Payment Trends That Aren’t Going Away
Once consumers discovered the ease and convenience of these payment methods, they didn’t look back.
Today’s consumers are technology-driven, finding the easiest path to purchase. They may start with an online search for products or browsing through a shopping app. The next step may be an order for in-store pickup or delivery or a trip to the store to see or try the item before purchase. In the store, consumers may use endless aisle solutions to check other items in stock. To complete a purchase, they may look for an associate using mobile point of sale (POS) or use self-checkout. Along those omnichannel shopping journeys, consumers expect convenient ways to pay, which has given new payment trends significant momentum.
Consumer Payment Trends Continuing with No End in Sight
- Customers want one-click payment options.
Customers want a quick and easy way to pay their bills. With this in mind, merchants have started relying on “click to pay” options, a digital payment trend that has customers clicking a secure hyperlink in an email or text. The link takes the user to an electronic invoice or payments page where they can pay without logging into a portal or website. This payment trend is gaining momentum in field services and many card-not-present industries, replacing paper invoices, streamlining back-office processes, and improving cash flow.
- QR codes create touchless experiences.
Similar to a payment link, consumers scan QR codes with their smartphones, and the code takes them to a payments page where they can settle a restaurant check or complete a transaction at a veterinary office.
- Apps include payment functionality.
Mobile applications that include the most common digital payment methods provide the best m-commerce shopping experiences. Integrating payments with apps gives customers the convenience of using data stored on their smartphones to purchase or order and pay with just a few clicks. For example, a parking authority could provide garage/lot reservations and quick payment through this functionality. An amusement park could also leverage mobile app payment integration to order pick-up and pay without waiting in long lines. You can easily add payments functionality to mobile applications if you have the right payment partner.
- Consumers discover the convenience of digital wallets.
Digital wallets are a useful tool for omnichannel shoppers. In-store, customers open the app on their smartphones and tap or wave their devices near a card reader. Additionally, when they are shopping on their smartphones, which account for 75 percent of e-commerce purchases, they can make a payment with just a few clicks.
Digital wallets allow consumers to use one payment method wherever they shop and more easily keep track of their finances. Also, digital wallets can store loyalty account information, eliminating the need to carry a wallet full of cards.
Trends that Benefit Merchants
Many digital payment trends are consumer-driven, meeting customers’ demands for convenience, time savings, and ease of use. However, some payment trends are driven by merchants looking for ways to increase operational efficiency, such as:
1. Cloud-based technology
The pandemic highlighted the need for better business continuity strategies and greater agility. Cloud-based technology allows merchants to take payments and connect and share data across websites, applications, and physical locations, all while keeping payment information secure. The right cloud-based payment technology can give merchants a total processing platform and storage hub integrated with any application and accessed anywhere with ease and simplicity. If operations must change in response to industry disruptions, a natural disaster – or a pandemic – businesses can adapt more quickly.
2. ERP payments integration
Disconnected systems cost merchants time and money. That’s why enterprise resource planning (ERP) systems are the foundation of a well-run business to connect the tools and resources that manage operations. However, payment systems often remain disconnected from an ERP system. This requires re-keying data manually into an ERP, which can lead to errors from mistyped or misapplied payments. This can lead to shipping delays and unhappy customers. By integrating payments with the ERP, merchants can overcome these obstacles and benefit from real-time reporting, payment security, and streamlined resources.
Is Your Business Keeping Up with Payment Trends?
Legacy payment solutions can’t provide the functionality that today’s merchants and consumers demand. A modern payment solution with omnichannel functionality is vital to delivering customer experiences that will give you an edge over the competition.
Consumers will do business where it’s most convenient. EVO can help you rise to the top of that list. Contact us to learn more.
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