Payment Systems Keep Advancing
Payment systems are advancing faster in Europe than the US. Contactless payment is more widely adopted in Europe, as is advances in open banking. Companies like Apple, Google and Amazon have fuelled the growth of digital wallets, now being rapidly adopted by younger consumers. The next big surge is expected to be tapping your mobile phone on a contactless payment terminal or even on a store associate’s mobile device.
Coupled with these changes is the growth in paying by instalments at point of sale and the use of digital receipts. The mix between paying by bank direct debit through open banking, facilitated by digital wallets, or paying by credit card, may shift market share as retailers realise, they can reduce credit card fees through open banking applications.
For retailers, it gives the opportunity to improve customer service by accepting payment anywhere, not just at fixed POS locations and emailing digital receipts to shoppers. This has already become the de facto method of payment for food and drink on budget airlines, many of whom no longer accept cash.
When developing store IT plans, look for ways to improve customer convenience through advanced payment options including for pop up stores, tent, or warehouse sales, buy online pickup at kerbside, etc.
You can read a longer version of this minute with more detailed insight at Retail and Consumer Goods Industry WIKI and EPSS, if you or your company have a licence.
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Posted by Brian Hume
29th March 2024
