Marketplaces Focus on Loyalty Programs for Media and Telecom Sectors

Media and telecom organizations are working with payment facilitators (PayFacs), independent software vendors (ISVs) or marketplaces to make embedded finance part of their business models.

According to PYMNTS Intelligence’s “The Embedded Finance Ecosystem: Media and Telecom Edition,” these three players are ready to help, but marketplaces may be making the most headway in media and telecom innovations. Ninety-two percent of them are focused on developing loyalty and rewards program innovations, and they are making headway in digital wallet innovations.

Meanwhile, 33% of PayFacs working in the media and telecom sector are putting their focus on developing installment plans, the study found. Nearly half of ISVs working with media and telecom clients are zeroing in on operational enhancements, including faster transaction processing and improved profitability. However, 36% of ISVs said adhering to regulation and compliance requirements remains the top challenge they face as they work to innovate.

These are just some of the findings from the study, which reflects insights drawn from surveys with nearly 300 executives working at PayFacs, ISVs and marketplaces.

A deeper dive into the data revealed that when working with media and telecom organizations, PayFacs, ISVs and marketplaces each prioritize different features, and the reality of what each offers their clients reflects those priorities.

For instance, more than 8 in 10 PayFacs treat chargeback and dispute management capabilities as a priority, and nearly 42% of them now offer it. While three-fourths of PayFacs said “single reconciliation of transactions” is important, only one-quarter now offer it to clients, suggesting there is room to grow.

Nearly three-fourths of ISVs, meanwhile, offer their clients training support, which likely reflects the common struggle of learning to use software for the first time. Ninety-two percent of marketplaces now offer their clients a method to capture buyer feedback and display user ratings — a feature critical on sites offering a multitude of products.

One thing all three players agree on is customer service. All three offer 24/7 customer service.