Retailers must embrace innovation in payment systems if they want to avoid getting left behind. An inefficient or frustrating payment experience can be the difference between making a sale or losing a customer.
The speed at which payment technology has advanced cannot be overstated. At a minimum, customers now expect reduced costs and increased transaction speeds. The demand for digital payments and solutions that create frictionless transactions is especially notable post-Covid.
“Something that we know is that the checkout experience can ultimately make or break the buying experience for a customer, and it’s the point in a customer’s journey where a lot of businesses see churn and they see customers fall through because it’s full of friction,” Rebecca Braga, industry growth lead at Australian payments provider Tyro, told Inside Small Business.
“They’re not experiencing that seamless transition from being excited about a product and then moving into buying and paying for the product,” she added.
By implementing the right payment solutions, retailers have an opportunity not only to reduce friction and churn but also to improve operational efficiency through integrated strategies.
Trends in payment today to win customers tomorrow
Here are some of the latest trends in payment technology retailers should consider, according to Tyro.
Embedded payments: There’s a significant shift by retailers towards integrating payments directly into retail systems and at the point of sale, allowing for smoother customer experiences.
This payment innovation refers to how retailers can take payments through the NFC chip on a mobile device – it’s an integrated payment system that directly feeds that transaction data back to the point of sale or order system that a retailer is using, creating a seamless customer experience.
The mobility of embedded payment systems removes the need for traditional counters that require the customer to move from the changing room to the checkout.
“When we’re looking at embedded payments, we can expect that tap-to-pay will become the norm for in-store payments in the next few years, and it’s rapidly overtaking payment terminals,” elaborated Braga.
“Again, it feeds into that customer demand for having a frictionless experience and making sure that they have that personalised experience as they check out,” she added.
Unified payments: Where all-in-one payment systems used to be the solution of choice for retailers, unified systems are cutting through by integrating multiple payment methods into a single interface.
The traditional all-in-one payment systems bundle multiple services together but they don’t offer the same level of integration as a unified payment system.
“Businesses are looking for systems that integrate into multiple payment methods through one interface, rather than just having eftpos that integrates into a particular system, which reduces that flexibility and increases friction,” stated Braga.
Omnichannel approaches: While innovations in embedded and unified payment systems reduce friction for in-person transactions, omnichannel strategies are helping businesses bridge online and offline experiences.
Tyro’s payment solutions support this by offering products that unify in-store and e-commerce payments, ensuring consistent customer experiences across all channels.
“We support an omnichannel approach by offering products that unify the in-store payments,” shared Braga.
“You’ve got the Eftpos terminal, you can collect payments through a mobile device, and we also offer e-commerce payments as well, which ensures a consistent customer experience,” she added.
Building a loyalty program that can convert and endure
Countless other innovations in payment technology can help businesses improve their operational efficiency beyond just the transaction.
Card matching technology makes it possible to scale a personalised customer experience throughout the business – streamlining loyalty programs by automatically tracking customer purchases and awarding loyalty points without the need for manual intervention.
“What we’re trying to do through our card-matching technology is give merchants the insights into their customer’s behaviours and purchases and then allow them to create those really personalised experiences,” stated Braga.
This technology can also increase participation in loyalty programs by removing manual processes for staff and the extra effort for customers.
Moreover, traditional loyalty programs offer businesses limited data and make it difficult to create meaningful relationships between brands and customers.
“We want to simplify loyalty as much as possible, we want to take the customer on a journey that fits their wishes and what they’re looking for, as opposed to that traditional one-size-fits-all approach to loyalty, where you collect loyalty rewards and you’re kind of restricted in terms of how you can spend that loyalty that you’ve accrued,” Braga explained.
“Through our card-matching technology, we leverage that payment data and give merchants the insights that they need to interact with their customers on a much more personal basis,” she added.
The future of payment systems is digital
Looking further ahead, Tyro sees the future of commerce as digital payments.
“We’re really entering the age of hyper-personalisation, and how brands interact with their customers has to evolve in order to meet the demands of consumers,” concluded Braga.
“Ultimately, the goal of embedded payments, omnichannel strategies, and loyalty programs is to create a holistic customer experience that keeps customers wanting to come back, buy more, and interact with your brand again in the future.”
As the world continues to transition into the digital age, businesses that remain at the forefront of innovation in payment solutions will be best placed to succeed.
Both businesses and customers are set to benefit from modern payment systems and solutions as technology continues to evolve to optimise the experience of both parties.
- Learn more about the latest innovation in payment technology and how to avoid getting left behind in this webinar from Tyro, which you can watch on demand here.
