With more than 50,000 customers operating in 150 currencies in 204 global markets, and a team of experts supporting fashion and retail clients worldwide, payment technology partner Nuvei is well positioned to inform the fashion industry about behavioral drivers affecting the payments space.
Nuvei offers unified commerce solutions to its partners, supporting online, in-store and mobile payments, as well as supporting a range of alternative payment methods including Klarna, WeChat, Apple Pay and PayPal.
Nuvei’s Best in Class Payment Strategies is an iterative process that requires regular and innovative updates to reflect the needs of the industry. To facilitate international growth and expansion, innovation teams provide effective localization capabilities, while It The client management focus ensures that partners are aware of the traded categories and segments, and innovate in payment processing.
The recent acquisition of Simplex, a payment solutions provider for the cryptocurrency industry, exemplifies Nuvei’s commitment to enabling customers to meet customer demand for alternative payment methods.
Now, BoF is listening from Nuvei’s chief commercial officer, Motie Bring, to understand the business gains in payments innovation, the role the service plays in effective payments management, and how Nuvei’s strategies have evolved to respond to the changing payment landscape.
Why are payment solutions becoming more important to retail strategies?
We’ve tracked the growing importance of facilitating easy payments. Customers expect a seamless and frictionless shopping experience – where they are in control of their payment method, wherever they are in the world. Today, customers don’t just choose what they buy, they choose how they buy it.
In the fashion industry, retailers and businesses focus on what they do best – the overall retail experience: innovating in design, and strategizing new ways to entice customers to shop. By providing first-class customer experiences, Nuvei helps transform a concerned consumer into someone willing to make a purchase and ensure the success of the last mile of any customer retail experience. You can attract customers via promotions, get them to put something in their checkout cart, but getting them to press the button and make that purchase is basically what makes or breaks a business.
What emerging trends in payments are most relevant to the fashion industry?
Brands should ask themselves, what do they offer by enabling a certain type of transaction method? Take cryptocurrency as an example. It is at the forefront of the minds of companies and customers alike. While everyone wants to offer it, consumers haven’t yet adopted it. Therefore, Nuvei not only increases conversion but helps retailers gain brand image by making selection easier. Currently, brands are playing with the idea of offering crypto or other alternative payment methods, because it says something about you as a brand. The number of transactions you see from it is less important at the moment.
We take the time to delve into the things that are most important to our retail customers: seamless returns and refunds, decline management and acceptance rates.
The second trend is really how consumer behavior dictates existing payment methods. In the UK, for example, it’s all about buy now and pay later. It didn’t exist a decade ago. Now, the majority of fashion brands offer these solutions as down payment. It is attractive to specific product demographics [accessibility] And a way to control spending. It’s no different than PayPal from 20 years ago – the must-have payment method. If you now look at Apple Pay, Google Pay and Samsung Pay, they are all related to convenience. We don’t have to do a lot of authentication – payment can only be done in the background.
We take the time to delve into the things that are most important to our retail customers: seamless returns and refunds, decline management and acceptance rates. For this reason, our clients trust that we always keep their key business drivers in mind.
How do brands and retailers benefit from partnering with a local payment specialist?
Moving into really new markets requires partnering with a company that understands those markets and can help you navigate the payment landscape, the effects on taxes, and all the elements that can lead to a new venture being launched or discontinued, or moving into a new market. Nuvei now offers 500 different payment methods that we can process in over 200 countries – and process locally. If you are Brazilian, you can use the payment methods that are convenient for you – you will not see anything relevant to someone in the Netherlands, and vice versa.
When we build the payments framework that a particular business or market requires, we help [brands and retailers] To build that trust. Customers can select the local payment methods they are familiar with. It’s something consumers consider trivial but important to the business itself.
What new technologies are innovating the transaction for both merchants and end consumers?
Blockchain technology will play exciting roles in payments, both in how we consume and behave. I am a firm believer in NFTs and their use cases. Second, as a company, we believe cryptocurrency is here to stay. This world is complicated – there are only seven stablecoins. Other currencies are very volatile, they are used more as an investment tool than as a payment method.
As consumer behavior gravitates toward specific cryptocurrencies – as evidenced by other payment trends – they will start to appear more consistent. However, they are under a lot of scrutiny regarding their green credentials. The currencies that start gaining momentum will be the ones that stabilize and are backed by green technology. Our single integration platform supports retail brands with options like crypto or buy now, pay later to fit their brand image and be as relevant to their customers as possible.
Why are deeper partnerships important to drive innovation and results?
At Nuvei, we firmly believe in a truly humane approach to our clients’ relationships. Relationship management is an integral part – and it starts even before we even start working with the company. We collaborate to understand the different acceptance rates, how we can improve them, and to understand the clients those companies attract.
It’s an ongoing process, where we have to keep working with merchants to anticipate changes in consumer behaviour. We bring in different experts from different parts of the business to help build the solution and hold their hands through integration, testing, and the live process. From there, our support can range from improving the number of successful transactions to benchmarking against their competitors and against the industry as a whole.
If four or five percent of the population adopts payment methods and you don’t offer them, you are losing them as potential consumers.
Technology, some of which has yet to be discovered, will continue to play a critical role in behavior and consumption. We are focused on what happens next and make sure we are able to implement new payment methods as quickly as possible. It’s key because if four or five percent of the population adopts payment methods and you don’t offer them, you lose them as potential consumers.
Where do you see the growth from payments in the medium term?
Some paradoxical things will start to happen. On the one hand, we will see cohesion, and on the other hand, we will see fragmentation. Standardization will come from companies. For example, we have a wide range of different companies to buy now, pay later. Will they merge while continuing to play the same role in the market? However, we will continue to see retail in the way consumers expect to pay across demographics, markets, and regions. We have to expect it and accept it. Visa and Mastercard are big companies in the UK, but they are not very popular in the Netherlands. You’ll still see specific local payment trends.
The markets are sure to continue to grow in importance. Innovation in the transfer of incoming and outgoing funds will be key, because in this model you should be able to easily pay money, as well as only accept payments. This innovation will surely facilitate more used products, [circular] shopping models.
As a payment technology partner focused on the future, our mission is to offer the next preferred payment method or facilitate the details that matter most to retail consumers.
This is a sponsored feature paid for by Nuvei as part of the BoF Partnership.