It is that time of the year again when retailers and dealers need to worry about their business strategies for the year ahead. Ever since the outbreak of the COVID-19 pandemic, in which people were forced to stay home, the entire payment industry has undergone major changes.
The new year brings several promises and challenges with the new payment processing trends and technology changes. Besides, with the growing popularity of credit cards, businesses and eCommerce stores have also seen a stark rise in their sales and conversions.
While you are busy making critical financial decisions and planning marketing strategies for the upcoming quarter, learn how the following payment processing trends will help shape the future of digital payments, at least for the remainder of 2021.
1. Cash is Taking a Back Seat!
Today, there are some people who prefer cash payments over digital transactions, mostly because they are not so tech-savvy or because they are afraid of cybersecurity breaches. However, in an era of contactless payments and deliveries, the concept of ‘Cash on Delivery’ is gradually losing importance.
This has led customers to look for cashless digital payments either via cards or other mobile payments technologies. Cashless payments reduce the risks of transmitting or contracting the virus.
2. Mobile Wallets are on the Move!
Mobile payments are widely accepted modes of transactions, primarily because they are fast and efficient. With the adoption of smarter devices, customers love to go for the brand that offers flexible and smooth mobile payment systems that can be done on-the-move!
This increasing demand of mobile payments among modern consumers has led financial players and technology to design efficient mobile wallets that enable lightning fast payments in just a few simple steps. Besides, mobile eWallets improve customer experience and ensure safe and secure transactions.
Try to offer all the widely accepted payment modes, such as UPI transfers, eWallets like PayPal, netbanking, bank transfers, card payments, cryptocurrencies, and even gift cards or coupons. Adopt a payment processing system that supports all the popular payment modes to enhance customer experience.
3. Biometrics are Gaining Importance
Never compromise on the security of your payment systems, because nothing will ruin your brand’s reputation faster than a risky and vulnerable payment system. Fraudsters and hackers are waiting to find the perfect opportunity to steal your, and your customers’, money! Also, make sure all sensitive buyer data is stored safely in your database.
The best way to ensure the highest security of your payments is to be PCI Compliant and integrate a biometric authentication system. It secures each transaction through your credit card processor and uses the buyers’ fingerprint ID for validating a particular transaction.
Biometric authentication has become tremendously popular recently, especially after smartphones began implementing fingerprint scanners, along with other payment identification and authentication methods like Face ID validation. This is one of the latest technologies for making secure payments and is predicted to be used for over 18 billion payments by the next year.
4. Artificial Intelligence Comes into the Spotlight!
AI technologies are of great help for merchants because they can offer high levels of security during transactions by using anti-fraud systems of other advanced applications for reconciling payments. Besides, through the implementation of Artificial Intelligence, you can work with a more automated and customized POS technology, thus enriching user experience.
Automation through AI not only reduces human labor and improves accuracy of financial transactions, but also boosts the security and privacy of your payment processing system. Besides, it enables your customers to have a more streamlined and personalized buying experience, especially while making payments.
Then there are the benefits merchants like you can enjoy using an AI-powered POS system. You can settle payments and manage vital data on the back-end with ease and flexibility.
5. Data Analytics is the New Cool!
Want to create a unique and more personalized shopping experience for your buyers?
Try integrating a data analytics tool into your website or credit card processor. Data analytics applications enable you to gain deeper insights into your business and your customers’ buying and paying behaviors.
Transaction data analytics enable you to spot the loopholes that might be present in your payment processor, thus allowing you to create better and improved shopping experiences. Companies are also leveraging this vital data to search new markets in wider geographic locations, thus finding business expansion opportunities.
6. Buy Now, Pay Later
Another new payment processing trend includes the “Buy Now, Pay Later” model, which serves as an alternate payment method for your customers. This usually includes EMI modes of payment or enjoying a trial version of a product.
In this model, one can have a product or service without paying for it immediately. The customer can either make the entire payment later or do so in easy and flexible installments, as per the payment policies set by the particular business.
Pay later options can be extremely beneficial for retailers who wish to move their products faster, thus freeing up their inventory storage space and reducing inventory management costs. Further, this model encourages customers to buy and try out several products before actually paying for them.
Examples of such pay later services include Afterpay and Sezzle. With the rising number of such flexible and convenient payment technologies and processes, customers are more likely to prefer online shopping and making digital payments without hesitation.
7. Frictionless Payments
Every customer appreciates and deserves a seamless and smooth payment system that helps them to checkout and place their orders on-the-go without delay. Complex steps or inconvenient payment modes turn them off and they will immediately leave their carts!
It’s your duty to offer a frictionless and flexible transacting environment, without making customers go through a series of complicated steps. Also, ensure that the payment gateway they are paying through is super-smooth and fast.
Also Read – Best Credit Card Machines and Terminals
To make sure you have the best payment processor, choose your provider and merchant account carefully, considering all the factors essential for your specific business and customer needs. If you make your buyers follow an inefficient or difficult payment process, they will land on your competitors website!