Value-added services: The untapped advantage in PSP (Payment Service Provider) differentiation

Value-Added Services (VAS) are rising in importance in the B2B payment sector. With businesses focusing on building “sticky” merchant relationships, reducing churn, and moving beyond commoditised transaction revenue, VAS are an emerging necessity to tick those boxes, whilst adding to the bottom line. Protect Group’s USP as a B2B PSP is its product, Refund Protect (RP), which offers businesses a trusted VAS by providing customers with an upgraded, refundable ticket.

The importance of long-lasting relationships

Long-lasting relationships built on trust are key components behind a successful business. According to a recent Dale Carnedie study, 73% of respondents indicated that trust is “very” or “extremely” important to them for building relationships with salespeople, businesses or brands. 

While, yes, customers are still price-conscious, an established and trustworthy relationship plays a critical role in returning customers, long-term profitable sales, and positive customer reviews.

According to Team Rivo’s statistics, it is far cheaper to retain existing customers than to acquire new ones. Additionally, 61% of customers would switch to a competitor after just one poor customer service experience.

In the payment sector, trust is often based on personality, as transactions can be heavily automated or AI-generated, and honesty is crucial when hidden clauses are standard.

Building value in relationships 

To build these trusting relationships, value-added services are becoming increasingly important, especially after COVID-19, when most transactions are now based on price as origins, features, and USPs are similar among competitors. 

The banking industry boasts a 75% customer retention rate, largely due to the trust and long-term relationships that are typical in this sector. According to research by Zima, value-added services in the banking industry have become more widespread and essential in customer satisfaction. Due to the shift towards online and mobile banking, banks have begun to explore new areas to enhance the customer experience and foster lasting relationships, such as commercial offers and loyalty programs. 

Banks are looking at what their customers want beyond the initial transaction, which fosters a trusting relationship and, in turn, enhances customer retention.

Refund Protect: The untapped advantage 

According to a study by Firework, 96% of customers will leave a brand after experiencing poor customer service, emphasising the importance of excellent service for retention. Refund Protect is the trust-building, value-added service that businesses can rely on and return to again and again.

Protect Group’s philosophy is ‘life happens’. Refund Protect is based on this ideal, where life’s unexpected moments are made stress-free. Customers can upgrade their terms towards the end of their payment journey, which appears as a seamless addition to the original product.

With the upgrade, tickets are fully refundable so that in emergency situations, they’re protected. Whether that’s a broken-down car, a family emergency or sick or lost pets, if the customer can provide evidence of their genuine reason, then a refund can be given. It is unlike CFAR, where there are often hidden clauses, such as ‘no cancellation within 24-48 hours’ or partial repayment over a fully refundable period. 

Refund Protect is designed for emergency situations that are beyond your control. Partners retain the original transaction revenue, have the ability to resell the ticket, and keep their share of the upgrade fee charged to customers. It is a win-win-win situation. Customers get peace of mind, and businesses get a boost to their bottom line without lifting a finger.

The 4.8 Trustpilot score, compared to the industry average of 3.2, proves success in Refund Protect, with customers experiencing “absolutely brilliant service” and “instantaneous refunds”. For PSPs, offering Refund Protect acts as a VAS that helps diversify their revenue stream, keep merchants “more sticky”, and move beyond ‘price-only’ connections towards trust-built relationships.

Book a demo to discover how Refund Protect can build and add to your bottom line and create a hassle-free customer experience.