According to the 2020 American Express Digital Payments survey, 58% of customers who had previously utilized contactless payments reported they are just as inclined to use them now more than ever before. The survey clearly demonstrates that customers are doing whatever they can to avoid contact during the Covid-19 pandemic.
Since this trend shows no sign of dissipating, merchants are under immense strain to keep up with the rapidly evolving payments revolution, by developing a “comprehensive payment strategy”.
With global giants like Facebook, Google, Amazon, and Apple, the lower-ranked, smaller players are feeling the pressure to keep up.
Where Merchants Must Focus On
Online merchants, in order to remain solvent and grow, must focus on global reach and gaining acceptance throughout the world, along with accepting numerous payment types.
Some merchant solutions that can be incorporated include providing economical and “low maintenance payment forms”. This can mean offering smartphone payments through merchant apps. One capability that would cater to customers during this time is to allow customers to use a merchant app to place an order and then allowing the customer to pick up the item in-store. Via this app, merchants can collect vital customer information, which can also be used to develop customer loyalty programs.
Secondly, customers are increasingly demanding a seamless payment journey as part of their shopping experience. Amazon has integrated this perfectly with payment initiatives such as prime rewards, Amazon cash, Amazon Pay UPI, and Amazon Lending. These programs have not only improved the customer experience but have also boosted their profitability and their market share.
Finally, online merchants must not neglect security. Getting well-acquainted with the most common types of fraud in the industry and working towards lowering fraud rates can take merchants to a higher level of operation. Merchants must seek the right partnership with payment technology companies that offer state-of-the-art and efficient technology such as real-time fraud detection and monitoring.
No Money, No Problem
It is no mystery that smaller enterprises will not have access to the deep pockets of their giant competitors. Luckily, more payment providers are removing these deterrents by offering merchants both credit financing and investment solutions that will facilitate merchants to fully scale, manage, and grow their business. This type of support is vital to having a solid, value-filled partnership.
Payment processors also have the capacity to offer simple banking alternatives and even extend a merchant’s credit line. By doing so, payment providers give merchants direct access to competent creditors and first-rate banking options, enabling them to provide superior services to their customers.
It is clear that consumers have completely changed their buying behavior and are moving more towards mobile, digital, and social tools for their purchasing needs. The obvious course of action for merchants is to develop modern commerce and sales solutions to stimulate customer engagement and greatly improve their return on investment with each purchase.
It’s A Win-Win Situation
Payment providers are beginning to see the competitive advantages of assisting online merchants to successfully upgrade their payment solutions. These strategies will both attract and engage consumers.
By seeing this as a strategic partnership and investing the necessary resources into this collaboration, payment providers and online merchants stand to stay ahead of the payments revolution curve.