The global network payment services market is expected to witness momentous growth at a CAGR of 7.7% over the next five years due to the widespread adoption of digital payment solutions by not just businesses and consumers, but also the government, banks, and financial institutions.
The research report titled ‘Global Network Payment Services Market: Procurement Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.
The adoption of various cost-optimization levers helps buyers of network payment services realize direct cost savings and enhance category management and value benefits (including reduced procurement complexities).
Technavio procurement experts have segmented the cost saving opportunities in the network payment services market into the following value-enhancement opportunities:
• Adoption of technology
• Supplier Competition
• Adoption of negotiation strategies
• Optimization of procurement practices
• Bundling of services
Adoption of technology saving aspects
Technologies such as mobile wallet, NFC payment, EMV security and WAP payment enable contactless payments, which are secure and easy to execute. The adoption of such technologies can lead to cost savings to the extent of 15%. Buyers prefer suppliers that provide payment gateways and fraud detection services by building and maintaining a secure network and implementing strong access control measures.
Optimization of supply pool segregation is critical in the global network payment services market. Category spend managers suggest tracking of supplier performance against a defined set of KPIs (which are agreed upon by both parties during contract negotiation) such as active customer accounts, the volume of payments, and percentage of successful payments. Buyers should evaluate the suppliers’ ability to innovate and reduce complexities in network payment transactions to ensure accurate results with minimum cost and time.
One of the most opportunistic strategic cost saving levers in the global network payment services market is the bundling of payment gateway with payment processing. Buyers prefer suppliers that guarantee the settlement of transactions between the acquirer and issuer bank and reduce the buyers’ credit risks due to any financial failure.
It is imperative that suppliers develop strategies and continuously monitor the financial and political health of the organization, and economic operating environment of the customer to mitigate risks.
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