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How to Make a Payments Experience Drive Loyalty

Posted on by Rachael Shupe
Lady on the lounge using her tablet and paying for something with her card.

Did you know that, according to a recent report from Xero, 25% of consumers would visit another business if their preferred payment method wasn’t available? These days, payments are more than just transactions – they are make-or-break moments for customer retention.

The importance of consumer-centred payment systems was a key theme at Cuscal’s Curious Thinkers 2024 event. The panel highlighted why businesses must rethink their payment systems to align with consumer expectations and offer seamless, secure, and flexible options.

Below, we explore the shifting landscape of consumer payments, why businesses must prioritise a consumer-centred approach, and steps they can take to enhance the payment experience for their customers.

Meeting Consumer Expectations: The Changing Payments Landscape
Consumers today expect more choice, transparency, and security in their payment interactions. The rise of digital wallets, real-time payments, and buy-now-pay-later (BNPL) solutions reflect this demand.

The report from Xero on how businesses and consumers are making and taking payments found that:

  • 38% of consumers experience frustration when their preferred payment method isn’t available.
  • 26% cite limited payment options as a reason for dissatisfaction.
  • 25% would visit another business that accepts more payment methods.

These statistics underscore the need for businesses to offer diverse, frictionless payment options to meet evolving consumer expectations.

Beyond Transactions: Why Payment Experience Matters
Have you ever abandoned a purchase because the checkout process was too complicated or a payment option you preferred wasn’t available?

Payments are an essential touchpoint in the purchase process that can influence customer satisfaction and brand perception, for better or worse. Whether it’s a quick tap at a café or a major online purchase, a seamless payment experience can foster trust and build loyalty.

The rapid growth of e-commerce has been a major driver of this shift. Take Amazon, for example. Its one-click payment system revolutionised online shopping by eliminating unnecessary steps and reducing checkout friction. Similarly, Apple Pay and Google PayTM have redefined mobile transactions by allowing secure, instant payments with minimal effort.

Consumers accustomed to fast and frictionless online payments expect the same convenience across all channels. For businesses, this means:

  • Delivering on speed and simplicity: Customers expect fast and intuitive transactions.
  • Ensuring security and privacy to build trust: Clear authentication measures without unnecessary hurdles.
  • Offering choice and flexibility: Multiple payment options to cater to different preferences.
  • Managing complexity: Ensuring smooth integration and efficient backend systems while offering more payment options.

How Businesses Can Create Better Payment Experiences
Developing a consumer-centred payment system requires practical steps and thoughtful strategies. Below are recommendations from Cuscal’s Head of Payments & Innovation, Nathan Churchward, on how businesses can create a better payment experience for customers.

Know Your Customers, Meet Their Needs
Businesses must assess their customers’ behaviour and preferences to tailor payment solutions. Different demographics and business types have unique payment needs, so offering a one-size-fits-all solution may not be effective. Local payment providers can offer practical solutions to help businesses choose the best payment options for their customers.

Listening to consumer feedback is also key. Understanding and addressing pain points in the payment journey helps refine strategies, improve the experience, and build trust with customers.

Make Payments Effortless and Secure
A great payment experience should be both effortless and secure. Tokenisation helps by reducing the number of times customers need to enter their card details, making transactions smoother while keeping data safe. Digital wallets like Apple Pay simplify the process even further, allowing for fast, secure payments with a single tap. The best solutions remove friction and enhance security without adding extra steps.

Empower Customers Through Information
Customers feel more confident when they understand how different payment options work and what benefits they offer. Businesses that educate customers on their choices (especially when encouraging a preferred payment method) build trust and transparency.

If using surcharges to guide payment decisions, pairing them with clear explanations ensures customers see the value rather than just the cost. It’s also important to reassure customers about security, especially for prepaid services or payments made in advance, by highlighting measures in place to protect their funds.

Seamless Payments, Streamlined Experience
Payments should work in real-time and integrate seamlessly into business operations. Traditionally, card payments have led the way in integration and instant processing, but newer options like NPP and PayTo are catching up. The challenge has been ensuring these payment types update systems in real-time for smoother reconciliation and automation.

Businesses should seek payment providers that offer real-time payment APIs to maintain efficiency without compromise. PayTo, for example, enhances integration by eliminating the need for customers to manually enter details, allowing businesses to pass transaction data directly to the customer’s bank for easy authorisation. The right payment solutions should support automation, reduce manual processing, and improve the overall payment experience for both businesses and customers.

Prioritising Consumer Needs for Long-Term Success
A truly consumer-centred payment system goes beyond technology. It requires a deep understanding of customer behaviour, a commitment to security, and an effort to educate users. Businesses that align their payment strategies with consumer needs will enhance customer satisfaction and drive loyalty and long-term growth.

By investing in seamless, secure, and flexible payment solutions, businesses can transform payments from a transaction into a competitive advantage.

