Digital payments are becoming more popular daily as shoppers increasingly rely on their smartphones to help manage their money. Retailers are responding by giving customers a more seamless experience at checkout and payment – both online and in offline business.
Moving money from point A to point B was a hectic procedure in the past of e-commerce field.Many social interactive apps like Facebook, Instagram, Pinterest, Snapchat provide many e-commerce features, the trend will continue to accelerate especially as voice payments, biometric authentication, and cryptocurrencies gain consumer acceptance.
Below we dive into some of the biggest payment trends. Which ones will you implement?
All in one Apps
Digital payments are becoming more integrated with online media platforms, some of them are search engine, social media platforms, social networks that are building eCommerce trends as they seek to become all-inclusive super apps.The goal is to keep shoppers within a single app that handles a broader range of tasks that include integrated payments.
WeChat, the messaging app from Chinese Internet company Tencent.WeChat has branched out from its messaging roots with its support of "mini programs" for online shopping, bill payment, travel booking, ticketing, and ride-hailing, among other services to connect businesses with customers.
WeChat's role as an all-encompassing "lifestyle hub" provides a window into a possible future for other tech companies that push into eCommerce. For example, Facebook, which also owns Instagram, Messenger, and WhatsApp, is in various stages of adding payment support to its apps; YouTube is touting more shopping experiences that are integrated with payments; and Snapchat and Pinterest also have more eCommerce support.
The popularity of WeChat and rival Alipay from eCommerce giant Alibaba has led some parts of urban China to become entirely cashless.
The modern era after years of underdevelopment. In addition to handling digital transactions, the apps let consumers make payments at brick-and-mortar stores without the need for cash or a plastic card.
U.S. consumers have been slower to adopt mobile payments, mainly because plastic payment cards are trusted and easy to use.In addition, for years U.S. companies have invested heavily in the infrastructure to support card payments. The enduring popularity of plastic cards has even led Silicon Valley companies like PayPal and Apple to offer cards to help boost adoption of their payment services.
Younger generations have grown up using smartphones for gaming, streaming media, and social interactions. That familiarity with the technology is leading to higher adoption of digital wallets as young people learn to manage their own money.
Personalised experience for digital payments
Expanded role of social media in eCommerce and the evolution of digital wallets are part of trend in offering consumers more personalized experiences online and in stores.Letting customers shop whenever they want and wherever they want also involves giving them a chance to pay however they want. Retailers have more ways to accept payments than ever before, giving them the possibility to ease the friction at checkout.
Payment methods available to merchants now include PayPal, Apple Pay, Amazon Pay, Samsung Pay, Google Pay, Masterpass, and Visa Checkout, among others.Digital payments are also becoming more integrated with loyalty programs, letting businesses develop rewards that are more meaningful to their customers. A growing number of businesses are creating mobile apps that let customers track points and see their progress toward earning a reward.
Digital payments are also becoming more integrated with loyalty programs, letting businesses develop rewards that are more meaningful to their customers. A growing number of businesses are creating mobile apps that let customers track points and see their progress toward earning a reward.
Amazon, which created the Alexa voice-powered assistant to power its smart-home appliances, found in a survey that 40% of consumers expect to use voice commands as part of their shopping experience in the next three years. That path to purchase not only included researching products, but also the final purchase transaction.
Bank of America has invested heavily to develop its Erica virtual assistant to handle a broader range of services. Bank customers can interact with Erica via text or voice commands and perform tasks like viewing bills and scheduling payments. It's important for eCommerce companies to be prepared for the era of voice commerce that’s becoming a reality.
Biometric technology, such as fingerprint scanning and facial recognition, is becoming more integrated with digital payments as an authentication method. They can save time in approving secure payments instead of forcing customers to re-enter credit card information or to remember another password.
However, biometrics also have led to significant privacy concerns because the information is so personalized and unchangeable. While a consumer can cancel a payment card and order a new one because of suspicious unapproved charges, biometric information about fingerprints don’t change much throughout a person's life. It's important to protect that information because a data breach could be very costly.
The year ahead will see significant advancements in digital payments present growing consumer adoption of newer payments methods. Payments are a key part of the customer experience, ideally one that is so smooth that customers don't pay attention to it. While shoppers have more ways to make digital payments than ever before, eCommerce companies should focus on payment methods that are most meaningful to their key customers.
Blog Credits : Magento Blogs
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