Client Conversations and Trends
By Samarth Bansal, V.P., Nium Checkout
We are fortunate to be in a privileged position where clients approach us to discuss and solve their payment needs. These needs vary, from new business models to expanding into new markets or enhancing efficiency in their current processes.
I have always found that clients feel more confident and comfortable knowing their challenges aren’t unique. Additionally, they appreciate market insights to help them evaluate possible solutions for difficult business problems.
Based on our conversations on the Nium Checkout side, here are some key points we are hearing from clients in the space:
- Working with traditional payment gateways (PGs) has proven challenging, especially cross-border. This becomes even more pronounced in high-growth emerging markets. Here are some of the symptoms that indicate that the PGs aren’t suitable for the intended purpose:
- Authorization rates are consistently below 75%, especially in cross-border transactions.
- Consumers tend to drop off at checkout, particularly in markets like Chile, Peru, Mexico, Brazil, India, Indonesia, and other emerging markets. This is primarily because of the lack of locally preferred payment methods.
- Limited to no visibility on the foreign exchange (FX) benchmark used for settlements resulting in disguised FX costs. This lack of transparency makes it difficult for the operations team to reconcile and know the end-to-end cost of payments.
- We are witnessing a growing trend of clients seeking to consolidate their payment vendors. They want to streamline their collections and checkout processes while integrating payouts for various purposes, such as payroll, invoices, affiliates, and creators. This consolidation aims to improve capital utilization efficiency and reduce operational overhead.
- India is a market with immense potential but operating solely on a cross-border basis can be challenging. Clients are actively seeking a sustainable and compliant provider who can address not only their collection needs in India but also meet tax requirements effectively.