Adopting the latest digital payments innovations can help firms keep their businesses operating smoothly while also benefiting business relationships. Not only do 68% of firms say that digital payments innovations have improved their operational efficiency, but 40% say it has improved customer satisfaction and 32% say it has improved supplier satisfaction, according to Accelerating The Time To Realized Revenue, a PYMNTS and Mastercard collaboration.
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While both large and mid-size firms benefit from digital innovation, they expect different key benefits from adoption of digital payments innovations.
Mid-market firms say digital innovation has had an especially marked impact on their relationships with their buyers and suppliers. Among these firms, 43% say innovation has improved their customer satisfaction, and 33% say it has improved their supplier satisfaction.
Large-market firms tend to report more improvement in their anti-fraud operations than mid-market firms. For example, 39% of large-market firms report observing fewer fraudulent transactions after adopting digital innovations, and 27% said they see fewer false positives.
Despite the benefits digital innovation has to offer, several key factors stop firms from embracing digital payment innovations.
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Higher data management costs and regulatory barriers are at the very top of the list of factors holding back the innovation efforts of mid-market firms. Fifty-three percent and 48% of mid-market firms say data management costs and regulatory barriers are hindering their innovation efforts, respectively.
For large-market firms, the most pressing issue is a general lack of understanding about how innovating digital payments operations might improve their businesses. Forty-eight percent of large-market firms cite a lack of knowledge about innovations’ benefits and limitations as a key barrier hindering their innovation plans.
Large-market firms also struggle with high data management costs and regulatory problems, though to a slightly lesser degree than mid-market firms.
