A client-centered approach is especially important during unsettled economic times, Bank of America SVP, Head of Merchant Services Guy Harris writes in the new PYMNTS eBook, “What’s Your Plan? Payments Strategies for a Strong 2022 Finish.”
As we’ve moved past the worst of the pandemic, we’ve entered an unsettling territory of mixed messages. There’s talk of an economic slowdown, but we’re seeing a 10% increase in payments year over year. We’re seeing significant debit/credit spending growth, and it would be easy to attribute it to inflation; however, transaction volumes are also up. Year to date, we’ve seen a 14% increase in total payments, with transactions up 7%. Consumers are making more purchases, not simply paying more for their usual purchases, although there is some measure of that too.
We’re seeing enhanced regulation with the new administration on banks in general, specifically around the payments space. We’re also hearing continued discussions about digital payments, crypto and digital currencies, as well as buy now, pay later. The chatter and debate send mixed signals to businesses of all sizes about what to expect and how to move forward. A large retail client may worry about overstock or whether they’ll continue to grow at the same pace. A small business may wonder if it’ll survive yet another economic storm. Through all this, my team remains focused on delivering our unique proposition to our clients, specifically, rewarding them for their total relationship with Bank of America. We provide them with an important advantage — the ability to manage payments and their banking relationship in one place, which reduces complexity, provides clarity and ultimately gives them time back to run their businesses.
Digital Tools and Insights Guide the Way
We recognize that payments are fundamental to our customers, but they’re just one component of everything clients need to grow their businesses. So it’s important to demonstrate to clients that we understand their challenges and show how the breadth of products and solutions we offer can add value and give them a competitive edge. We continue to help clients add capabilities, like contactless payments and order ahead. We can help them capture fraud without stopping their legitimate customers. We can give clients insights on both the issuing and the acquiring sides. We also help them use digital tools and data to manage their business more efficiently and with more precision. Clients can go online and see exactly what’s happening with their business, and those insights can shield them from some of the uncertainty outside their doors.
Combatting Confusion with Connection
Our client-centered approach isn’t new, but it’s particularly valuable when our customers feel buffeted by the winds around them and unclear about what comes next. It’s at times like these when the relationships we’ve developed prove their worth.
