Payment Options: The Importance of Going Digital
July 11, 2022
While digital payment technologies such as Apple Pay, secure online credit card payments, and PayPal have been options for several years, the coronavirus pandemic forced the use of these payment options for daily transactions. Consumers who used only cash had to quickly adapt to paying for groceries, household goods, living expenses, and more using just their phones or laptops.
The need for digital and contactless payment options disrupted the industry. Businesses had to immediately adapt to their customers’ needs by changing their accounts receivable models to accept these new digital payments. The savviest companies seized the opportunity to tailor their products and services to provide client-driven seamless shopping experiences. They understood that making consumer spending easier would equal success despite the difficult circumstances.
Who Uses Digital Payments?
Customers who grew up with smartphones and computers have long been comfortable with digital shopping experiences and have driven the demand for seamless experiences. Purchases made via computer are now traceable on phones. Special offers are available through social media, and order tracking is easy with text messaging. People who did not have regular access to technology have had to embrace technology or risk their quality of life. Digital wallets, buy now, pay later (BNPL) arrangements, and using apps to order and pay for food deliveries are no longer a mystery to most people, and the desire for touchless payment transactions just makes sense.
Consumers using remote shopping technology have also learned hard lessons in security protocols. Even though malicious hacking and identity theft is more prevalent than ever, the tolerance for memorizing long passwords or entering 16-digit credit or debit card numbers for multiple transactions has decreased. While consumers rightfully insist on security for their transactions, businesses have worked to provide financial information protection using cloud services, encryption, artificial intelligence, and blockchain technology.
Reach Out and Touch That Keypad…or Don’t
New and innovative ways to promote hygiene include touchless transactions. Near Field Technology or Communication (NFC), is one of these solutions. NFC operates through radio wave transmission between two enabled devices. For instance, at the grocery store, a consumer can employ a smartphone app or a chip-enabled credit card at a sales terminal instead of handing the card to a cashier. Customers in some stores point their phones at the PIN Pad to complete their payments. Consumers can take advantage of loyalty programs for using NFCs. And banks and merchants have mitigated potential NFC security risks by incorporating two-factor authorization like facial or voice recognition that verifies the identity of customers using touchless technology.
Does Digital Payment Technology Stop Here?
No. In fact, this is the beginning. Now that the digital payment groundwork is solid, businesses can access the trove of shopping data created by digital payments. Consumer insights, shopping behaviors, and demographics add up to a gold mine of information that drives future technology and innovation. Personalized shopping is the norm now, and data-driven decisions inform the future of the company’s marketing strategy.
Contact PayTech Trust for more information on NFCs and additional information on providing a seamless shopping experience for customers. Understanding how NFC helps build a seamless shopping experience can help your business and improve a customer’s shopping experience.
PayTech Trust offers secure merchant accounts and online credit card processing for businesses of all sizes. With our collaborative suite of services and best practices to integrate new payment trends, PayTech Trust has the experience and the expertise no business can afford to do without.Contact Our Sales Advisors