Financial Services
Optimising payment processing for speed and security
Global economies are experiencing a rapid shift to digital transactions, transforming the way businesses handle payments. The total transaction value in digital payments is set to grow from $20.37 trillion to $36.75 trillion between 2025 and 2029 at a CAGR of 15.9%. Traditional payment processing methods are not sufficient to keep up with this volume, meet the evolving expectations of customers, or keep up with the demands of modern e-commerce.
As businesses transition from paper-based systems to digital platforms, simply automating transactional operations is not enough. With experts estimating the global digital payments market to grow from $137.43 billion in 2025 to $198.99 billion in 2029 at a CAGR of 9.7%, businesses must focus on driving efficiency, enhancing customer experience, and minimising operational costs with secure, real-time payment processing.
Understanding payment processing optimisation
Optimising payment processing goes beyond mere digitisation. Businesses must streamline their systems to reduce manual interventions, accelerate transaction processing timelines, and integrate various payment methods seamlessly. The key components and features of such optimised and secure payment processing systems include:
- Self-service payment portals: Enhancing customer experience by providing on-demand access to payment options.
- Bank payment networks: Ensuring smooth transitions between different financial institutions.
- Automated reconciliation: Reducing discrepancies and improving financial accuracy.
- Fraud detection mechanism: Strengthening security with proactive payment fraud detection.
- Advanced analytics: Providing real-time insights to optimise payment strategies.
- Regulatory compliance: Ensuring adherence to evolving global financial regulations.
Ten strategies to optimise real-time payment processing
A structured approach is necessary to enhance real-time payment processing. Businesses must focus on security, efficiency, and compliance to achieve seamless transactions. Here are some strategies that can help businesses significantly improve their payment performance and ensure secure payment processing:
Streamline the checkout experience
A complex checkout process can often deter customers and lead to abandoned transactions. Taking steps, such as simplifying the interface, minimising form fields, and offering guest checkout options can help enhance user experience.
Offer diverse payment options
Customers today expect multiple payment choices, from credit or debit cards and bank transfers to mobile wallets and cryptocurrencies. Offering diverse payment options increases conversions and improves customer satisfaction.
Strengthen fraud prevention measures
Implementing AI-driven payment fraud detection, multi-factor authentication, and tokenisation are key to preventing unauthorised transactions. Monitoring transaction patterns can help detect any anomalies in real time and ensure secure payment processing.
Automate payment processes
Manual interventions can often lead to inefficiencies and errors. Automating certain processes, such as invoicing, recurring payments, and payment reminders simplify real-time payment processing, thus ensuring timely transactions and reduced processing delays.
Reduce Days Sales Outstanding (DSO)
Strategies such as early payment incentives, optimised invoicing schedules, and automated payment reminders can help optimise the overall payment processing and reduce DSO, which can negatively impact cash flow without due consideration.
Ensure regulatory compliance
Automating compliance checks and staying updated on global payment standards is necessary not only to safeguard businesses from legal complications but also to ensure seamless, secure payment processing.
Integrate payments into back-office systems
Connecting payment systems with ERP and other accounting software can offer real-time visibility to enhance operational efficiency. Such integration not only facilitates real-time payment processing but also streamlines reconciliation and reporting processes.
Scale payment infrastructure
As businesses grow, payment processing systems must scale accordingly as well. Managed or outsourced payment service providers can help ensure adaptability to increasing transaction volumes and evolving market dynamics.
Leverage bank payment networks
Managing e-payments through established banking networks can help streamline payment processing through enhanced payment fraud detection, transaction security, and liquidity management.
Perform regular system updates
Regular system updates and transaction audits can help identify potential discrepancies early, prevent key system vulnerabilities, reduce the risk of breaches, and ensure optimal performance with secure payment processing.
Optimising real-time payment processing requires extensive expertise and robust financial solutions. Infosys BPM offers comprehensive financial and payment processing services, helping businesses leverage next-gen technology to implement process automation, security enhancements, and seamless payment integration. From payment fraud detection to compliance management, Infosys BPM ensures businesses achieve efficiency while ensuring compliant and secure payment processing.
Conclusion
As digital payments continue to dominate global commerce, businesses must prioritise real-time, secure payment processing to be competitive. From streamlining checkout processes to integrating with back-office systems, a well-optimised payment processing system enhances efficiency, reduces costs, and ensures payment fraud detection and prevention. By implementing robust payment optimisation strategies, businesses can drive financial performance and deliver a seamless payment experience to customers.
