How Banks Can Reclaim Competitiveness through a Payment Gateway Partnership
Merchants are looking for payment services – make sure they don’t have to look any further than your regional or community bank.
Regional and community banks are facing new competition on multiple fronts. Larger institutions are growing, in part by acquiring smaller banks, creating mega-organizations with the extensive resources they need to develop and offer new products and services. At the same time, Fintechs are rising and entering the banking space, offering person-to-person payments, loan and payday apps, and other services that your customers, especially digital-native Gen Z and millennial business owners, find appealing. Even as competition increases, be assured a payment gateway partnership can enable you to update your offerings and help your bank stay competitive.
What a Bank-Payment Gateway Partnership Can Mean to Your Business
A payment gateway partnership will enable you to provide the services your customers demand today. Merchants recovering from pandemic shutdowns and adapting their businesses to new consumer behaviors need to offer payment capabilities to keep consumers engaged and revenues coming in. Developing those capabilities in-house, however, takes tech expertise and capital. It also takes time, which may be your biggest challenge; SMB merchants can turn today to digital commerce platforms that allow embedding these services into their platform.
A payment gateway partnership allows you to roll out the payment services your customers need quickly. Your payment gateway partner can provide you with multiple payment capabilities. You can then enable your merchant customers to accept digital payments online, offer consumers the ability to use mobile wallets, or integrate payments apps or other platforms that could accept payments.
Granted, you may be offering some of those services now. It’s a common scenario, however, for banks to use one partner for ecommerce payments and another for in-app payments. Unfortunately, this creates unnecessary complexity for your business and your clients. Choosing a partner with one comprehensive digital platform will streamline internal operations and give your customers the agility they need to match evolving consumer payment preferences.
Moreover, a cloud-native payment gateway gives you a secure innovation platform; no infrastructure investment and build are required. Cloud platforms also provide you with computing power for analysis, providing you with insights that can help you tailor your offerings to your market.
The Benefits of a Partner with Payments Expertise
A payment gateway partnership also gives you the advantage of resources who understand payments technology and infrastructure and can help you successfully provide the services merchants in your market need.
Your payment gateway partner can also advise you on Payment Card Industry (PCI) compliance and provide you with PCI Data Security Standard (PCI DSS) certified solutions developed to keep payment data safe.
A payment gateway partner with extensive payment processor relationships also gives you the advantage of offering your customers the best fees – and the ability to switch to a new processor if things change. This is a distinct advantage over Fintechs that may be tied to a specific processor – and a flat rate or higher-than-average payment processing fees.
Maintaining Market Share is Possible
Your bank provides a vital service and has developed relationships with businesses in your community. Digital payment offerings from larger banks or Fintechs don’t have to end that. You can continue to provide the personalized service you are known for as well as offering new payment capabilities that your merchant customers need to compete in today’s world.
Demonstrate that you understand your customers’ challenges and you’re responding by expanding and updating the services you provide. A payment gateway partnership will put you on the path to making it happen.