5 min read
How consumers are driving payment innovations
There’s been a huge amount of disruption in the payments industry over the past few years, and that change isn’t going to slow down anytime soon! With technological advances impacting all areas of our lives, it’s no surprise that customers are increasingly expecting quicker and more convenient ways to pay for goods and services. So let’s have a look at how that demand is shaping the payments landscape.
Meeting the mobile market
The crux of the issue is that today’s consumer wants to shop and pay securely in a way that suits their lifestyle, and that means something different for everybody, which is why we are seeing so many different innovations out there.
One dominant trend we’re seeing though is the increasing switch from e-commerce to m-commerce, or to put it another way, people are increasingly doing their online shopping via their mobile, rather than their desktop. And one pain point that seems to be almost universal is that hatred of passwords, with research from MasterCard showing that over half of us forget passwords more than once a week, and almost one third of people abandon an online purchase due to password issues.
Making passwords obsolete
Some retailers are seeking to overcome this issue with a one-click checkout that means a customer only needs to enter their details once, and can then make purchases without having to re-enter them. However, according to MasterCard, 50 per cent of people want to see passwords replaced altogether, and the rise of options like Apple Pay and Android Pay demonstrate that the market is listening.
We can only expect this kind of technology to get more sophisticated, and looking forward we can expect to see innovations such as digital wallets that can support payments, coupons and loyalty offers, and use algorithms to decide which payment method would offer the customer the best value.
In-store payment innovations
But it’s not just online shopping where customer behaviour is driving change. Shoppers are increasingly expecting a better, faster experience in store, and payment innovations need to keep up with this demand. A great example is Walmart Pay, which was introduced by the US megastore back in 2015. Any customer can download the app on their Apple or Android device, scan at the checkout and payment is taken directly via their phone with an e-receipt sent to them.
New apps though are taking this idea even further and removing the need for checkouts altogether. MishiPay lets customers walk into a store that accepts MishiPay, scan the item on their phone – which immediately deducts payment – then simply walk out. It’s a concept that’s still in its infancy, but one that given it’s convenience to the shopper seems likely to take off in a big way.
This is just a taste of what’s happening in the ever-changing payments environment, but what is certain is that we’re in for some even bigger changes over the coming years as the industry looks to keep track with the consumer’s desire for increasingly sophisticated payment services.