The payments landscape has been evolving at a rapid clip over the past decade, thanks in part to massive demand for electronic payments and a quickly growing base of consumers who would rather pay for their goods with anything but cash.
That trend won’t stop anytime soon. In fact, by 2020, 40 percent of U.S. consumers will be made up of Gen Z. This demographic doesn’t remember the world before the internet, Amazon, and apps. They accept nothing less than digital, and they won’t be constrained by anything they can’t carry in their pocket.
When it comes to the demand for efficiency, efficacy, and immediacy, Gen Z is a tidal wave that will wash away any institution not willing to adapt. And the first place to undertake that adaptation? Mobile payments. Take a look below at some of the growing trends of the mobile payments industry – which is projected to become the second most common payment method after debit cards by 2022.
Mobile Point of Sale
Imagine a store with no checkout, replaced by sales staff carrying mobile-point-of-sale (mPOS) devices. While not so viable in places where you’re buying a large volume of items such as a grocery store, stores that sell at lower volume and higher cost could benefit greatly. Your staff member is right there with the customer, answering their questions and pointing them in the right direction. When they make a choice, the sale is conducted right then and there and the customer gets to walk out the door with their purchase immediately.
These same devices can be taken out of the brick-and-mortar location as well and used at trades shows, festivals and food trucks. An mPOS can go anywhere your customer does, and accept payments from phones, watches and credit cards.
People are on their phones constantly. Whether you think that’s good or bad, it’s incredibly important to take it into account when considering how you accept payments. Anyone who has spent any amount of time learning about online purchasing knows that the checkout cart is where most sales die. In fact, every redirection, click and new page that a customer experiences from the moment they decide they want an item to the moment they click “Confirm Purchase” is another hurdle to the final sale.
What if your customer could purchase directly through your Facebook or Instagram page without ever needing to redirect to your website? 60 percent of Instagram users claim they find new products they want to purchase on the app. The more streamlined your payment process is, the more impulse buys you’ll get.
Retail, Wholesale, and Automation
Over the next few years, retail and wholesale are expected to grow into interactive, highly-automated systems. Let’s make two assumptions.
First, payments and service development will continue to be customer-driven and focused on efficiency. Second, that these customer-driven systems will continue to innovate and change, embrace new technologies, and develop extremely tailored solutions for vertical markets.
Mobile payment solutions embrace this automation, and go hand-in-hand with the dream of worker-less stores. From epiphany to delivery, the entire sales process runs through your phone, no matter where you are. This leads to lower overhead and a faster sales process. And if Gen Z wants anything, it’s speed.
The old spy-novel standby is the trusty fingerprint scanner, but biometrics have evolved. Face recognition, iris and hand scans, DNA tests and voice recognition – they’re all real, and rapidly overtaking traditional methods like PINs and passwords when it comes to identification and authentication.
Fraudsters never stop innovating, and mobile payments must continue to combat them at every turn. Biometrics are a more reliable way for merchants to verify the identity of their customers in order to prevent scams.
When it comes to security, your phones built-in biometric security means that not only are mobile payments fast and efficient – they’re also very safe.