Thursday, October 22, 2015

How to Create a Scalable Payments System

Payments

Multitude of Companies – Attempts on Scalable Payment Systems


A whole multitude of companies in Fintech have been making attempts in developing scalable payment systems. As per EY, one of the largest markets in UK Fintech is payment at around £8bn per year. In order to make money new payment provider should measure quickly for the purpose of economics to operate.

This would need proposition which would be knowingly convincing for consumers as well as merchants together with the different other players in the value chain. Currently though payment tends to work, it is not perfect by any means but all the same it works.

It is essential to add value to a payment system in order to make a successful business from it. It has been observed that by just making payment is great but not good enough. Should the option be given of paying with your phone through contactless instead of a credit card, at a restaurant, the difference would not be big. One would have to go through the procedure of asking for the check, viewing it and instead of paying with the credit card it could be paid with the phone. Hence the motivation of utilising the phone is not strong.

Technology Incorporated Into Restaurant Apps


This technology for instance has been incorporated into restaurant apps, permitting consumers to pay for the total bill or split the bill with others through Apple Pay, PayPal or any registered card on a MyCheck account, without the need of staff. Moreover, it also permits sophisticated incentive as well as loyalty programs created to personalize the dining experience for the consumers.

For instance, when a customer tends to visit a restaurant, they would need to view the menu which can be done through the restaurant’s app, powered by MyCheck. If the customer prefers to redeem his coupons or offers or even participate with loyalty programs, he could do the same through the app without the need of involving paper vouchers or loyalty cards where the accumulation and redemptions seems to be automatic.

When the consumer wants to pay, the need of asking for the check does not arise, since the MyCheck platform has been incorporated so that the consumer can pay as well as split the bill utilising their smartphone.

Payment Apps do not Generate Revenue from Consumers


With plenty of competition around, individuals tend to comprehend that it is not just about food but also about the experience. Making an effort of leveraging the potential of the smartphone, one could develop an engaged though discreet association with the guests. With regards to monetizing an app, the same is based on what the app is attempting to achieve.

Several of the payment apps do not generate revenue from their consumers, the merchant tend to pay them. The effect is that since there seems to be many platforms on the market, one would have to prove the value that would be added to a business for them to get involved. The amazing thing regarding MyCheck is that it is partnered with chains that have been already functioning where their success would be success for all.

The challenge lies in how to be loyal and how the visits are repeated while at the same time offer better customer experience. According to data, it has been observed that once a user tends to utilise the app more than twice they get hooked to it. A bit of convincing is needed to let them use it twice and thereafter they tend to get used to the experience and like it.

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