The year ahead will see the payments industry influenced by three emerging trends, claims SIX Payment Services.
The Switzerland-based card processing specialist has identified and commented on each of the three trends as follows:
- 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, according to SIX. 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 optimise 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, so consumers understandably 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/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, whose payment options can 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. Payment provider consultants such as SIX offer to identify the best options for merchants depending on sectors, geographies and other factors
“Technology is changing not only consumer demand but also the range of payment options that merchants can now provide both online and in store,” said Roger Niederer, SIX’s head of merchant services.
“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.”