With the pandemic hot on our heels, businesses learnt to pivot and adapt with the changes quickly. New ways to engage with consumers were developed. Growing trends such as digital wallets experienced massive acceleration. With these, we also saw the diversification of payment methods and new consumer behaviour emerging as we adjust to the new normal. Businesses will need to pivot their payment strategies accordingly as well.
Have you sufficiently prepared your payment strategy to address these changes? How future-proof are your payment strategies?
Let’s find out. We list out some major trends in payment strategies that are affected by consumer behaviour.
1. Contactless Payments
“If all other factors were equal (price, selection and location), nearly two-thirds (63%) of consumers would switch to a new business that installed contactless payment options,”
-The Visa Back to Business Study
Source: GlobalPayments
While contactless payments are not the latest trend, its growth has accelerated during the past year. With safety being a concern for both shoppers and retailers, this uptake of contactless payments is just natural.
Globally, consumers are showing a strong preference to shop with businesses that provide the option of contactless payment methods.
This is because consumers now have a heightened sense of safety when they shop. In fact, more than 50% of millennial shoppers are likely to avoid stores that don’t offer contactless payment.
Due to the convenience and simplicity of this payment method, it is unlikely that this trend will wear off even after the pandemic. Rather, we observe that contactless payment will be a basic requirement for the future.
2. QR Codes Are Useful
The adoption of QR codes is a wonderful way to help limit the contact between customers and retailers. Similar to contactless payment, QR codes also allow customers to make payments quickly and easily. The additional benefit is that it is more diverse in use. For example, restaurants and cafes are now using QR codes to showcase their menus. In some cases, customers can also make payments through these QR codes too.
Beyond the physical shopping landscape, QR codes are also useful in creating a seamless omnichannel experience. Influencers who are collaborating with brands are also incorporating QR codes to facilitate the live stream shopping experience.
3. Adoption of Embedded FinTech
Embedded fintech refers to the integration of payments and financial services into one software. For example, rideshare apps are great illustrations of how embedded fintech works. Using just one app, users are also to request a ride, select exact locations for pickup and dropoff and make payment. At no point does the user have to take out his wallet or phone again to make payment. The transaction method is already inherent in the service.
– Steve Klebe, Google Head of GPay BD – PSP Partnerships
One of the greatest benefits of embedded fintech is that businesses are able to valuea-dd to their services. This can be done through a point redemption system, encouraging store value and even offering deferred payment schemes. With embedded fintech, businesses are actually simplifying their backend operations while driving valuable revenue opportunities.
4. Be Sensitive To Financial Inclusion
– the World Bank.
For example, this could be in the form of allowing customers to load cash into their prepaid cards allowing them access to digital forms of payment. The primary objective here is to empower all users to participate in the digital economy.
Conclusion
Businesses that embrace change and get onboard with sustainable trends will maintain their competitive edge. Consumer changes are underway and the preference to all things digital will stay. Therefore, it is important to provide consumers with options that address their concerns and meet their needs as well.
