Top 5 Innovative ACH Payment Technology Trends
Payment technology is transforming business processes across many verticals and industries, and industries are evolving to become more technology-driven. Not only are ACH payment solutions a green initiative—something many businesses are striving for today—but they also offer improved security, cost-effectiveness, accuracy, and efficiency. As a result, keeping innovative payment technology solutions top-of-mind is critical for ISVs and ISOs if they want to remain competitive in a digital economy.
As the digitization of payment processing becomes an industry standard, ACH processing offers sustainability and provides new opportunities for software platforms and business merchants to accelerate business growth. ACH offers merchants faster and more accurate payment processing that is far more secure than paper checks, protecting against check fraud, data breaches, and identity theft. ACH also offers a lower interchange rate than credit card processing, keeping costs lower for merchants. Moreover, customers appreciate the convenience of an omnichannel payment environment that fits into their digital lifestyles.
Here are five emerging ACH payment trends in today’s digital economy.
Seamless Customer Experiences
Application Programming Interfaces (APIs) allow developers to integrate and build payment solutions that individual businesses need. For example, developers create customizable embedded payment pages for eCommerce using APIs and plugins.
When consumers have access to more payment method options, the opportunity for additional revenue also increases. This is especially true for online and internet-enabled payment technology, which allows payments to be processed anywhere and anytime. With global eCommerce on the rise, borderless payment processing will enable businesses to expand their reach and offer secure payment methods—regardless of location. The expertise and support of a reliable payment processor offer greater consumer convenience and reduced merchant burden.
From Cards to Codes
As consumer payment technology evolves, we continue to move toward a world where more merchants and consumers are looking for contactless digital payment solutions that work securely in-person and remotely. These solutions reduce friction and provide a better consumer experience across multiple devices.
ACH payment processing helps individuals process transactions directly from consumer accounts to merchant accounts, even on an automated schedule. This provides a near-instantaneous experience for merchants and consumers. Moreover, the computerized network makes payments possible without a physical card or check present. It provides improved security using tokenization and encryption, turning cards into codes that protect the consumer and merchant data against hackers and identity theft. A strong focus on improving and ensuring payment security is essential for a sustainable, digital economy.
Increased Demand for Mobility
The digital and tech-savvy Gen Z is entering its prime spending years. According to McKinsey & Company, in 2019, Gen Z and millennials combined made up “around $350 billion of spending power in the United States alone.” Due to continuously evolving payment technology, it’s clear that businesses need to innovate their payments and become entirely digitized to appeal to these younger generations. The ability to accept transactions on any device, putting payments at the customer’s fingertips through mobile apps and hosted payment portals, ensures a seamless and secure transition into a mobile-focused environment. ACH payment technology features such as SMS text and email invoicing solutions provide an ever-present advantage in a consumer market fixated on mobility.
Contactless Payment Methods
In a business climate where most companies conduct daily processes with as little contact as possible, it’s easy to understand the increased demand for contactless payment methods. Contactless payment processing expands revenue opportunities and future-proof businesses against potential disruptions to trade, such as a global crisis. With the rise of digital billing and an invoicing revolution for B2B organizations, there is a need for a more accurate, accelerated ACH invoicing process that simplifies billing and gets merchants paid much faster. Moreover, home assistants and smart speakers are transforming how consumers make purchases and manage their accounts in a contactless, digital economic environment.
Simplified Payments with All-in-One Solutions
Outdated technology is no longer acceptable for a sustainable digital economy because it forces delays and a lack of flexibility that leads to decreased revenue. To remain competitive, ISVs and ISOs need access to state-of-the-art ACH payment technology solutions.
Businesses typically want simple solutions to the complexities of payment processing. On average, enterprises have five gateway processors and four acquiring banks. Managing all these accounts, integrations, and payment data can be very difficult. It’s often best to choose an all-in-one payment platform solution that can grow with your business, offering additional features and functionality as it scales. Partners that provide solutions with multiple payment channel technology, accepting more than one payment form, simplify the process for merchants.
Digital payments are the future of business as we know it. Implementing innovative ACH payment technology solutions could solve the often unforeseeable changes in modern business processes. It could also be the ideal way for businesses to cater to the needs of increasingly tech-savvy generations as they grow their buying power. These, combined with many other benefits of staying ahead of the technology curve—increased opportunities for growth, accelerated revenue cycles, and fraud prevention are among the top advantages when becoming prominent in an evolving digital economy. With the latest payment technology solutions, you can provide frictionless payment processing to clients that will help to sustain both their businesses and yours.
If you want to partner with a payment solutions provider that can offer an all-in-one solution and a sustainable, frictionless payment experience in a digital economy, get in touch with our team now.
Date Originally Published: June 28, 2020
Date Updated: July 27, 2022