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Is your payment platform keeping customers from buying?

“When it comes to online commerce, the point at which money changes hands has often been the moment a sale falls apart,” says Kurt Bilafer, Global Vice President Sales and Success at WePay. In his own words, Bilafer gives us some insight on what a customer-intimate payment process looks like (and conversely, what it doesn’t look like).

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When the sale falls apart

“When it comes to online commerce, the point at which money changes hands has often been the moment a sale falls apart,” says Kurt Bilafer, Global Vice President Sales and Success at WePay. How does this happen? Why does this happen? And what can your company do to fix it?

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In his own words below, Bilafer gives us some insight on what a customer-intimate payment process looks like (and conversely, what it doesn’t look like):

Payments: The last mile of online customer intimacy

What was a carefully crafted brand experience becomes off-putting and complicated. There are confusing redirects, forms that clash with the rest of the design, and a lot of sensitive data that needs to be entered.

But that’s now changing, and fast. Innovative companies have stepped up their game, using technologies that make a much easier payment experience possible. That in turn is changing consumer expectations about what a payment transaction should be like.

You now need to bring your payments experience up to this new standard, or risk getting beaten by competitors who do. Why? Because removing barriers for your customers is a hallmark of customer intimacy, and customer intimacy is one of three value disciplines that every company must master to dominate their market. A customer-intimate company has to get to know its customer at a deeper level with every interaction. It must understand what they want and need, sometimes even before they do. Payments are the last mile of customer intimacy.

Come fund me

GoFundMe, the world’s largest crowdfunding site is a great example of a customer intimate company.

GoFundMe’s customers are ordinary people trying to raise money to deal with adversity, support causes they care about, or follow their dreams. They’re accepting donations, but they aren’t traditional nonprofits, or traditional merchants. They want to enable a single campaign to accept payments for a limited time. Asking them to go through the traditional business process of signing up for a merchant account, handing personal financial data, and going through an underwriting process is overkill for what they’re doing, and it puts a big obstacle in their way. They just want to raise money, fast.

At the same time, GoFundMe has another set of customers with a different set of needs: the donors. They don’t have the time or the ability to investigate every campaign to assure it’s on the up and up before they give. And they don’t want to have a bad checkout experience when they’re trying to do a good deed.

GoFundMe gets it. They’ve built the simplest possible onboarding experience, which gets the payments stuff out of the way quickly so fundraisers can start collecting money in minutes. Yet they’ve also built in trust and safety. Behind the scenes, they’re leveraging our risk technology to verify that fundraisers are who they say they are, so that donors can give with confidence.

The way they’ve managed to balance the competing priorities of the two sides of their user base proves they really understand their customers. And that’s the sort of change that’s coming to payments. It’s not acceptable anymore to just move money now. You have to do it in a customer intimate way.

So not intimate

Contrast that experience with the historic way of making payments online using a credit card or PayPal. Credit cards were not designed to be secure in card-not-present transactions, and adding the necessary layers of security makes onboarding hard and checkout tedious.

The big consumer innovation with PayPal was that you could set up an account you could use at a variety of different sites without having to reveal your credit card information. But that adds another account to maintain and another set of passwords to remember–both challenges to customer intimacy.

Another challenge is that when you’ve filled your shopping cart and want to pay, you’re kicked over to a form on another website to complete the transaction, then kicked back to the original website once the transaction has concluded.

The original merchant, who has invested a lot of time and money in getting the customer to that point, loses their consistency of branding and customer experience because they lose control of the customer while the transaction is happening.

As a sales guy I can tell you, that’s a bad way to close a deal. You’re counting on someone else to take care of your hard-won customer. Even if the transaction goes well, the reality is when they’re sent back to your site, their experience is different than before they left. That’s not a customer-intimate payment experience.

With you all the way

In the traditional payment model, if something goes wrong, the customer may not know whom to call. They don’t know if it’s a credit card issue, a PayPal issue or an issue with the site itself. It doesn’t really matter because it reflects on your company. It’s your customer, and you may very well have lost the sale and made them angry.

Even if the customer completes the transaction, there’s still a lot that can go wrong. They think they paid, but don’t get a confirmation email. Or they get a call from the credit card company asking if they really meant to spend that much money. Or the product or service they wanted isn’t delivered. All these scenarios create uncertainty, confusion, and friction — none of which you want associated with your brand or your customer experience.

