When Warren Buffett talks about anything pertaining to the financial industry, it's best to listen. That's why it was so intriguing to hear his thoughts on the future of payments last week.
On March 20, the multi-billionaire gave an interview, which was shown at the at the launch of the PYMNTS.com Innovation Project at Harvard University. Buffett spoke about the number of drastic changes that have taken place in recent years, many of which have changed the way we buy, sell and pay.
"The pace of change in terms of what customers are doing, how they pay us, how they come to us - it's breathtaking," Buffett said. "Any company that interacts with consumers and thinks that last week's technology and approach is going to work five years from now is probably making a mistake."
Vendors know all about competition. They know that if their customers aren't happy, they will simply go to the next provider of similar products and services. That's why this blog has stressed the importance of implementing payment solutions that offer strong efficiency and security, all geared towards providing a better customer experience.
This comes in a number of forms. For example, offering an eCommerce option to allow customers to buy and pay for products online offers the convenience that will keep them coming back. Additionally, tokenization will go a long way towards solidifying a level of security customers need because it stores data offsite and protects it from targeted attacks.
Of course, while obtaining innovative solutions will help a vendor's presence in the industry, it's still important for merchants to ensure they are optimizing transactional value. So, regardless of what systems a company acquires, they have to promote the processing of level 3 data so vendors can pay the lowest possible interchange rate.