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Cha-Ching: Five Digital Payment Trends to Watch
Will your company be implementing any of these trends in 2020?
In a recent statement from the Australian Bureau of Statistics, online retail represents 6.6 percent of total retail turnover compared to 5.6 percent in December the previous year. This, as all retailers are aware, means that digital shopping is only set to expand further.
As digital retail advances, so do digital payments. Australia saw the true ignition of Buy Now, Pay Later (BNPL) a few years ago, and now there enough platforms in the landscape to sink a ship. Despite the talks of regulation (or lack thereof) of BNPL, and a saturated market, BNPL shows no signs of slowing down. So, what can we expect next from digital payments?
Sweden is one of the most cashless societies in the world. According to CNBC, more people from Sweden carry around cards than cash. Although this isn’t exactly a link to e-commerce, it does suggest that digital payments will outshine traditional payment methods in the not-so-distant future. From a swift payment using BNPL or cryptocurrency, there are not-so-subtle hints that Australian shoppers will rely on digital payments at a higher rate than physical currency.
Further Developments in Personalisation
In a hyper-digital world, it’s becoming more prevalent than ever to be cautious when shopping online. According to Forter, 42 percent of e-commerce companies do not believe they are adequately equipped to tackle online fraud, especially at the rate that it’s advancing. With a personalised payment structure, this can aid in the reduction of fraudulent purchases. An example of this includes
When each trend for CX, AI or other retail tech is introduced, it promises to remove the extra friction of the customer journey. It’s no different with payments – in 2020, whether it’s biometric or BNPL, the biggest trend the industry s set to see is the removal of friction. The smallest step of removing one or two clicks from the checkout is all it takes to create a smoother and more enjoyable customer journey. Retailers that implement one-touch systems such as PayPal, BNPL or even face recognition within retail apps are moving one step towards a completely frictionless future.
Buy Now, Pay Later isn’t going anywhere, but it’s not exactly a new trend either. In 2020, e-commerce will receive a shakeup with the introduction of thorough regulation and credit checks. “Consumers are looking for that trust to be built, and to partner with people who believe the experience they’re getting is safe and sustainable,” said Fran Ereira, GM of Klarna Aus. “When we look at the regulatory landscape, Australia is playing catchup, if you like. So what I think is what really appeals to retailers.”
Anyone who owns a smartphone that was produced any time after the year 2016 understands the frictionless steps for making a payment. Simply using their fingerprint, and now their face, purchasing an item online has never been easier. These are known as biometric payments, and they’re going to smash the e-commerce landscape in the future. For iPhone users, any retail app has the functionality to include biometric payments, but M-Commerce is yet to follow in its footsteps.
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