E-commerce businesses urged to treat payments as profit drivers

Ecommpay is urging eCommerce businesses to shift their approach to payments, positioning it not simply as a necessary expense but as a function capable of generating significant profits. This message comes alongside the publication of research exploring how a strategic focus on payments can contribute to overall business growth and customer experience.

Perceptions shifting

Recent findings highlight a shift in how eCommerce companies perceive payments. More businesses are recognising the potential for payments teams to drive revenue and improve operational efficiency. Rather than viewing the payments function as a back-office cost centre, businesses are now discussing its active role in commercial strategy and customer retention.

Securing executive-level support appears central to this transition. As Arturs Gocs, Chief Operational Officer at Ecommpay, explained, "For too long, payments has been seen as a cost to a business - rather than a revenue generator."

"We found that where perceptions of the payments function's value within the organisation are changed, new revenue streams are unlocked, as well as customer experience enhanced for long-term growth. Gaining internal support appears to be the single biggest factor in turning payments into profit."

C-suite engagement

One of the key findings across the businesses interviewed was the influence of C-suite participation. When senior executives join payment steering committees or dedicated groups, it reportedly accelerates progress and helps payments gain prominence within business strategy. Spotify, for example, treats payments as fundamental to the customer experience and works with external partners to enhance performance.

Blink Pet Food observed a higher return on incremental investments dedicated to the payments function compared to other operational areas. Several companies pointed to outsourcing as a source of efficiency, noting it could lead to 12.5% savings on account-to-account transactions and save 520 hours a year in manual effort.

Technology opportunities

The research also outlines how technology is being used to further increase the value of payments. The application of large language models for fraud detection and dispute resolution has shown the potential to cut false positive rates and identify fraud up to 60% faster. Fee optimisation and intelligent routing could translate into savings of up to 26% on debit card charges.

Cross-border growth

Interviews with payment professionals indicate a strong focus on cross-border transactions as an ongoing priority. Data cited within the findings suggest that cross-border eCommerce is projected to expand at a rate nearly three times faster than overall online business. Experts argue that optimising the payments process is now vital to capturing these new streams of international revenue.

Internal collaboration

Participating businesses described setting up cross-functional groups to examine and optimise every aspect of the payments journey. This approach requires active involvement across departments, including IT, finance and commercial teams, as well as direct input from the top of the organisation. Contributors to the research included Spotify, Blink Pet Food, the Vendorcom payments community and sustainable fashion retailer Finisterre.

Gocs stated, "A wide range of eCommerce retailers were interviewed for our new white paper to discover how they are improving customer experiences and driving profitability through payments. Internal attitudes to payments are being transformed, with many securing C-suite participation and creating cross-functional steering groups to elevate payments internally."