Growth oriented business owners must embrace Fintech solutions to remain relevant and competitive in an increasingly global business environment. The key is to provide customers with easier and faster opportunities to do business with you.
Today’s business owners are spoilt for choice and bombarded with endless opportunities as financial technologies (Fintech) continue to develop at supersonic speed.
It can be difficult to decide on which payment processors are right for you, and you will need more than one. Then of course, with each provider there are individual contracts, rules of application, terms of engagement, fees and of course, each has their own method of reporting.
You’ll need to be on top of it from the start otherwise you’ll find yourself drowning in currency conversion, settlements, taxes and fees, and charges native to the country where the transaction originated.
It’s complex for sure. And, you will also need specialised advice to get your head around it and experienced hands on support to manage it.
Researching and choosing reputable payment processors will be among your first steps and knowing the important questions to ask is central to your selection approach.
Several payment processors will not just provide your customers’ need for various payment methods, working between payment processors allows you to spread your risk.
For example, if a payment processor goes offline or goes broke, you can switch provider and continue earning with little or no interruption. Additionally, having this level of agility will motivate providers to stay sharp and offer the best possible value in terms of settlement times and fees. The fact is, if you rely on just one provider you’ll be governed by their rules, and that means you’ll be at their mercy when things go wrong.
Once your payment processors are in place, and if you’ve planned well, you’ll need to be ready for a flood of new sales and transactions.
Your accounting systems will need customised software that’s able to reconcile revenue from multiple payment gateways and in multiple currencies. Importantly, you’ll need capabilities for integrating different reporting formats from your payment providers into your own system that will, among other things, deliver an accurate snapshot of your overall financial position at any given time.
Mastering financial technologies, that include payment processors, can deliver enormous benefits.
Not least extending your access to customers world-wide and opportunities for significantly increased sales revenue.
Reputable payment processors will also mean you’ll be paid promptly, and with a bit of shopping around you’ll find quality services with affordable fees. Other benefits can include significantly enhanced cashflow and more profit.
But there are also risks.
You need to be sure that your providers functionality is user friendly, fast, easy and seamless for transactions in any currency – purchases as well as refunds or cash withdrawals.
Clunky, difficult or slow processes cause frustrations that turn off existing customers and foster distrust that can impact negatively on future sales.
Further, you’ll need information about providers security deposit or funds withholding policies, approach to liquidity and efficiency in fulfilling the terms of their contracts. You’ll also need to investigate their settlement reputation and history.
As I said that earlier, it’s complex and you will need specialised advice and hands on support to select, implement, analyse and manage your financial accounts.
I can help. As a chartered accountant, business advisor and financial management systems designer with a special interest in financial technologies, I currently work with a number of fast growing, businesses and organisations competing on a global scale. The technical knowledge and significant experience I’ve gained, and that continues to grow, is wrapped around a practical approach that can help you to achieve outcomes. These include growing your business, increasing its overall value and contributing significantly to your personal prosperity as the business owner.
Your Next Steps
Contact me on email@example.com or call +61 2 9699 9971 to book an appointment in my Sydney office, or on a video call.
If you are new to fintech solutions and you’d like to explore your options, we’ll review your circumstances and discuss the fundamentals of payment processors and the steps necessary for implementing financial technologies in your business. If you currently use payment processor facilities, bring your current contracts for review. Thereafter, we can analyse your payment processors performance against the fees you’ve paid, your settlement conditions and other KPIs.
Shane Kouros is a chartered accountant, financial management systems designer with special interest in financial technologies. He offers external CFO services that include business advisory services and tax advice that includes international tax expertise.