Retail payments - whats next for shoppers and merchants

First things first - what are the current shifts that you see happening in retail payments?

I can’t say there’s any completely new trend, but there have been a few dominant themes for a while now, developing year by year and providing a clear direction for retail payments. These are omnichannel, mobile wallets, machine learning, and IoT. They all provide an environment that’s more straightforward and more engaging for both merchants and shoppers. Innovation doesn’t have a rapid pace in retail payments, but it’s certainly paving the way in making customer experience the greatest asset for merchants.

Omnichannel success can be an overwhelming task for merchants. What should they focus on?

Creating an omnichannel experience is all about understanding how your customers want to experience your brand. Having a payments infrastructure to support your strategy is vital. The interaction ranges from the point-of-sale terminal in your corner store to the smartwatch on someone’s wrist. People will shop and pay in whichever environment is most convenient for them at that moment.

If you’re building this experience for your customers, it’s only logical that all your operations, reporting, logistics, and more are also connected. That way you can keep your shelves stocked, let customers buy and return anywhere faster and enhance security with features like tokenization. It takes time and step-by-step improvements to integrate this into your business model, but as soon as you do, everything will run smoother than ever.

It’s been said that the retail future is mobile. Is this still the case and how should merchants prepare?

There’s really a shift in the way people assume they’re going to pay for things – they expect the same kind of seamless payment everywhere. This is especially obvious if we take a look at the rise in Chinese travellers heading outside the country, which is expected to grow by 7.4% by 2030. Wherever they go, they’re going to expect the same kind of seamless payment experience they enjoy at home – a trend that’s expected to follow in the West as well.

While China appears to lead the shift, mobile payments in the US are also expected to triple by 2021, fuelled by the addition of Apple Pay, Google Pay, and Samsung Pay as available payment methods. Catching up with this trend will be a must for merchants in the future. They’ll need to make sure that terminals are NFC-capable and supporting multi-payment options no matter where shoppers are checking out. Preparation will make the future bright.

What’s the most worrying topic for merchants right now and what’s the solution?

Ecommerce fraud. It’s now higher than ever, making up more than 40% of online transactions each month. The key to keep fraudsters away and your profits safe is machine learning. The technology uses self-learning models to automatically analyse thousands of data streams. Then a risk score is calculated for each transaction, while continuously refining the algorithm for improved accuracy. The result? Fraud management that’s extremely flexible, efficient, and scalable. Apart from blocking fraud, machine learning algorithms are also effective in reducing false positives. This means they interpret the data correctly without flagging genuine consumers as fraudsters. They keep fraudsters at bay while ensuring a flawless experience for your honest shoppers.

What’s IoT promising to merchants and what can we expect to see?

Over 30 billion IoT devices are expected by 2020, the majority being smart speakers and appliances and in-car payments. IoT promises merchants an improved connection with their customers, bringing them closer to what they need in a faster way. The customer journey can begin almost anywhere with a device that’s equipped with an internet connection. Just a few words uttered to your fridge or washing machine can restock the desired products at your door while you’re still on your way home. An experience like this connects merchants with consumers from the very first thoughts of a product or need, taking away any interruptions between demand and delivery. The uptake of IoT isn’t going at a great speed, but it’s definitely a trend that merchants should keep on their radar. Automated checkouts, smart shelves and robot staff are just a few of the advances that consumers will expect from their shopping experience in the next decade.

Omnichannel, mobile wallets, machine learning and IoT are setting the stage for merchants to embrace new ways to upgrade their customer experience. They’re a definite must-have for a merchant’s growth strategy. For more in-depth insights into these shifts, be sure to check our Retail Payments report.

About Gijs op de Weegh

Gijs op de Weegh is Payvisions COO, overseeing ongoing business operations and development, making sure the overall corporate strategy is brought to reality. He’s got extensive knowledge on the ecommerce and global payments industries, especially when it comes to joint ventures and strategic investments. With his industry expertise and know-how on the growth of the ecommerce sector, Gijs has become a distinguished panelist at events.

About Payvision

Payvision is a global payment processor that’s driven by a passion for technology and simplifying payments. With one single, secure platform, we power transactions for businesses across the globe. We know our way around the latest techniques in artificial intelligence, omnichannel strategies and advanced fraud prevention. The dedication to our clients shows – this is where we truly make a difference. By enabling an intuitive and flawless customer experience on all channels, we bring a unique beat to payments. Headquartered in Amsterdam, the Netherlands, we’ve grown over the past 17 years into an international team with offices in North America, Europe and Asia. In 2018, ING bought a 75% stake in Payvision, allowing us to offer an unstoppable combo of the fintech and banking worlds put together. This partnership means cutting-edge innovations and a startup mindset backed by ING’s expertise and global network.