The Payment Methods Series
Unlocking the Payment Ecosystem
The surge in online shopping, the movement towards adopting mobile and contactless payments, the advancements in tech and artificial intelligence coupled with data analytics capabilities, the decline in check usage, and, not to mention, the nationwide lockdowns happening this year due to COVID-19—which has forced many of us to switch to digital to stay safe from the virus and continue working—have led to an increased adoption of different payment methods to help us “keep calm and carry on.”
Cash, cards, and paper checks are about to be cannibalised by new ways of paying for goods and services, and it has become imperative for merchants and retailers to stay relevant for their customers by offering a wide range of payment methods at checkout, whether they are selling domestically or cross-border. Whilst older generations show an affinity for paying by cash or cards, younger consumers feel less secure around their usage and have become big fans of digital payments. Take young British consumers, for instance; according to Business Money, 42% of Millennials (born between 1980-1993) and 35% of Generation Z (born between 1994-2001) have used bank transfers and e-wallets.
These digital payment methods have proven to be more convenient, faster, cheaper, better integrated into the user’s daily life, and more fun than using paper bills. Afterall, emojis, messages, and photos, or perhaps a customer rating, cannot be sent with a mere debit card payment!
But, sometimes, it can be difficult for a retailer/merchant to choose what payment method to offer to create a smooth customer experience, increase conversion, and drive loyalty. A retailer/merchant might also not be very familiar with the latest payment trends or, perhaps, they might not be interested in finding out which payment methods are the preferred local choices in a country they plan to expand to. Identifying the best payment methods for markets and target groups can be costly, time-consuming, and requires a certain level of experience. That is why merchants/retailers usually turn to payment service providers (PSPs).
To help you, we have decided to create a payments series that briefly presents different payment methods to help you get the right payment mix.