By Bessie Hassan, Money Expert, finder.com.au
New payment innovations have created a cashless society where customers can now make payments using their wallets or mobile devices. As these modern payment methods become the norm, it’s essential that businesses adapt quickly in order to remain competitive.
Whether it’s contactless payments, mobile wallets, or providing the infrastructure for in-store finance, there are now multiple ways customers can make transactions to suit their needs and it’s up to businesses to make these readily available.
While these payment technologies provide greater convenience for the customer, they also provide businesses with higher conversion rates and rich insights related to customer behaviour. Combined with this, the payment methods also allow businesses to provide a higher level of customer service with greater security.
Here are a few new ways to pay, and how your business can benefit.
1) Higher conversion with interest-free payments & in-store finance
Providing interest-free payments means your customer can make purchases either online or in-store that they pay back interest-free. Both Afterpay and Openpay have partnered with countless retailers, so it’s worth jumping on board if you haven’t already done so.
With in-store finance, you can partner with credit providers or you can offer your own finance in-store. For instance, you can promote credit offers such as CreditLine from Latitude Finance that’s currently available at several retailers.
Having the option of interest-free payments and in-store finance could see your sales volume grow as customers may be more likely to convert. It removes friction of a complicated and lengthy checkout process and providers customers with the resources to complete a transaction.
2) Value-add with ‘tap and go’ mobile payments
This is how it works: for purchases valued under $100, customers can ‘tap and go’ using their debit or credit card, and if they have Apple Pay or Samsung Pay, they can pay using their mobile phone.
There are some features of mobile payment systems that provide you with valuable information, such as WAP billing. Online purchases made through WAP billing can provide richer media to customers such as games and apps, and it can provide additional features including previews and delivery details. Providers such as Bango and Netsize are the most common players in this space.
3) Tailored marketing with digital wallets
As you can access consumer’s credit card information, shipping address, and other payment data, supporting mobile payments will give you greater consumer behaviour insights.
What’s their preferred payment method? How much are they spending, on average? Where do they live? This information can help you target your marketing communications at a higher level which allow for a more efficient allocation of resources.
In the next few years, new payment methods will only become more advanced so it’s important that you’re across new developments in this area. Whether it’s providing in-store finance options through instalment plans or providing the technology to facilitate mobile phone payments, there are many ways you can embrace new payment methods to provide a superior customer experience and reap the financial benefits.