What's Happening?
Eric Horgan, a representative from Elavon, has shared insights on how retailers can maximize the value of their payment systems. In a recent discussion, Horgan emphasized the importance of treating payments as a critical infrastructure rather than just
an operational process. With the retail sector facing increased fraud, shrinking profit margins, and heightened customer expectations, Horgan highlighted the need for a strategic approach to payment systems. He pointed out the expected 40% increase in chargeback volumes by 2026 and stressed the importance of improving approval rates through Transaction Risk Analysis (TRA). Horgan also discussed the potential financial gains from addressing inefficiencies in payment systems and the benefits and risks of consolidating payment providers.
Why It's Important?
The insights provided by Eric Horgan are crucial for the retail industry, which is under significant pressure from various economic and operational challenges. By optimizing payment strategies, retailers can potentially reduce costs and increase revenue, which is vital in a competitive market. The expected rise in chargeback volumes and the need for improved transaction approval rates highlight the importance of robust payment systems. Retailers who can effectively manage these aspects may gain a competitive edge, improve customer satisfaction, and enhance their financial performance. The discussion also underscores the importance of partnerships between retailers and payment providers in navigating the evolving landscape.
What's Next?
Retailers are likely to evaluate their current payment systems and consider implementing the strategies discussed by Eric Horgan. This may involve adopting more advanced transaction risk analysis techniques and exploring the benefits of consolidated payment providers. Retailers may also focus on building resilience into their payment ecosystems to protect against future disruptions. As the industry continues to evolve, ongoing collaboration between retailers and payment providers will be essential to ensure that payment strategies remain effective and aligned with business goals.
Beyond the Headlines
The conversation with Eric Horgan also touches on the broader implications of payment strategies in the retail sector. As retailers increasingly rely on digital payment systems, the need for robust cybersecurity measures becomes more critical. Additionally, the shift towards consolidated payment providers raises questions about data privacy and the potential risks of over-reliance on a single provider. Retailers must balance the benefits of efficiency with the need for security and resilience in their payment systems.
