Focus on the customer experience

The customer experience has become a critical factor in the payments industry, as digital banks, incumbent financial institutions, fintechs, and payment service providers (PSPs) seek to remain relevant and integrated into the overall customer journey. 

In the report "Five Critical Payment Lessons from The New Economy," it is noted that payment providers must engage more with their customers in order to avoid becoming a commoditised feature. This is especially true as more players are responsible for delivering the end-to-end customer experience, making it essential for payment providers to seamlessly integrate their offerings into the overall journey. The report highlights the importance of partnerships and collaboration, as well as integrating all aspects of the customer journey into an end-to-end experience. This means partnering with other players in order to provide the most complete solution for customers and maximising the value proposition for merchants, banks and fintechs.

One example of a company prioritising the customer experience is TNG Digital, the company behind one of Malaysia's largest wallets, Touch 'n Go eWallet. TNG Digital tracks the number of merchants and customers in each area and adjusts its strategy accordingly, running customer acquisition campaigns in areas with a higher ratio of merchants to customers and actively seeking out new merchants in areas with a higher ratio of customers to merchants.

In Australia, the New Payments Platform (NPP) is working to improve the customer experience by addressing existing pain points in the market and designing a customer-centric service. The NPP operates the real-time account-to-account payment infrastructure in the country and went live mid-2022.

Vietnamese digital bank Timo is taking a social-centric approach to banking. The more people use Timo for banking, payments, and remittances, the more value they receive as more people join the network. The company has built a strong network of users by leveraging its social media platform, which provides the opportunity for people to engage with each other and share their experiences with Timo.

Revolut, a digital bank and financial services provider, has also prioritised the customer experience through campaigns like its public transport cashback offer, which gave customers up to 20% cashback on their transport spend when using their Revolut card.

In the Philippines, Tonik is improving upon a familiar financial management concept by allowing family, friends, and colleagues to jointly save towards a common financial goal. By improving upon a familiar concept, Tonik is able to deliver a better experience for its customers.

The customer journey is a critical component of any business, and the payment space is no exception. While it may seem like a simple concept, understanding the customer journey is an essential first step for any company looking to improve its performance. By focusing on the needs and wants of consumers throughout their purchasing process, businesses can create a positive experience that keeps customers coming back for more.

In conclusion, the customer experience has become a critical factor for payment providers seeking to remain relevant and integrated into the overall customer journey. By addressing existing pain points and finding ways to improve upon them, payment providers can differentiate themselves and deliver value to their customers. In an increasingly competitive and rapidly changing market, a strong focus on the customer experience will be essential for payment providers to succeed in the long term.

Download the Report Five Critical Payment Lessons from the New Economy, created in collaboration with Kapronasia.