock in their exchange rate today for a payment they will make in days, weeks, or even months to come. This provides cost certainty and protects against adverse currency movements.

Transparency in foreign exchange pricing is equally important. Many providers embed substantial margins into their exchange rates without clearly disclosing the markup to retailers. You need a provider who shows exactly what you are paying for currency conversion and benchmarks their FX rates against wholesale market reference rates. This is important to note as many may offer what seem like attractive rates that are actually based on un-auditable sources, carrying hidden FX fees that can add up to significant costs over time.

Finally, prioritise providers with access to domestic clearing schemes in your payout destinations. When your provider can process payments through local banking rails rather than international wire transfers, you avoid hidden FX fees that SWIFT transactions often carry. This can lead to significant savings, especially with high payment volumes. It can create a better experience for suppliers, too, because they’ll be certain to receive exactly what they are owed, without the lifting fees typically associated with SWIFT transfers.

How to optimise the payment processes

Finding a provider that can meet most of your payout needs under one roof is crucial. The complexity of managing multiple vendor relationships, each with different capabilities, integration requirements and fee structures, creates operational inefficiency and increases risk.

Look for a comprehensive solution that offers the currencies you need, multiple payout methods, including cards, bank accounts and digital wallets, fast settlement times, flexible integration options, and robust FX functionality. When everything is consolidated with one trusted provider, such as Worldpay, you reduce vendor management overhead, simplify reconciliation, and often achieve better pricing through volume consolidation.

This approach also future proofs your operations. As your business expands into new markets or adds new payment use cases, you want a provider that can grow with you rather than forcing you to implement additional vendor relationships.

The payment landscape is becoming increasingly complex, but the retailers who succeed are those who view payments not as a back-office function, but as a strategic capability that drives supplier relationships, customer loyalty and operational efficiency. Learn more about how an efficient payout experience could benefit your business.

 

About the author

Lara is the Director of Payouts Commercialisation for Europe, the Middle East, Latin America & Asia Pacific at Worldpay. Her team is responsible for bringing Worldpay’s Payouts solution to market, with this remit recently expanded to include two of Worldpay’s latest big bets – Virtual Card Issuing & Marketplaces.

 

About Worldpay

 

Worldpay’s vision is to unleash the potential of every business. We do this through our ability to power global commerce by providing payments technology and expertise   to our clients everywhere. Our processing solutions allow businesses of all sizes to take, make, and manage payments in-person and online worldwide. Annually, we   process over 50 billion transactions worth more than USD 2.3 trillion across 146 countries and in 135 currencies.