PriyaPatelIn 2024, consumer demand for instant and alternative methods of payment has never been higher. Offering payment choices to consumers is fast becoming the norm, and merchants need to act by leveraging payments automation and innovative payments systems to streamline their processes and shorten their invoice-to-cash window. We speak to Ernst & Young’s (EY’s) Managing Director of Financial Services Consulting, Patricia Partelow, who says the need for change is driven by demographics, “including age, geography and socioeconomic factors”. Indeed, a recent EY survey revealed that Gen Z leads the generational pack in adopting digital payment methods. Notably, Gen Z is up to three times more likely to use an alternative payment method, such as contactless payments, payments apps, Buy Now Pay Later and in-game currencies.
Partelow says that the solution for merchants to meet these changing payment needs is through Payment Orchestration Platforms (POPs). POPs integrate and unite multiple Payment Service Providers (PSPs) and the various alternative and local payment methods they provide, offering merchants the ability to customize their solution suite to their needs and increase acceptance of different payment methods. She also highlights the importance of partnering with fintechs and traditional financial institutions to ensure compliance with regulations and payment rail operating rules.
Partelow emphasizes that merchants must see payments as a strategic lever that can increase sales and improve customer experience. Taking a cross-functional approach to payments and partnering with different teams ensures that payments acceptance becomes a strategic enabler for growth. Merchants should also focus on optimizing their payment disbursement processes to improve efficiency and delight customers.
