Grow your businesses’ income through digital payments

In 2015, digital payments overtook cash for the first time, a trend that is expected to continue over the next 10 years. In the future, we may not need our wallet or purse to pay; in fact 54% of consumers are ready to leave them at home now if they had the choice.

It is clear that a new dawn is upon us but what is driving this change? Our recent Digitisation of Cash report[1] explored this phenomenon in depth.

Business is changing

The eCommerce revolution has enabled more businesses to offer their products and services online. Consumers can now pay for almost anything online or via mobile, from ordering flowers to paying for their taxi ride home. As a result, a greater number of physical transactions are now processed digitally.

The rise of contactless payments has meant that physical cash payments have reduced as consumers increasingly ‘tap and go’. The resulting speed is perfect for reducing queues and increasing the number of sales processed during busy periods. As a result, one in six card purchases on the high street are now contactless.

More businesses are now seeing card payments as critical to operations, offering consumers greater convenience and choice in how they pay.

Consumer expectations

Consumers are becoming increasingly accustomed to card and mobile payments. In fact, 25% of consumers only go into shops that take card payments, and a third of shoppers will only use cash if completely necessary.

Consumers are also now getting more used to phone based payments; smartphones are now critical to our connected lives, opening up new possibilities for a cashless world. 59% of UK consumers are said to have used their bank’s mobile banking app, whilst 72% have downloaded a retailer branded app.

Over half of customers say that they would like to leave home without their wallet, instead paying for everything via their smartphone. So it is hardly surprising that mobile payments are expected to grow three-fold by 2020.

As mobile becomes fundamental to our everyday interactions, it’s natural that these digital platforms will evolve to become the epicentre of commerce, connecting businesses and consumers globally.

Developments in technology

The contactless phenomenon is only set to rise now that Apple, Google, and Samsung have enabled near field communication (, a quick way of wirelessly transferring data between two devices in short-range of each other)  based payments in many of their handsets.

The additional verification required for the likes of Apple Pay and Android Pay means consumers can pay with contactless for transactions over the current £30 limit, helping further drive usage of mobile payments

Another opportunity comes from wearables, items of clothing or accessories that incorporate a computer, many of which enable payments. There are a number of different devices that are already vying for consumer attention, including bracelets, rings, and even coffee cups.

The Internet of Things, consisting of billions of interconnected digital devices sharing services and data, has meant smart technology can now be embedded into a vast network of items, each one with a potential for payment. We’ve already seen Amazon introduce the ‘Dash Button’ which can be stuck onto anything and is directly linked to the Amazon website.

How it impacts you

Digital payments offer many benefits over cash for businesses. They provide greater speed from acceptance to processing, improved security, and more efficient cost management. They also present a significant opportunity to unlock deeper understanding of customers.

Modern consumers shop across multiple channels, making it more important for businesses to track individual behaviour across these channels to ensure a consistent and complementary experience.

The digital footprints left by card payments means that businesses can start to use payment data to track performance and identify trends. As digital payments accelerate and cash continues to decline, it will become essential for businesses to use this data to understand the behaviour of their customers.

Smart till systems like My Business Hub can be the key to helping businesses unlock valuable insights into their business performance.  The all-in-one tablet comes with intuitive software which enables businesses to easily see product performance, and save time with automatic cash and card reconciliation.  This means you can stay ahead of digital trends and reap the benefits of this payments revolution.

 

[1] The digitalisation of cash, Worldpay 2016

 

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