Drastic changes in spending can impact the way vendors operate and generate a number of new needs on the payment processing side. For organizations selling to businesses and government offices, the most recent quarterly numbers weren't pretty, but vendors shouldn't fret. Instead, this is an opportunity for organizations to invest in payment solutions that allow them to stand out in front of the competition.
Last Friday, the Commerce Department's Bureau of Economic Analysis revealed that real gross domestic product (GDP) in the U.S. grew at a 2.5 percent annual rate in the first quarter of 2013. That number fell below expectations, as some analysts and economists had projected GDP growth to surpass 3 percent. While consumer spending was strong, much of the disappointment stemmed from lackluster performance in both the business and government sector.
Of course, government spending cuts aren't news at this point. The sequester has dominated headlines for a number of months now, with government organizations finding ways to reduce spending in an effort to save money. According to the report, federal government spending dropped 8.4 percent in the quarter, which went a long way toward preventing overall GDP growth to reach the number many people wanted to see.
Meanwhile, business spending posted a respectable number, but it too fell behind consumer activity. Today, companies are still cautious about investments and procurement specialists have to be wary of every single purchase they make.
So what does this mean for vendors? It shows that the market is only getting tighter if there are less potential customers out in the open. It means the competition is going to continue to rise and businesses that cannot find solutions to accommodate their customers will lose out to other vendors. Security is a major concern among government officials and executives alike, so PCI compliance is a must.
Working with a payment solutions provider will help companies obtain the tools needed to be PCI compliant and provide customers with the confidence they need to do business with their organization.