Why Your Global Payments Stack Needs a Back-office - Optimus

We all know the famous fable of the tortoise and the hare – the tortoise consistently moved forward while the hare was erratic.

The lessons of this fable can be applied to business: Businesses that consistently work towards their goals are more likely to achieve them than those that are sporadic in their efforts.

While this fable teaches us the value of consistency, perseverance, and a long-term mindset, it’s worth mentioning that being slow and steady isn’t always the solution for businesses. Companies must be agile and responsive to market changes in today's fast-paced business world. As a business, you’ll need to move quickly to gain an advantage over your competitors.

Take payment processing, for example. Your customers want a fast and seamless payment experience. They expect transactions to be completed quickly and without any friction. They want to complete the process efficiently and safely, knowing their sensitive data is well-protected.

Technology to The Rescue

Over the last few years, payment technology has advanced beyond simply allowing merchants to process credit cards.

The robust collection of technologies and capabilities that combine to create modern fintech solutions are typically called “the payment stack.” A payments stack is a collection of technologies and tools businesses use to process and manage payments. It includes payment gateways, processors, fraud detection, and other related devices.

Components of a payment stack work together to create a frictionless commerce experience for financial institutions, businesses, and customers.

The Case for Multiple Payment Solutions

While having multiple payment solutions may have begun as an effort to better the payment process, these solutions need to make more sense for most merchants.

Relying on multiple payment solutions condemns you to the whack-the-mole chaos of dated and fragmented payment infrastructure comprising stitched-together systems and legacy frameworks.

These ad-hoc systems are no longer viable due to real-time demand for streamlined payment processes. As a business, you should ask yourself whether you’re adapting fast enough to meet your customers’ needs or if your payment stack is hindering your growth.

Enter Universal Payment Back-office

A universal back-office refers to a set of payment technologies and tools that can work with any payment system or gateway.

More and more merchants are now consolidating their processing via a universal back-office.

There are many reasons why your payments stack needs a universal back-office-

• Monitoring – At some point, something in your payments stack will change. Whether it’s an internal or external change, it can affect performance. It would be best to be alerted when something is off and why. Relying on others to tell you can cost you. With a universal back-office, you’ll be notified whenever there’s an anomaly before it can negatively impact your business and customers.
• Cost-effectiveness – With a universal back-office, you can avoid vendor lock-in and negotiate better rates and terms with payment providers. This can lead to substantial cost savings and increased profitability.
• Flexibility – A universal back-office allows your business to switch between payment gateways and processors without changing your entire payments stack. This means that you can adapt to changing customer preferences, market conditions, and new payment technologies quickly and easily.
• Scalability – As your company scales up, the volume of purchases can become overwhelming. A universal back office can be scaled up to meet the changing needs of a business. This means your business can handle large payments during peak seasons.
• Better customer experience – A universal back-office can improve the customer experience by offering multiple payment options and reducing payment errors and declines. This can lead to higher customer satisfaction and repeat business.
• Improved security ­– As technology continues to advance, fraudulent activity continues to evolve. In 2021 alone, card fraud losses totaled $11.91 billion. A universal back office can help businesses comply with security standards and regulations. This can reduce the risk of fraud and protect customer data.

How to Know If You Need A Universal Back-office

Are you?

• Are you finding it challenging to meet the needs of the new consumer landscape with your current payment stack?
• Do you need help managing accounts, payment data, integrations, and payouts?
• Outgrowing the solutions you’ve banked on to help provide your customer with a streamlined buying experience?

If your answer is a resounding YES to these three questions, your payment stacks probably need a universal back-office.

Conclusion

In summary, a universal back-office can offer your business better security, greater flexibility, scalability, cost-effectiveness, and improved customer experience.

By adopting a universal back-office, you can build a payments stack that can adapt to changing market conditions and provide a seamless payment experience for your customers.

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