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It was unavoidable that the next major step in payments was going to come from Amazon. Yes, together with the statement that they’ll be starting a checkout-free shop in 2017, the omnichannel customer experience is set to be transformed (admittedly on a small scale, for now).
The technologies at the Seattle-based Amazon Go store will allow customers to pick their products and then leave without queuing’s hassle — the bill will be charged back to their Amazon accounts. Innovation indeed, and it will be interesting to see whether these stores make it to the UK…
This is an impressive advancement in the manner in which technology. PayPal was an early innovator to direct the way for businesses and consumers receiving and sending money.
Ever since then, tech Android and giants Apple have staked their claim with their wallet apps’ evolution in the payments marketplace.
Samsung is also keen to break into this area, although the launch of Samsung Pay in the UK has only been pushed back to 2017. Contactless and mobile wallets have made our wallets seem archaic. But how are consumers responding, and (past Amazon) what is the future for mobile obligations in 2017?
What is the future?
Consumers in the united kingdom have been quick to take advantage of the convenience wallets offers. The trend is sweeping throughout Europe. Commerce analyst Juniper Research has estimated that 16 million users will have forced contactless payments via their mobiles across Western Europe. We’re also seeing mobile payments crossing over into foreign exchange.
This is place to deliver new levels of simplicity to consumers managing their money when overseas, such as auto top-up from your home country bank accounts to the program, and the ability to block your account from the own phone (handy in a crisis).
This season has seen Apple Pay begin to become the norm in retail, together with giants like Argos, Boots and Marks & Spencer which makes it a payment option for clients. Starbucks Mobile Order and Pay app has also been applauded by the industry, with a panel of experts awarding it third place in our 2016 Digital Innovations Retail Report.
But, although the idea of cellular (or electronic) obligations is well known, adoption is still relatively low. What’s this? To put it differently, the main stumbling block is customer confidence.
With data hacking scandals every week, hitting the headlines, it’s clear that clients are protective about sharing their personal details. Research by Recode discovered 40 percent of consumers were reluctant to incorporate their credit/debit card information.
This wariness is being addressed by technology companies and researchers throughout the world, and understandable. Voice, fingerprint and face recognition are security measures that are pretty established on mobile. But pupils at California State University Fullerton are taking this to the next level with study to just how vein patterns, retinas and 3D face images can be built into security programmes. Futuristic indeed.
Reassurance into hesitancy
Mobile payment providers are aware of customers’ hesitancy and are working to provide reassurance. Apple Pay has stated privacy and safety are at the core of its technologies.
When consumers use the program at a store, cashiers will no longer see card information or the client’s name, helping to decrease the potential for fraud. Likewise, Samsung is attentive to the importance of maintaining financial and personal information secure. Android Pay uses accounts, which means debit or credit card numbers are not sent with any obligations.
Contactless is. The British Banking Association revealed that the amount of payments outstripped those made in 2015 to .
I guess this simplicity with contactless is because consumers have an existing relationship with their banks, and also the experience is not far removed from the traditional chip and pin method.
With wallets, the upcoming step is blending loyalty strategies for retailers particularly. We all know from our Unfaithful Consumer study that merchants face a challenge of keeping customers loyal.
The temptation is to pay up quickly and forget about locating their loyalty card, when they are in a rush. Online shopping, together with all its distractions, can be a encounter that is disconnected. The chance to keep customers engaged with their products and brand for longer can’t be discounted.
By partnering with prepaid and gift firm Blackhawk Network Apple Pay has taken a step forward in encouraging consumers to participate. T
Hey have worked together to build technology that permits customers to save, manage and make payments with loyalty and gift spouses, such as Amazon.
At the moment this program is tied to Blackhawk partners and it remains to be seen whether this can go international, but is a clear indication that there is huge potential to incorporate devotion and payment point trades.
This type of simplicity and convenience is exactly what consumers need now. Our research found 55 percent of UK consumers rate convenience.
In a fast-paced world with demands on our time, this lighter, thinner approach to life is something consumers will no doubt embrace if companies can offer it in the way
With the capacity to provide a lively, experience that is convenient, the cell wallet could turn into a powerful advertising channel. However, it’s early days — it remains to be seen how consumers will respond to the technology and how comfortable they are supposed to retire their loyalty cards that are plastic.
For companies, encouraging repeat purchase, especially retailers and loyalty is in the crux of their marketing and advertising strategies. With the support of the modern technology, a strategy can be put in place to achieve both.
For consumers the shift towards a more compact approach that makes their lives more hassle-free, easier and quicker will undoubtedly be welcomed.
