Fragmentation of Payment Channels: Why a Unified Approach Is Crucial

Fragmentation isn’t just inconvenient — it directly impacts operations and customer experience. The first challenge is the lack of a clear overall overview and an easy way to generate reports. With disconnected systems, it becomes difficult to quickly see which channel performs best. Figures need to be compiled manually, which is time-consuming and prone to errors. Customer data is also stored in fragmented systems, making it difficult to get a complete view of customer behaviour across channels.

A second issue arises in the back office. When using three or more different payment solutions, it’s highly likely that part of the admin team needs to manually consolidate or retype data. This adds workload and increases the risk of mistakes — like double invoicing or missed refunds. With so many manual steps, working efficiently and accurately becomes increasingly difficult, especially as the business grows or during peak periods.

Fragmentation also impacts the customer experience. Inconsistent payment options (such as offering Riverty online, but not in-store) can create confusion. Today’s customers expect consistency: if they prefer a payment method online, they also expect it in the physical store. Additionally, fulfilment delays may occur if store and web systems don’t share real-time stock or order information — leading to frustration and wait times.

Last but not least, fragmentation hampers scalability and innovation. If you want to adopt new payment trends like BNPL (Buy Now, Pay Later), you’ll need to adjust each system individually. Without central coordination, managing peak moments — like sales or holidays — becomes a challenge. This can result in queues, slow webshop performance, or even system crashes in-store.

How Can You Address Fragmentation?

The key is to start with a thorough inventory of all current systems and processes. Map out who manages which channels, which payment methods are being used, and where the biggest pain points lie. Once you have a complete picture, it’s smart to appoint a central coordinator. A multidisciplinary team — with financial, technical, and commercial colleagues — can jointly determine the direction to take.

Next, it’s worth examining the technical side. Can existing systems be connected via APIs, or would it be more effective in the long run to move toward one flexible, all-in-one solution? It’s crucial that all systems exchange data in real time, so that stock levels or payment statuses don’t have to be entered manually. At the same time, it helps to take the customer experience as your starting point: which payment methods and checkout flows are available across all channels, and are they equally seamless and recognisable everywhere?

Finally, it’s all about forward thinking. Make sure you plan for future growth and trends. A platform that meets your current needs should also be able to scale, support new payment options, and handle peak periods in the years ahead. That way, you avoid ending up with multiple systems again due to ongoing ad hoc adjustments.

Fragmentation of payment channels often arises unintentionally as businesses respond to demand and add new channels. Over time, this spontaneous growth can lead to chaos and unnecessary costs — with negative effects on the customer experience. By conducting a clear inventory, establishing central coordination, implementing suitable technical solutions, and maintaining a future-focused mindset, you can reduce fragmentation. The result: a streamlined, consistent payment strategy that boosts efficiency and strengthens customer trust.