Providing financial services to SMEs isn’t easy, largely because of the wide range of businesses that fall into this category. Whether it’s insurance, credit or payments, each SMEs needs are very different.
The frustrations that SMEs encounter when it comes to financial services revolve around being offered only ‘one-size-fits-all’ solutions that aren’t tailored to their particular use cases. For example, SME retailers need payment solutions that enable them to take multiple different payment types, whereas those in the government sector want access to electronic invoicing and purchase orders.
Lack of payment solutions can cost SMEs dearly
This diversity is rarely catered for by the solutions offered by large banks and financial institutions, so many SMEs are forced to build their own infrastructure that matches their unique needs. Building, testing and maintaining these platforms is complex and costly, while ensuring everything meets compliance requirements is also a challenge.
Another issue that SMEs may encounter relates to their level of digital maturity. Many SMEs aren’t fully digital or operate in marketplaces that still rely heavily on cash. A digital onboarding solution is not suited to the needs of a business that still issues paper invoices, while other SMEs may need reconciliation solutions that can deal with both cash and digital wallet payments.
This is why the one-size-fits-all approach isn’t appropriate for meeting the needs of the SME sector. Instead, SMEs need access to comprehensive, cost-effective solutions that match their requirements and include all the features they require, whether loyalty cards, rewards programmes, data analytics or enhanced security features.
Payment solutions that deliver results
There’s a need for a new generation of payment solutions for SMEs that give them access to the functions and features that they’ve never had before. They must be integrated with each other, available for physical and digital services, and enabled with rich analytics and AI to help them develop their products, exploit new opportunities and reduce risk.
For example, more SMEs should be able to issue their own payment cards, either in virtual or physical form. Smaller companies can have greater control over business spending through such schemes, and enable better budget and cashflow management. SMEs also need to be able to accept a wide range of payment methods to cater for all customer use cases and to help their business grow.
Loyalty and reward programmes can enable SMEs to drive more revenue and increase profits. Data analytics and AI solutions linked to payment facilities can help SMEs protect against fraud, as well as identifying gaps in the market for new product and cross-selling opportunities. And while these kinds of payment services for SMEs might sound too good to be true, they do exist.
Paymentology: Providing bespoke payment solutions for SMEs
At Paymentology, we have more than a decade of experience in delivering cost-effective, flexible and full-featured payment solutions for SMEs at all stages of growth across Europe, Africa and the Middle East.
For more information on how Paymentology can help SMEs address their unique challenges, download our SME payments report and get in touch with us today to find out how we can support your SME.
