THE METHODOLOGIES POWERING THE PAYMENTS SECTOR

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The payments industry is a fast-paced and multilayered sector.

The payments sector is responsible for facilitating approximately $82 billion in B2C and C2C intraday transactions. And this figure is set to grow, fueled by the fast adoption of digital payment methods in emerging markets.

The ability to deliver a tested solution that caters to the needs of merchants and consumers in cross-border solutions is easier said than done. Payment providers have to apply rigorous testing procedures. Add to the fact high competition and evolving customer demands around accessibility and ease of use, and suddenly the creation and roll out of a payment solution is not a simple exercise.

Professionals in the fintech world are experimenting and applying new methodologies to develop products that improve metrics and lower costs, which will, in turn, increase a business’s competitiveness and revenue. One methodology gaining prominence is the A/B testing model through the application of the HADI framework - Hypothesis, Action, Data, and Insight.

It is a complex approach that SPAYZ.io has first-hand experience with, applying it to different growth plans it is deploying to new jurisdictions around the globe.

Using evidence and data to drive decision making 

The use of testing methodologies that apply causality and inference has traditionally been within the remit of marketing and software development. This is due to the use of hard data and statistics to power software over qualitative insight. While it might not provide the context behind the hypothesis it is analysing, for decision makers ,it is incredibly useful in understanding what will deliver the most success.

At its core, A/B testing is simple. It compares two interface options that aim to deliver the same result. For example, a merchant may want to know which user interface is going to increase the probability of a customer completing a payment transaction on their site.  By assigning its customers one of several interfaces, it can review which ones have the most completed payment transactions and use this information as a basis for a business decision.

A/B testing allows teams to measure the impact of changes through clear metrics like conversion rates. As a quantitative method, the sample size is large, with all changes closely monitored to see how they are impacting results and behaviours. In turn, it reduces the risk by showing the direct impact of a change, as opposed to permanently introducing a new change without properly testing its viability. What’s more, there are further efficiency benefits, meaning businesses can have fast access to business data once a test is completed, with overlapping, parallel tests being run.

The HADI framework injects the scientific rigour into agile development turning by testing into a structured, data-driven process. It begins with a Hypothesis, a belief about what could improve a process, like streamlining mobile checkouts. Actions follow, with targeted, testable changes. Next comes Data, where performance metrics are gathered. Finally, Insights emerge through analysis, guiding informed, iterative improvements. This is a cyclical process, meaning that after an initial test is completed, the data and analytics gathered can be applied to a round of testing that is more refined.

SPAYZ.io is a rising player in the cross-border payment space and has been actively applying these new methodologies as part of its active expansion strategy.

This approach has led to a smoother, more intuitive journey for users using SPAYZ.io’s platform, which is shaped by data rather than assumptions. By standardising interface design, we’ve managed to significantly speed up the development of our solutions, delivering testable versions faster than ever before. We complement this with our hands-on knowledge and expertise of the different markets and jurisdictions, providing insights that give some reasoning into why certain tests have produced certain results.

Pair that with strict code and design reviews driven by real test data, and the result is a noticeable boost in product quality. All this has resulted in a 23% jump in what we call our ‘success rate’, ensuring we can remove minor inconveniences and ensure our clients have access to the best available solutions.

Our experience at SPAYZ.io brings us back to the ultimate importance of this methodology in guiding the future evolution of payments. However, in the fast-moving world of cross-border finance, adopting A/B testing and the HADI cycle requires a mindset shift that challenges legacy thinking and prioritises data-driven business decisions.

In a space where every failed transaction can mean a lost customer, testing isn’t optional. If you’re not testing, you’re guessing. And in this industry, that’s a risk no one can afford to take.

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