Customer intimacy isn’t just about making it easy to pay. It’s maintaining security, transparency and accountability across every facet of the experience. It’s making sure you stay close to your customer, and they know it’s you and you’re with them all the way.

Managing the last mile

Payment is not the main objective of any transaction. It’s just the last mile of a decision that has already been made, but it’s a big part of that whole experience. It needs to be valued and curated and managed in the same fashion as the rest of your customer experience.

In the past, customers accepted payment struggles as part of buying online, because that was the industry standard. That standard is rapidly changing as new technology gives companies the ability to extend customer intimacy to payments.

At minimum, you have to make it so payments aren’t part of what the customer is struggling with. But there’s also an opportunity to exceed expectations and use a customer-intimate payment experience as a competitive differentiator. In the platform economy, the companies that understand and execute on that will win.

Bilafer is a sales veteran with more than 20 years of experience in direct sales, channel and partner development and business strategy. Prior to WePay, he was Global Vice President of Sales at SAP, previously serving the company as Vice President of Analytics for Asia, Pacific & Japan and Global Vice President of Business Analytics and Technology solutions, Ecosystem and Channel Partners. He was also SAP North America’s Vice President, heading up enterprise performance and risk management and spent a year with PricewaterhouseCoopers to rebuild their SAP National Practice. Bilafer joined SAP after its acquisition of Pilot Software.

#PositivePaymentExperience

Jenna keeps the machine well-oiled as the Operations Coordinator at The American Genius and The Real Daily. She earned her degree in Spanish at the University of North Texas and when she isn't crossing things off her to-do list, she is finding her center in the clean and spacious aisles of Target or rereading Harry Potter for the billionth time.

Business Finance

7 ways to quickly get outstanding invoices paid to you

(FINANCE) It’s easy to feel uncomfortable bringing up money with your superiors, but for a freelancer, it’s more important than ever to bring up the issue. Here are 7 tips to get your invoices paid quickly.

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For many, an awkward topic of conversation revolves around money. Whether asking for a raise or asking to borrow money, people often feeling uncomfortable when talking money.

This is equally, or possibly even more so, true for freelancers who are solely in charge of their finances. Without a system of weekly direct deposit, freelancers have to work overtime to keep their earnings in order.

The issue with this is that clients also have a lot on their plates, and something as simple as a freelancer’s paycheck is common to fall through the cracks. This causes freelancers to have to work friendly reminders into their repertoire.

However, freelancers may not always be knowledgeable of the best ways to keep their finances in check (no pun intended). Below are seven ways to enhance payment methods.

  1. You have to be willing to make billing a priority. Due to the fact that money is awkward to talk about, as aforementioned, many let this fall by the wayside. The best way to do this is to keep up to date with your invoices and send them as soon as they are done. Making a calendar specific for billing can help with this idea.
  2. This second bit dates back to when we were young and learning our manners: it is crucial to be polite. Not only is it the right thing to do, but it also increases speed in payment. Using “please” and “thank you” in invoicing emails are said to get you paid five percent faster.
  3. It is best to try and keep a complicated concept like finance as simple as possible. Make sure you are creating specific due dates. This will help to signify importance of payment.
  4. Now that virtually anything can be done online, it would make sense to use electronic payment verses an old-school check. Accepting online payments will get a user paid, on average, eight days faster as opposed to a check.
  5. This is an important notion to keep in mind for any aspect of your business life: be professional. Invoices are often seen by many eyes so it is best to include your business’s logo on said invoice. This has been found to increase chances of being paid on time by 10 percent.
  6. Specificity is urged again in the form of transparency. Make sure you are giving detailed descriptions on each invoice so that anyone looking at it knows exactly what you are being paid for. By doing this, you are 15 percent more likely to be paid on time.
  7. While you may be invoicing month by month, try to avoid sending on the 30th or 31st. Being that everyone, generally, sends their invoices in on these dates, it takes 10 – 20 percent longer to be paid. With everyone sending it at the end of the month, it has a tendency to back up payroll.

The most important thing to remember is that while the topic of money may be awkward, it is your money. If you let a few invoices fall behind because you are uncomfortable reminding your client, this has a way of adding up. Be sure to keep on track with your finances to earn what you are working for.

