Insights Magazine from CMSPI
Page 3 | November 2021
It’s not unlike payments, where a single miscommunication or breakdown in the supply chain can cause major problems with your business’ ability to optimize payments. Suppliers may lack the incentives or resources to communicate effectively with one another, which can result in lower approval rates and/or higher costs. As merchants and suppliers don’t always have the data or insights to diagnose breakdowns in the supply chain, evaluating the issue with your supply chain is as easy as evaluating the issues with your watch. The goal for most payments managers is to improve sales by increasing approval rates while decreasing costs per transaction. At CMSPI, we define transaction productivity very simply as getting the most out of each payment. That involves a combination of low costs and high approvals while maintaining robust fraud and security standards. For merchants struggling to obtain cross- supplier benchmarks, ensuring maximum transaction productivity is challenging. And with more alternative payment solutions available, optimized productivity requires engagement throughout the payments supply chain. In this edition, we provide insights on where transactions become unproductive,
and offer guidance on how to rectify some of these issues that plague the payments industry.
As we explore approaches to payments, cryptocurrency has posed as many opportunities as challenges. Most people are still trying to understand cryptocurrency, and in this month’s edition we cover what it is, how central banks are getting involved and the future of digital currency. In our Global Payments in Brief section, we take a trip around the world and look at everything from U.S. fraud trends and Afterpay’s acquisition by Square to shifting market share among European acquirers. Around the globe and across the supply chain, CMSPI has visibility into the many complexities involved in ensuring transaction productivity for all stakeholders. As one broken cog in a watch can give the wrong time, one miscommunication or breakdown in the payments supply chain can create inefficiencies. These impairments can make transactions unproductive, leading to lower approvals and higher costs. It is therefore imperative that merchants and payment firms work together collaboratively to address these issues which have routinely hampered transaction productivity.
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