References
ANZ Subject Matter Experts 2024, ‘The digital payment revolution: what businesses need to know’, ANZ Insights website, article, 6 November 2024, article, accessed 17 February 2025, <https://www.anz.com/institutional/insights/articles/2024-10/the-digital-payment-revolution>

ANZ Worldline 2024, ‘Why Chief Market Officers should prioritise their payment strategy Part I’, ANZ Worldline website, article, 9 September 2022, accessed 17 February 2025, <https://anzworldline.com.au/en/home/knowledge-hub/blogs/why-chief-market-officers-should-prioritise-their-payment-strate>

Xero 2024, ‘I want to pay that way’, Xero website, report, 2024, accessed 17 February 2025, <http://www.xero.com/campaign/i-want-to-pay-that-way>

Knowledge at Wharton Staff 2017, ‘Why Amazon’s ‘1-Click’ Ordering Was a Game Changer’, Knowledge at Wharton website, podcast and article, 14 September 2017, accessed 11 March 2025, <https://knowledge.wharton.upenn.edu/podcast/knowledge-at-wharton-podcast/amazons-1-click-goes-off-patent>

Google Pay is a trademark of Google LLC.
Apple Pay is a trademark of Apple Inc., registered in the U.S. and other countries.

Important Information: Information in this article is current as at 14 March 2025 and is subject to change. This article is provided for general information purposes only and does not have regard to the situation or needs of any reader and must not be relied upon as advice. Before acting on this information, consider its appropriateness to your business Cuscal Limited ABN 95 087 822 455.

Global Economic Outlook

Posted on by Rachael Shupe

Simon Baptist, Visa Principal Economist for Asia Pacific caught up with Bronwyn Yam, Cuscal Chief Product Officer in Sydney to discuss the global economic outlook and how it may impact the Australian economy.

They discuss:

  • the key factors that are driving the economy,
  • the themes for the year ahead,
  • shifts in trade in the Asia Pacific,
  • how the US election and tourism could impact Australia and
  • how new technology and Gen Z may affect payments in the future.

Watch Simon Baptist share his knowledge and insights for 2024 with Bronwyn Yam.

The Voice of Payments

Posted on by Uberbrand

Virtual assistants are changing the way people shop, bank and interact with businesses. From chatbots to voice assistants, businesses and their customers are seeing the benefits of automating and simplifying transactions and interactions.

Learn more about voice assistants and other innovations driving change in payments around the world in the Global Payments Innovation Playbook which we produced in collaboration with PYMNTS.

Cuscal Curious Thinkers 2018 Showreel

Posted on by Uberbrand

Held on 24 & 25 September 2018 in Sydney, the inaugural Cuscal client conference “Curious Thinkers” was a journey through innovation, thought leadership, product solutions and more to inspire ideas and thinking for the future of payments.

This video gives a visual summary of the conference, which featured an exceptional line up of international and local thought leaders and experts including: – Dr Leda Glyptis (Chief of Staff, 11:FS) – Nuno Sebastiao (CEO, Feedzai) – Steven Bankston (Senior Director Product Development, Visa) – Stephen Scheeler (The Digital CEO) – Charlotte Rush (Innovation consultant, Inventium) – Rocky Scopelliti (Futurologist and Author) – Scott Farrell (Partner, KWM) and many more.

We would like to thank all our sponsors for their support; eftpos, feedzai, ACI Worldwide, BPAY Group, CA Technologies, Data Action, Kony, Macarthur Print & Ultradata.

P&N Bank launches instant digital cards

Posted on by Uberbrand

People using mobile phones

P&N Bank is Cuscal’s first client to launch instant digital cards, using the Cuscal Virtual Card API set. The APIs allow companies to provide their customers with new or replacement digital cards into their mobile wallet within seconds. Without a digital version of the card, customers can be without access to their money for days or even weeks.

Cuscal’s Virtual Card APIs are the most comprehensive instant card issuance solution in Australia. No other financial institution in Australia currently provides instant card issuance for new and replacement cards and gives its customers access to the full virtual card to allow online payments.

Instant access to the full card number is particularly useful as it not only allows customers to pay for things in person, but also buy things online. This is particularly useful for customers who are travelling and their cards are lost or stolen. They can simply log into their mobile banking application or internet banking, order a new card and continue their holiday uninterrupted.

Cuscal Head of EFT, Acquiring and Digital Lauren McCormack said Cuscal was thrilled to have been able to help P&N Bank deliver this great advancement to its mobile and digital banking capability.

“We see it as a real win-win for both P&N and its customers, saving time and money for everyone involved. We also hope that it will help P&N Bank customers get access to their money more quickly and easily in those awful, stressful situations we all find ourselves in when our cards are lost or stolen,” she said.

Not only does instant card issuance have great customer benefits, it is also very useful for financial institutions and other companies that issue cards. They can save money by not needing to physically mail out PINs to their customers and also start earning revenue sooner by giving customers quicker access to their money. In the future, companies may decide to save even more money by not issuing physical cards at all.