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Business Finance

How to invest in cryptocurrency without getting in trouble with the IRS

(FINANCE) Paying taxes on your cryptocurrency investments doesn’t have to be a headache with this simple tool.

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token tax for cryptocurrency capital gains

The next tax season will inevitably approach, and those of you who took a chance on cryptocurrency may be wondering: Do I have to pay tax on my digital investments? Sorry, but yes you do.

Although tax laws are constantly changing, especially in the wild west of cryptocurrency, fear not. Token Tax is the one tool to rule them all, and can help you report cryptocurrency taxes.

In this past year, cryptocurrency investment has skyrocketed. The total market cap rose over 1000 percent, even breaking a record and climbing over $600 billion in December.

Coinbase, the most popular online platform for buying and selling digital currency, gained one million users in one month alone.

Cyrptocurrency’s increasing popularity led to changes in IRS rules.

Although cryptocurrency investors were previously able to use the “like-kind” tax code exemption, the IRS now says digital investments must be taxed as short and long-term capital gains.

Back in 2015, only 802 Americans reported Bitcoin related gains and losses. At the time, cryptocurrency could technically be categorized a property instead of income. The 2017-18 year should show a greater increase in reports due to the new IRS regulations.

It can be difficult to determine how to report your taxes, and many other available tools victimize you with information overload. Understanding your tax liability is no fun at all, but it’s not something you’d want to get wrong unless tax jail sounds exciting.

The newly minted Token Tax does the work for you, integrating directly with Coinbase’s API to import all your investments in an easy to read format that’s directly exportable to the IRS. Kraken, Bittrex, and GDAX are also securely integrated with the platform.

Using FIFO, Token Tax calculates your tax liability and displays it in an easy to read interface. You can then export a fill-out 8949 form directly to your accountant or the IRS for review.

Creators Alex Miles and David Holland Lee say they believe Token tax “could be the TurboTax for crypto.”

Even though Token Tax is still in test mode, not even beta, it caught our attention by winning first place overall in Product Hunt’s Global Hackathon.

If you have invested in cryptocurrency and want to get ahead of the curve for tax season, check out their demo and see for yourself.

This story was first featured here in January of 2018.

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Business Finance

Facebook is raising funds to launch a cryptocurrency #ThanksIHateIt

(BUSINESS FINANCE) Love or hate Facebook, their choices often lead the path and dictate what is normal for business, so what does their potential cyrptocurrency mean for you?

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facebook cryptocurrency

The promises of blockchain have circulated throughout the Internet for several years and Facebook is now getting into the game. It’s not exactly a bleeding edge move, but could eventually be a move that impacts the business world.

Since blockchain is a secure system of handling two-party transactions, what does it mean for businesses if Facebook utilizes this tech for their own cryptocurrency? The company is currently seeking to raise $1 billion for this cryptocurrency endeavor.

Facebook has been researching and experimenting with digital currency tech for some time according to CB Insights. Should this interest continue, how long before we see the rise of FaceCoin? Additionally, what would this mean for the rest of us?

Since Facebook is one of the most used identity layers for nearly 2.5 billion users, its “single sign-in” system creates a universal access point for users to login to other sites.

Here are just several of the possible implementations if the company adopts blockchain cryptocurrency:

  • Micropayments for content creators and services
  • Banking apps (a branchless challenger bank)
  • Identity technology (decentralized apps could use a Facebook login)
  • FaceCoin incentives for e-commerce
  • And unfortunately, illegal activities

Mass implementation of what we’re guessing will be called FaceCoin will bring all users and anyone who interacts with a Facebook-related platform into this system.

The benefits are seamless transactions and cross-platform movement for businesses. However, this could rattle the digital payment industry across the globe as users have their Facebook identities tied to their FaceCoin wallets. L

ikewise, stablecoins will become easier to use with Facebook’s hat in the cryptocurrency ring. Mainstream popularity, anyone?

If FaceCoin is the future, e-commerce will get sucked in.

Businesses should be keeping a close eye on this development—US dollar-pegged cryptocurrencies are already growing rapidly, regardless. These projects bring new services and products to the global market.

If Facebook ends up in the crypto game, it’s likely many others will follow suit.

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