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5 trends that will transform the payment industry in 2020.

Payment system trendsThese days, merchants want more from their payment systems. They’re looking for faster, better, and more flexible ways for their customers to pay and their demands are driving changes in payment technology. Keep an eye on these five trends as you prepare your business for 2020.

Greater support for international sales.

As ecommerce continues to grow in popularity around the world, payment systems are evolving to support greater sales volumes. Whether or not your business currently deals with international customers, it’s important to recognize the trend toward borderless shopping and payments. Big ecommerce retailers in countries like the United States and China will only get bigger in 2020, which could have an impact on your sales if customers know they have more flexibility paying online than they do at your store.

Convenience versus flexibility.

Should you develop a branded payment app or let customers pay using popular mobile wallets? The answer is likely to be an ongoing debate in the coming year. Customers desiring flexibility gravitate toward “open” options they can use to pay anywhere. On the other hand, companies seeking to increase value may benefit more from “closed” payment apps usable only for purchases at their own locations.

Changes in security and authentication.

Signature requirements for credit and debit card purchases are already being phased out, and more security changes are on the way. Look for increased reliance on blockchain technology and smart contracts to secure and automate payments.

Evolution of contactless payments.

Mobile wallet and contactless card adoption have been slower in the United States than in other areas of the world, but this could change in 2020 as mobile payment technology advances and card companies begin to offer more contactless options. More stores may embrace the Amazon Go model, going beyond contactless payments to allow customers to shop and pay without going through a checkout line.

Homing in on customer experience.

These and other payment trends serve the greater goal of providing a painless payment experience to merchants and their customers. Your business should be identifying pain points in the payment process and seeking convenient solutions to create a “frictionless” path through the entire sales funnel. Statistics confirm doing this will be well worth your time and effort, given:

  • 96% of consumers identify customer service as a significant factor in brand loyalty.
  • 86% of customers will pay more for a great experience.
  • Companies offering “superior” experiences generate 5.7 times more revenue than the competition.
  • Customer service costs are up to 33% lower for companies focused on “high-quality” customer experiences.

Given these statistics and upcoming trends, it’s no wonder customer experience is a big differentiator between payment systems. If you want to encourage loyalty among new customers and increase sales from existing customers in 2020, look for a payment system that emphasizes convenience and offers incentives.

Is your business ready to adopt this new payment technology in the coming year? Update your point of sale system and online payment methods ahead of your competitors to cater to changing consumer habits. Once you do, you’ll be able to provide the seamless payment experience your customers want.

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