Consumer dynamics in the payments industry are changing.
The payments sector is constantly evolving, as well as the focus on security in payments. Trust is the foundation to build key relationships with consumers.
Recent research suggests that retailers are making a conscious effort to get closer to their customers through experience-based platforms. However, the more technology is infused into our payment methods, the more sensitive consumers are to cyber attacks. To minimise risks, firms and organisations are steering payments towards a more secure and digital platform to process payments.
The push towards a rich checkout experience has also been lacking in the payments sector, leaving consumers frustrated and unable to process payments in a timely manner.
“Assisted sales and the phasing out of central cashiers are the tip of the iceberg of an ongoing revolution in face-to-face checkout. Payments need to be quick, simple, secure and painless leaving the sales associate free to extend their relationship with the consumer who can then engage on their own terms – whether that be simply ordering and paying, getting attractive offers, browsing relevant apps and being rewarded in a way that is individually meaningful,” says Mike Ausems, co-CEO and co-founder of Yello, whose new YelloPad platform offers acquirers and merchants a platform to provide services at the point of sale.
Payment terminals have stayed the same over the last 10 years, with steady advances in contactless and mobile wallet transactions. Customers are looking to spend less time queuing and more time thoroughly processing their payments in the most efficient way possible. This year, Black Friday sales saw a sharp increase in ecommerce, with sales in the US surpassing the $3 billion mark. Bricks-and-mortar shoppers fell significantly.
“Up until now, it hasn’t really been possible to deliver the rich checkout experience at the point of sale that retailers and consumers are now demanding,” adds Daniel Maurice-Vallerey, also of Yello.
All about consumer experience
The biggest challenge both retailers and consumers face are the ever-growing capacity of consumers, especially during peak hours and popular shopping events.
According to research by Yello, 45 per cent of people are frustrated by the time they had to wait before they could pay and check out, and in restaurants, customers will order 25 per cent more. It would be beneficial to have a payment terminal that will provide quick, simple and secure payments.
A recent report by Forrester states that trust is now business currency. Key technologies will reshape how businesses operate, providing enhanced engagement opportunities, both virtual and physical. Customers are now more aware of security and privacy risks, and firms will either gain or lose affinity based on the consumers trust. People also reward or punish companies based on a single experience, in a single moment in time.
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