Friday, January 8, 2016

How to Create a Scalable Payments System

Creating Effective Fintech Payment System

Generating an effective fintech payment system is much more than removing the credit cards while indulging in transaction. There are several companies, in fintech which tends to build scalable payment methods and as per EY; the largest market in UK fintech is payments which is around £8bn a year.

However payment could be difficult and in order to make money, a new payment source is essential to scale rapidly for economics to function. A proposition is essential which could be considerably convincing for consumer as well as the merchant together with various other players in the value chain. Payment tends to work and though it is not impeccable by any means, all the same it tends to work.

Firstly, one needs to add value to a payment method in order to make an effective business. It was observed that just doing payments seems great though not good enough. Given the option of paying at a restaurant with the phone through contactless, rather than the credit card, the difference would not be big, and one will still need to go through the process of asking for the check and view it. Instead of paying with credit card, one would be paying with their phone and the incentive of using the phone is not strong.

No Need of Paper Vouchers/Loyalty Program

In one intends creating a compelling payment experience, like trying to comprehend the full process, one needs to understand where the discomfort points lies for the customer. For instance the technology has been integrated into restaurant apps enabling consumers in making payments for the total bill amount or split the bill with others through Apple Pay, PayPal or a registered card on a MyCheck account, without the need of waiting for the staff.

Moreover, it also permits sophisticated incentives together with loyalty programs that are designed to personalize the dining experience for the customers. When a customer tends to sit in a restaurant, they would want to check the menu and they can do that through the app of the restaurants which is powered by MyCheck and when he intends to redeem his coupons or offers or even participate with loyalty program, they could do the same through the app.

There is no need of paper vouchers or loyalty cards and the accumulation together with redemption seems to be automatic.

MyCheck Platform is Integrated

And when you want to pay, you don’t need to ask for the check since the MyCheck platform is integrated and one can pay as well as split the bill by utilising the smartphone.When it comes to monetizing an app it is based on what the app intends to achieve. Several of the payment apps have not been generating revenue and the merchant is paying them.

The amazing thing with regards to MyCheck is that they are in partners with chains that they are working with and the partners’ success becomes their success. It is not too difficult in persuading customers in using the app for the first time. The big challenge is on how one makes them loyal, how you tend to drive repeated visits and at the same time provide an improved customer experience.

According to their data, it has been observed that when a user tends to use the app more than twice, they get hooked to it. They need to be convinced to use them twice and then they tend to get used to the experience and appear to like it.


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