As the retail industry evolves, payment methods are diversifying and multiplying. What used to be cashier-only has expanded to include mobile, contactless, digital, buy now, pay later, and more.

These shifts highlight how payments are increasingly driven by consumer preferences; payment methods change because the ways consumers want to pay are changing. As consumer trends continue to stretch and shift, the industry is quickly realizing that the only constant is change. For example, digital payments are growing in popularity, with over 90% of U.S. consumers having used some form of digital payment over the course of a year.

Additionally, more than half (53%) of Americans now use digital wallets more often than traditional payments methods. These statistics underscore the reality that what is considered traditional in payments will continue to evolve as time goes on. Quantity: Walking Through Modern Payment Methods With innovation driving the industry, we can expect payment methods to continue branching out and multiplying. Let’s take a look at some of the most popular methods today and the key benefits they offer consumers. QR codes QR codes have ushered in an era defined by convenience. Scanning a code to pay does not require any sign-ups or app downloads, making it an attractive option for consumers looking to avoid extra steps. Take a sit-down restaurant, for example.

If a QR code is provided on the receipt, it eliminates the step where the server collects and swipes the credit card. This streamlines the dining process, allowing groups in a hurry to complete their meal quickly and be on their way to their next engagement. Tap-to-Pay Tapping a card to complete a purchase instantly is highly valued by customers. It’s quick, simple, and accompanied by a satisfying “ding” that signals the transaction is complete.

Consumers have rapidly embraced this method as well. Visa, for example, reported in its 2023 earnings call that 34% of all face-to-face transactions in the U.S. are now tap-to-pay, a 10% from last year. Mobile Mobile payments are a great option for consumers with busy schedules.

The convenience of paying from various locations—whether from the couch, at a kiosk or checkout, or in transit— offers customers the flexibility to fit payments into their lives as needed. The mobile payments market is expected to reach $408.96 billion by 2029, a drastic increase from $94.51 billion in 2024. Here are a few other interesting statistics that highlight the growth of mobile payments: Apple Pay: Apple Pay has established itself as a go-to for many U.S. consumers; 90% of retailers now accept the method, and consumers use the service in 48% of their in-store mobile wallet transactions Google Pay: In Q1 2024, 35% of U.S.

consumers reported using Google Pay at the point-of-sale (POS) and 31% reported having used it online, a massive shift from what was 27% a year prior. Venmo: The total payment volume for Venmo also grew 8% in Q1 2024. Quality: Payment Options Must Be Accompanied by a Great Experience While offering a variety of payment methods provides many attractive benefits to consumers, ensuring long-term customer satisfaction requires more than just providing options. In the e-commerce sphere alone, 42% of consumers report that the number of payment methods doesn’t influence their choice, suggesting that, overall, offering numerous options may not be as crucial as retailers think. If a customer can’t complete a transaction smoothly, the number of payment methods available becomes irrelevant. Retailers risk damaging their relationship with the customer long before the payment process even begins. With the average adult consumer using more than four internet-connected devices across multiple platforms and channels, retailers must differentiate themselves by focusing on the entire payment experience rather than just offering a variety of methods. Ultimately, a quality experience outweighs having a large number of payment options. Technology and devices must function as promised.

Here are a few factors that retailers should consider when building out a full payment experience: Don’t forget about security While not glamorous and often invisible to end consumers, mastering security and compliance standards is crucial—they must go beyond merely being met. Data breaches are both incredibly expensive for retailers and harmful to consumers. Every part of the payment process must be airtight to protect consumers from potential issues and ensure support for various touchpoints, such as QR codes, mobile payments, and tap-to-pay options.

A reliable and agile technology stack built to trusted security standards enables retailers to quickly adapt to new consumer trends while maintaining compliance. Refine what is visible A quick and seamless experience is exactly what customers seek when completing a transaction. A swift checkout process that takes just a few seconds can be the deciding factor for customers when choosing which retailers to do business with, and it also strengthens the existing retailer-customer relationship. Convenience is crucial—whether in person or online, shoppers want to avoid unexpected pop-ups and error messages that create obstacles during their shopping experience. By providing an accessible and reliable payment process, retailers can ensure invaluable convenience. Building a Bridge Between Retailer and Consumers When retailers assure their consumers that they offer not only diverse payment options but also a secure, compliant, and convenient payment experience, they strengthen the relationship and foster long-term loyalty. For retailers, prioritizing the payment experience is a gift that keeps on giving, making it well worth their close attention. 0 SHARES 0 VIEWS Share on FacebookShare on TwitterShare on LinkedIn

By paymentsjournal
Aug 23, 2024 00:00
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