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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

How to invest in any cryptocurrency without the IRS hunting you down

(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

As the 2018 tax season approaches, 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.

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Business Finance

Crypto gets trendy – earn digital currency for taking steps

(FINANCE) Crypto is on exciting, not just with values skyrocketing and falling from day to day, but with new ways to earn and invest.

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fitness tracker sweatcoin crypto

If investing actual money into cryptocurrency isn’t your thing, consider investing calories instead. Sweatcoin — a free app for iOS and Android devices — allows you to do just that.

The premise behind Sweatcoin is simple: you earn virtual currency for a certain number of steps. When you’ve earned a certain amount, you can redeem your Sweatcoin earnings for a number of different rewards, including things like vouchers for yoga classes, fitness apparel, and Apple products (e.g., an Apple watch or a new iPhone).

In order to begin earning with Sweatcoin, you just need to install the app, turn it on in the background, and start walking. This means that you’ll need the app running for the duration of your workout, so make sure that your battery is charged and that you’ve allowed the app to access your location services before heading out into the great unknown that is your cul-de-sac.

There are a couple of minor caveats for Sweatcoin, the first of which is its overhead fee.

While you don’t have to pay to use Sweatcoin, you’ll only “take home” around 65 percent of what you earn. This is in part due to Sweatcoin’s fraud prevention services, so it’s for a good cause — just don’t count your virtual chickens before they compile.

Another issue with Sweatcoin is that it only counts your steps when you’re outside. If your preferred method of walking, running, or skipping (if that’s your thing) involves a treadmill, you’ll need a pretty long extension cable.

The final caveat is that, unlike other cryptocurrency like Bitcoin or Ethereum, your earnings won’t compound. Sweatcoin is contingent solely on your activity, not on market behavior or current investments; if you’re looking to build up a crypto portfolio, this probably isn’t the ideal venue for you.

Of course, your body is perhaps the strongest asset that you can own, and investing in it is more likely to have serious long-term benefits than is investing in any kind of cryptocurrency. This is the largest benefit of Sweatcoin: it incentivizes you to work out and take extra steps (literally) long enough for doing so to become a habit. That’s hardly a downside.

If you don’t mind an extra few (thousand) steps per day, Sweatcoin is worth checking out.

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Business Finance

Freelancers: How to stop billing hourly and get the cash monies you deserve

Working as a freelancer isn’t easy. Despite the hard work, many professionals choose this route in order to escape the daily grind of working for an hourly wage. Why, then, do clients still insist that freelancers charge them by the hour?

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Value-based billing

Working as a freelancer isn’t easy. Despite the hard work, many professionals choose this route in order to escape the daily grind of working for an hourly wage. Why, then, do clients still insist that freelancers charge them by the hour?

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You became a freelancer to get away from the mindset that each hour of your time is worth a certain number of dollars. So if you are still billing your clients an hourly wage, you may want to seriously consider shifting to value-based billing.

Each hour is not worth the same amount

Robb Eng, a senior marketer and writer for Web Design Ledger, provides some valuable advice for freelance web designers, but his tips hold up for any freelancer who would like to get free from “the trap of trading hours for dollars.”

First, Eng describes some of the problems with billing by the hour – and if you’re already doing it, these should sound familiar to you. For starters, each job requires a number of different skillsets. Some parts of the job require intense concentration and all your years of experience and education. Other parts any amateur could do in their sleep.

Averaging these disparities out into an hourly wage is tricky – and billing different rates for different tasks is far too burdensome.

Besides being confusing and inconvenient, the biggest problem with hourly billing is that it causes the client to focus too much on how fast you can deliver the task, rather than how well.

Quantify your goals

That’s why it’s so important to shift the paradigm to one of “value-based billing.” As a freelancer, you must show the client the value of your services – in other words, how they will benefit the business. Eng gives an example of a website redesign that could increase profitability by $100,000. When you think about the total value your work will bring to the business, suddenly charging $10,000 or $20,000 looks like only a small fraction of the total value you are providing.

When you asked to be paid relative to the total value you are providing from the business, it changes your role from wage worker to co-collaborator.

Instead of stressing about the bottom line, you are working together with the client to maximize profit for both parties.

To convince hourly billers to switch to value-based billing, you may have to ask some questions. As much as possible, get an idea of the quantifiable goals of the project. How much will the project increase profit, lead generation, or conversions? Try to charge between 10 and 20 percent of the value you’ll be providing for the client.

Price plans and tiers

Next, offer a few different price plans, because people love options. You can charge a flat rate for each service, a monthly or yearly rate for ongoing maintenance, or you can provide several tiers of services at different rates.

Of course, before you get to these steps you’ll need to find out if your client is open to value-based billing. If not, consider walking. If so, be sure to maintain positive relationships. Nothing adds value to a job like a trusting relationship.

#NoMoreHourlyWages

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