The payments industry has made massive strides in connecting people to commerce over recent years. New technology is transforming the way we pay for everyday goods, adding extra layers of security at the same time.
SIX Payment Services has identified three main trends that it believes will influence the payments industry in 2017.
The fusion of all channels by Unique ID
Synchronising all touchpoints and payment points on a single platform will continue to be a challenge for many merchants in 2017. Some payment service providers are working on the idea of introducing a "unique ID" for each customer – this would allow for a paying customer to be identified with a unique ID across all channels. This makes it easier for customers to pay, and for merchants to track the journey of new and existing customers in order to optimize the offering. The problem that arises is data protection: who now owns this data? There is currently no legal precedent around this and so the debate is likely to continue through the year and possibly beyond.
Full checkout in e-commerce
As technology continues to improve and change, so do online shopping trends. Online shopping is increasingly centered around smartphones. Therefore it is understandable that consumers do not want to deal with lengthy payments procedures; and sometimes simply ‘drop out’ of a transaction due to frustration. As a result, payment providers and merchants are increasingly concerned about how they can simplify the payment process to ensure it is both fast and secure. Mastercard, for example, offers the Masterpass digital payment solution where a customer only has to enter his or her e-mail address as a user name and a personal password in order to complete a purchase.
Payment through marketplaces
Online marketplaces, such as Amazon or Etsy, provide a platform for many large and small traders to offer their products to a wide range of customers. There can be problems however if orders are not run via the main marketplace but instead directly through a merchant. At such merchants, payment options vary significantly: some offer many different payment methods, while others offer little choice. It is proven that the abandonment rate increases if the customer does not find his preferred payment. To prevent this, merchants should offer the appropriate variety of payment systems for consumers. A payment provider consultant, such as SIX Payment Services, can help identify the best options for merchants depending on sectors, geographies etc.
Roger Niederer, Head Merchant Services at SIX Payment Services, said: “Technology is changing not only consumer demand but also the range of payment options that merchants can now provide both online and in store. It is important to stay aware of payment and consumer trends to avoid missing out on sales due to a lack of payment options. We believe that these trends will continue throughout 2017 as the payment landscape continues to evolve.”