Financial institutions and their customers can realise even greater benefits if they combine Cuscal’s Virtual Card API with the Card Control API. Financial institutions can decide to enable controls on a card (eg restricting spend for instore/contactless payments) until the physical card has arrived with the customer. This reduces the chance of someone intercepting a card while in the mail and then being able to make fraudulent payments.

Cuscal’s solution currently works for Visa and eftpos credit, debit and prepaid cards. Cards can be ‘provisioned’ (enabled in a mobile wallet) to Apple Pay, Google Pay and Samsung Pay. The solution also works for any cards making payments via eftpos and Visa, companies do not need to be current clients of Cuscal to make use of the API’s capabilities.

Cuscal hits female leadership targets

Posted on by Uberbrand

Cuscal's female leadership with MD Craig Kennedy

A gradual increase in the number of senior female appointments in recent years has helped Cuscal to hit its target of 40% of senior leadership roles to be held by women.

In May this year Helen Mediati, Cuscal’s General Counsel and Company Secretary was appointed to Cuscal’s Leadership Team. This followed the appointment of Bianca Bates to the role of Chief Client Officer, earlier the same month. Cuscal’s Managing Director, Craig Kennedy, says it has been a deliberate part of Cuscal’s long-term strategy:

“Cuscal is a payments company which straddles the worlds of technology and banking, both industries which struggle with gender diversity and female leadership.

We knew that having greater gender balance in our leadership would help make us a stronger, fairer, better company, so we have been working towards a goal of greater senior female leadership for a few years now. Three out of seven of my Leadership Team are now women (43%) and this ratio is consistent throughout leadership positions at Cuscal.

We know there’s still some way to go, for example our diversity at Board level isn’t what we would like it to be, but we’re pleased to hit this target and now need to maintain or improve it.”

Cuscal has employed a range of initiatives to improve diversity, female employment and leadership at Cuscal which include:

  • Creating a Women’s Initiative Network three years ago and then a Diversity and Inclusion Council
  • Mandating that recruiters include at least one suitably qualified female applicant for each role
  • Trialling blind resumes in the project and technology division
  • Reviewing our flexibility policies to ensure consistency in application
  • Extending paid paternity leave from one week to four weeks.

As of May 2018, Cuscal’s ratio of male/female employees was:

  • Board: 13% female, 87% male
  • Leadership Team: 43% female, 57% male
  • All employees: 40% female, 60% male

Pictured L to R: Bianca Bates, Craig Kennedy, Helen Mediati, Christie Welsh

Fraud and AI: what you need to know

Posted on by Uberbrand

Artificial Intelligence (AI) is already having a significant impact on the way we do business today. From helpful chat bots guiding us through complex purchase journeys to detecting potentially fraudulent payments, AI has the potential to create seamless customer experiences while simultaneously processing large amounts of information.

Machine learning frees humans from the grunt work of data tracking and pattern analysis – it’s faster, more scalable and learns from past information. No wonder Gartner predicts that more than 40% of data science tasks will be automated by 2020.

So when it comes to balancing customer demand for real-time payments with secure fraud-mitigating authentication, AI is an effective enabling tool for fraud teams to focus their investigation skills in the best place to securely ensure the speed and rigour required for a real-time payment. And that’s why more organisations are exploring the use of AI, especially in the area of fraud.

What role could AI play in fraud prevention and detection?

Through machine learning, the complexity of big data really becomes useful. At Cuscal, we have partnered with Feedzai to provide an advanced risk management platform that will be core to protecting Cuscal clients from the evolving threat of fraud.

“When using Feedzai, banks have significantly improved fraud detection, reduced false positives and overall a better customer experience – outperforming leading non-AI solutions – that’s why banks like Citi and Capital One have backed Feedzai’s technology.” said Richard Harris, SVP Sales International from Feedzai.”

With so many more payment channels available – online, mobile, P2P – there are more points of vulnerability. More than ever, we need a complete view of customer activity across products, an integration of channels to improve the customer experience, and to make more data-backed business decisions.

How will AI strengthen existing fraud protection systems?

With AI’s ability to analyse complex data in real time, fraud teams are better equipped to predict fraud before it occurs and so minimise losses.  AI reduces some of the noise of large amounts of data to focus on the real threats.  As we prepare to launch the New Payments Platform (NPP) in Australia, we can expect to see digital transaction processing converge with analytics providing better insights. Machine learning will enable organisations to look at more data, from more sources, and make better predictions with less uncertainty.

Of course, bots could be working on both sides – and the next generation of AI-enabled fraud systems will also need to be prepared to tackle new and increasingly sophisticated fraud attempts and scams.

Every Australian financial institution connecting to the New Payments Platform (NPP) needs to consider their real-time fraud monitoring and ensure effective controls are in place. AI is likely to underpin best practice – checking every transaction in real time for anomalies and flagging suspicious activity for action by experienced fraud investigation teams.

Learn more about preventing fraud in a real-time world.

Fraud prevention: then and now

Fraud & AI Infographic

Learn more about preventing fraud in a real-time world.

By Michelle Trundle, Senior Manager, Fraud