In a world dominated by digital technology, things are changing faster than ever. No sooner do we update to the latest device than the world is moving onto the next one. Keeping pace with a fast-developing world can feel like a never-ending battle. It’s one which many retail app builders feel they are destined to lose.
The challenge is one which could determine the success or failure of an app. Customers have more choices than ever and they are demanding more, especially when it comes to payments.
Today, people view payments in a completely different way. No longer is it just a question of cash or credit – now there are a myriad of ways. Digital Wallets like ApplePay, PayPal and AliPay, Bitcoin, Buy Now Pay Later (BNPL) are all on the rise with others being added to the list all the time. From contactless to mobile pay and cryptocurrencies among others, customers are using multiple channels to pay, and they expect retailers to be able to offer all of them.
That’s not to say digital payments are replacing traditional methods completely. Around 90% of sales still happen in store. Instead, new digital forms of retail are supplementing the channels we all know and love. People aren’t moving away from cards and cash, but they expect to have the option to choose whichever form of payment works for them.
The payments sector is becoming more diverse and retailers would be well advised to support as many options as possible. If customers find that their chosen payment avenue is not supported, they may decide to vote with their feet and seek alternatives elsewhere. Data suggests that US retailers risk a massive hit to their customer base if their payment offerings are not up to scratch.
About 42% of customers said they would ditch a retailer if they could not offer their preferred payment method. More than half of customers said they would abandon a purchase if the process was too complicated and 43% of customers avoid merchants which require repeat entry of payment details. Giving customers the options they want will be vital to sales.
However, the economic environment is as tough as it ever has been. The cost of living is rising, and employees are hard to come by. Upgrading infrastructure to keep pace with this frantically evolving payments ecosystem can seem overwhelming.
The solution to this new world is technology – new systems, devices and platforms to help you accept more forms of payment. However, bringing these all together is incredibly complicated and can be expensive. You may find yourself having to engage with multiple providers, each of which have their own requirements and fee tables that merchants will be expected to pay.
Transaction processing expenses can mount up and, with multiple service providers to supervise, it can become even more difficult to manage and balance your cash flow. Managing different providers can also lead to hidden costs, complex reconcilement and additional resources which is lost revenue opportunities.
Related: The rise of mobile point of sale solutions
The more service providers you have, the more disjointed the buying experience can be. There online purchasing process is more likely to be complicated leading to increased risk of cart abandonment, and customers may find themselves having to enter their details more than once. Furthermore, having multiple partners managing different payments processes means there are more chances for things to go wrong. You could quickly find yourself spending more time on the phone to various customer support departments. Adding new payment types are slower, frustrating and can impact the customer experience and the cost of doing business.
End to end commerce
The challenge, for retailers is that the payments system is becoming more and more demanding with multiple payment options adding to the complexity of the system. For smaller retailers, especially, that’s becoming unsustainable which is why many are unlocking the potential of end-to-end commerce.
By bringing an integrated payment solution, merchants can manage all operations with one provider, it eases the burden of managing payments and makes it easier to maintain an up to date point of sale system.
A single solutions partner offers you more benefit including deployment of the latest technology which is constantly being updated to provide the latest features to satisfy the growing demands of your customers. It provides end-to-end capabilities with hardware, software, payments, payroll and services all from a single source making support seamless and more efficient.
A single solution can also help with a holistic approach to security. The more payment partners you work with, the more there is to manage and protect against cyber-attacks. Choose a provider that can manage the payment platforms more efficiently, manage a secure environment, deliver an end-to-end transaction processing experience and help you manage operations while focusing on the customer.