The world experienced substantial changes over the last twenty years, particularly regarding technology and payment trends.
Every year tech gets easier and more profitable for merchants and consumers. It provides more secure payments and enables a broader range of convenient payment options. That said, new options and opportunities can also create questions about how to manage these technologies.
Let’s look at some of these advances and how they can benefit everyone in the payments chain.
1. Cloud Expansion
Cloud-based software has broadened opportunities for payment trends. Those who own small businesses should recognize the value of this ever-expanding technology, as cloud-based POS systems have become a staple (and less of a trend).
Modern, cloud-based systems provide all-in-one solutions for businesses that seek a streamlined and secure approach to commerce. By virtue of its technology, cloud storage allows far better space management than traditional cash registers. Company information can also be readily accessed from any location, providing much-needed and money-saving versatility for small and middling business owners.
The cloud also offers added security. If the system is kept up-to-date and passwords are protected, thieves will find it much more difficult to steal from you. Cloud-based POS systems come standard with enhanced encryption designed to halt these fraudsters in their tracks and make it all the harder for hackers to access your data.
2. Mobile Payment Invasion
Mobile payments are on the rise just about everywhere. Smartphone users in the United States who made at least one mobile payment transaction in a store over a six-month period grew from 101.2 million (36.4% of the population) in 2021 to a projected 125 million (or 43.7%) in 2025, according to market research from Insider Intelligence.
A leading cause of this explosion is that near-field communication (NFC) has jumped onto the scene. NFC technology enables consumers’ phones to interact directly with POS systems when they are in proximity. Younger consumers—especially Millennials—are particularly fond of this new technology.
In order to benefit from this, merchants must have cloud-based terminals with NFC-enabled chips installed. When the consumer holds the phone close to the reader, it can authorize the purchase and even print (or email) a receipt.
It takes half the time needed to electronically complete a purchase and upload a receipt, as compared to running the transaction through a terminal. This time-saving innovation increases convenience for everyone involved.
3. Subscription Service Resurrection
I get it. Subscription services come with a lot of baggage for merchants. Despite this, the payment trend is making substantial gains lately.
Millennials are particularly fond of subscription services due to their lowered up-front costs and convenient payment options. For merchants, subscriptions provide a stable revenue stream and a bevy of seemingly satisfied customers.
Merchants must remain vigilant about their customer service and their chargeback prevention tactics, though. Buyer enthusiasm will quickly wane if they can no longer trust a brand with their hard-earned money.
The truth is that customers love the convenience of “setting it and forgetting” subscriptions, but it often isn’t so simple. Consumers should be more cautious with their subscription choices, and merchants should never be in a hurry to take advantage.
Remember, no marketing tactic replaces the necessity for exceptional customer service on the merchant’s end. Building great customer relationships and providing speedy responses to feedback helps merchants ensure that the revenue stream is positioned for long-term growth.
4. BOPUS and Mobile Orders
“Buy online pick-up in-store” (or “BOPUS”) payment options are extremely popular right now. In fact, US shoppers spent more than $70 billion via BOPUS in 2020, making up nearly 10% of all eCommerce sales.
According to Raydiant’s The State of BOPUS Report 2021, 56% of consumers have used BOPUS services six or more times in the last 12 months. 8.2% of shoppers have used it more than 20 times. This is highly suggestive that BOPUS is now a preferred way of shopping. And, according to Shopify, 54% of consumers reported that over the next year, they’re likely to look at a product online and buy it in-store, and 53% are likely to look at a product in-store and buy it online.
This data implies that mobile ordering, on the whole, is a profitable business strategy for restaurants and retail establishments. Plus, with dedicated apps, customers can order what they want and pick the item up at the counter without having to search through the store or wait in line. Customers will appreciate the convenience of BOPUS, and It keeps your business trending and increases how much customers are likely to spend.
Managing customer expectations and preventing negative experiences are critically important, though. You can’t succeed without happy, engaged customers.
The Bottom Line
Modern payments technology can provide merchants with safer checkouts, increased convenience, and the opportunity to expand their businesses.
Retailers and eCommerce merchants who recognize the value of the incoming tech certainly will be among the first to reap the benefits. After all, it’s a buyer’s market. Offering greater convenience and better, faster service for buyers could mean the difference between success and failure.
