Payment leaders fix focus on showing their strategic growth potential to the wider organization.

Payment professionals recognize that their role has become a key growth driver within their organizations. They also understand that securing the budget for upgrading payment technology is crucial for reducing costs, higher margins, and better conversion rates.

However, making the leap often raises the question of whether the wider organization fully appreciates the complete contribution of payments. The challenge, then, is how the function can become more strategic and evolve into an organization-wide growth engine if its full potential isn’t widely recognized.

To determine whether this is merely a gut feeling or a tangible barrier to the department’s future growth, we recently conducted research with 500 payment leaders across five key markets: the UK, the US, France, Singapore, and Australia.

The results are startling regarding the gap between what the payment function can deliver and how it is perceived. 

Three out of four payment professionals report working with company leaders who don’t fully grasp the strategic role of payments within their organizations.

This is concerning at any time, but it is especially troubling given that 89% of payment teams are committed to investing in new technology. 79% believe their payments technology stack needs a complete overhaul.

Nearly 89% believe that orchestration is the new approach they must explore. However, without buy-in from top executives, they will continue to face the persistent challenge of securing the budget necessary to elevate their function to the next level.

The six steps to bridge the payment disconnect

However, the good news is that payment leaders are not complacent. They recognize the need to bridge the gap between what payments can deliver and how they are perceived within their organizations.

As a result, three out of four payment professionals anticipate that payments will become even more important within their organizations over the next five years.

For those seeking guidance on their next steps, the research provides valuable insights and identifies six key actions:

1. Improve knowledge of the payment function across their organization: Payment leaders should actively educate other departments and executives about the strategic value of payments. This could involve organizing workshops, presentations, or internal communications highlighting how effective payment systems can drive revenue, improve customer experience, and support the overall business strategy.
2. Take time to focus on strategic projects: Instead of getting bogged down in routine tasks, payment professionals should focus on initiatives that align with the organization's broader goals where possible. This might include projects that enhance operational efficiency, expand into new markets, or leverage data analytics to optimize payment processes and drive growth.
3. Get leadership buy-in to the value of payments as a strategic growth engine: It’s crucial to demonstrate to top executives how payments can be a key enabler of business growth. This involves presenting clear, data-backed cases that show how investment in payment technologies and processes can lead to increased sales, better customer retention, and competitive advantage.
4. Improve their payment technology: Payment teams should continuously assess and update their technology stack to stay ahead of industry trends and customer expectations. This might mean integrating new payment methods, improving security measures, or adopting AI and machine learning technologies to streamline payment processing and reduce errors.
5. Use buy-in from the wider organization to secure better budgets: With a solid understanding of the payments function and its strategic importance, the broader organization is more likely to support budget requests. Payment leaders should use this buy-in to advocate for the resources needed to implement new technologies, expand their teams, or launch new initiatives that will further enhance their impact.
6. Get support from third-party partners and vendors on payment education: Collaborating with external experts can bring in fresh perspectives and specialized knowledge. Payment leaders should seek partnerships with vendors and consultants who can provide training, share best practices, and offer solutions tailored to their organization's specific needs. This external support can also help bridge any knowledge gaps and ensure the payment function is equipped to meet future challenges.

We can help with wider conversations

Leaders understand where they need to improve their technology to make their functions more strategic. They also recognize the importance of being perceived by the broader organization as focused on driving growth. To achieve this, they need the budget to invest in new technology and to increase headcount. Consequently, they are prioritizing efforts to gain crucial support from other departments.

Interestingly, our research shows that nine out of ten payment leaders are satisfied with their interactions with other departments within their organizations. However, a notable finding is that few payment leaders regularly engage with the C-suite and even fewer work frequently with customer service and marketing teams.

Since payments can significantly influence a customer’s likelihood of converting and having a repeatable, enjoyable experience, this area could be a valuable topic in broader organizational discussions.

A key point payment leaders emphasize is their need for assistance from third parties and payment technology providers to guide these conversations.

At Primer, we have recognized this need, which has been a key driver behind our recent research. We aim to support the company-wide dialogue in shifting the perception of payments from merely facilitating incoming revenue to being recognized as the strategic driver of growth that it truly is.

Which other function can simultaneously reduce costs, boost margins, and secure new sales and loyalty?

See the full research report to learn more about the payment visionaries who are pushing boundaries to drive innovation, efficiency, and growth and positioning payments as a value driver in their organizations.