Turning payments into revenue

Today’s high inflationary environment is pressuring even the largest and most profitable businesses. That is only magnified for startups and small- to medium-sized businesses.  

At the same time, the Covid pandemic accelerated the digitalization of payments, which increased to 82% from 60% just in the past three years to grow to $1.8 trillion in value. As merchants see digital payments increase, they also see the amount they spend on processing payments, which ranges from 1.5-5% per transaction, cut into their bottom line.

According to Nabi Awada, Founder and CEO of Lynk, that doesn’t have to be the case. In the most recent episode of The Interchange podcast Awada and host Daniel Nielsen, Lynk’s VP of Growth, discussed the changing payment landscape and how businesses can use Lynk to put the rise in cashless payments to work for them.

Using a slice of pizza as an analogy, Awada said by the time the merchant gets its slice, it has 10 bites taken out of it and it’s about a week old and ice cold when a customer makes a traditional payment using a credit or debit card. This is what merchants increasingly deal with everyday with traditional payment platforms.

Lynk’s Pay by Bank offers a secure payment and card issuance solution that reduces processing fees by as much as 90% and provides merchants immediate access to their revenue. So that same slice of pizza is delivered nearly whole and it's still hot. 

Addressing the current high inflationary environment, which is squeezing businesses large and small. Awada said although consumers don’t believe there’s a cost associated with using a debit or credit card to make a purchase, merchants often have little choice but to pass those costs onto their customers in the form of higher prices.  He also noted recently enacted regulatory changes in Canada, which are being considered in the U.S., allow merchants to pass processing fees directly to the consumer. 

A combination of the growing cashless payments, antiquated banking systems and changing regulatory environment all served as the impetus for Lynk to look at payments differently. In Awada’s words, “what if we don’t look at payments as a cost center, but as a revenue generator?”

It’s with this lens that Pay by Bank was created. In addition to providing a secure and compliant payment platform that provides merchants immediate access to their funds, Pay by Bank can be used to build customer loyalty and drive revenue. Unlike credit card rewards programs that merchants fund, but don’t recognize any benefit, Pay by Bank allows merchants to invest some of the savings on processing fees into their own reward programs that build customer loyalty. 

With Pay by Bank’s dashboard, merchants are able to tailor rewards to each customer’s purchasing patterns, creating a more personalized consumer experience.

“If I go to a cafe and get a croissant every time and every five orders I’m rewarded with a cup of coffee, what benefit is that to me?” Awada said. “If I went there and they said, ‘hey you ordered three croissants, enjoy the fourth one for free,’ that tells me I’m appreciated and grows my affinity for the brand.”

Pay by Bank isn’t meant to replace a merchant’s existing payment solution, but rather work alongside them. “Our product is meant to sit next to existing payment solutions. Pay by Bank is fundamentally different from other card platforms, and it’s based on rewards and incentives.”

Awada believes that just as business owners take time to ensure their products are competitive, it's important to stay on top of the payment regulations and innovations, and make adjustments that can help your business grow. He encourages those business leaders looking to stay ahead of the curve to learn more about Lynk to schedule a demo or sign up for the Pay by Bank waitlist at www.trylynk.com/waitlist.