14 Jun 24

Revolutionizing Retail: Meeting Consumer Payment Demands in 2024

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“Consumers are demanding payment solutions that are fast, convenient, secure, rewarding, and flexible”

Here there are. Here are what consumers want in 2024, according to VISA & PCMI global data in their report “4th edition of the Visa and PCMI Innovation Study”.

And what the consumer wants, the consumer gets, but the question is and still remains: how? The good thing is that data records are now providing clear evidence that the answer lies in the digital ecosystem.

The Digital Ecosystem's Impact on Retail

How does this digital ecosystem influence Retail? How does new consumer behaviors transform the world of Retail? How can retailers support and answer consumer request of “Fast, convenient, secure, rewarding and flexible” payment solutions?

In WorldPay Global Payments Report, it is stated that mobile payments will grow from $4.5T in 2021 to reach $10T by 2026 as well as for new digital payment platforms usage (Cash App, Afterpay, Klarna etc.) that is expected to reach $13T by 2027. It is also stated that in 2023 wallets accounted for 50% of global e-commerce spend and 30% of global Point of Sale (POS) spend. These figures highlight the establishment of digital payment methods in commerce.

Accepting all payment methods

Retailers must accommodate a variety of payment methods to meet consumer expectations. These include: Cards (Credit, Debit, Prepaid), Digital Wallets, Account to Account (A2A), Buy Now Pay Later (BNPL), Cash, Cryptocurrency.

Here are the consumer payment trends that counts in 2024 and the consumer is expecting to use them at the counter in his favorite store or online. But each of these payment methods are used at different scales and differently worldwide.

According to WorldPay Global Payments Report, Digital Wallets is the number 1 payment method in e-commerce reaching 50% of global transaction value in 2023 and 30% in POS payments in-store which confirms its number 1 position of payment method worldwide.

In the second seat, we have cards with 22% of global transaction value in 2023 in e-commerce and 27% in POS payments. We observe a steady trust in cards transactions which proved consumers trust in this technology with 33% share of customers who would specifically choose credit cards for high value purchases over other payment methods.

In the next seats, we have Cash (2% Cash on Delivery in e-commerce and 16% in-store) and BNPL in e-commerce with 5% share of global transaction value, a new option that isn’t as used as predicted with a 10% drop in general usage of pay later plans over the past six months but seems to attract younger generations like GenZ.

Percentage of transaction value in 2023 per payment methods_0.png

Regional Payment Method Preferences

It is interesting to analyze regional payment methods usage to add some substance to these global data.

  • Asia-Pacific (APAC)

Digital wallets dominate due to the widespread use of QR codes and platforms like Alipay and WeChat Pay. This is supported by real-time payment rails from central banks and banking associations.

  • Europe, Middle East, and Africa (EMEA)

Europe is traditionally card-based but is gradually adopting digital wallets, driven by the digitization of physical cards. In contrast, the Middle East and Africa still rely heavily on cash, but mobile money solutions are fostering a shift towards digital payments.

  • North America (NAR)

While physical cards have a strong presence, digital wallets are gaining traction, spurred by e-commerce and pass-through card models like Apple Pay and Google Pay.

  • Latin America (LATAM)

Account to Account (A2A) transactions are prevalent, particularly in Brazil, due to the success of the Pix instant payment system. Digital wallets are expected to rise in popularity, mirroring trends in other regions.

What does these numbers mean for Retailers?

Digital Wallets are already number one in some countries and are highly ranked in most of the countries worldwide and will take the number 1 seat in the next years to come in e-commerce transactions first and then in POS transactions because of the online adoption.

This payment method opens the gate of the digital ecosystem and not only makes payments easier and fit to consumer request, but also enables new services for Retailers.

But to ensure consumers can pay how they want, Retailers must be equipped with the adequate terminals and furnished with the right solutions. At Ingenico, we designed AXIUM payment solutions, that offer different category of terminals fit to different usages, including for high transaction volumes, built to last for years and fit to accept all payment methods. If you want to discover Ingenico’s Retail payment solutions, check our Retail PIN Pad devices,  and our Retail Mobility devices.

Enhancing Commerce Experience with Value-Added Services

With the establishment of e-commerce as a must in the world of payments, its influence in the POS world is real and drives the transformation of in-store experience.

In a paper by Finextra & Ingenico, Scott Frisby, Head of Strategy at Elavon explains his view on the ubiquity and open source capability of Android devices :

This means we can offer merchants our own software, or an end-to end commerce management software. It’s about being able to put all of these different applications on to a smart device, which is no longer just a standalone terminal but a broader integrated e-POS offering with a huge scope of services.
Scott Frisby, Head of Strategy, Elavon

By opening the scope of possibilities with open source technologies such as Android, POS devices are now enabled to create new experiences and for retailers to gain in competitivity.

What types of value-added services can we get?

Ingenico partners with a number of solutions partners that embeds their solutions on AXIUM payment terminals in different areas. Here are few examples:

  • Loyalty
    • Empower local merchants with tools send personalized offerings to customers through vouchers and cashback with Izicap.
    • Enable merchants to offer real-time card-linked incentives (cashback, points for travel, points 4 value and more) in a white-label format with Mobi724.
    • Allow merchants to effectively offer gift cards and loyalty programs directly from the terminal with Paystone.
    • Enable merchants to capture customers’ opt-ins, create personalized promotions, enable seamless online to offline shopping experiences and secure loyalty point retrieval and redemption with ProofPOS.
  • Insurance
    • Seamlessly integrate warranty, insurance and other protection solutions into the customer journey with Cover Genius.
  • Retail & Hospitality Solutions
    • Allow merchants to manage sales and customer collections from anywhere in store, avoiding the need to queue at the till and optimizing the shopping experience with RoverCash.
    • For hospitality, provide an integral solution that enables Ingenico’s terminals to function as a management tool, optimizing processes and sending orders directly to kitchen, improving efficiency and saving time for staff with AirKitchen.

As you can see with the solutions listed above, these value-added services enriches the consumer experience, in various merchant industries through a single platform with AXIUM.

Elevating the In-Store Experience

With rapid growth of e-commerce, brick-and-mortar shops had to reinvent themselves to bring back consumers in-store. Either it is with Augmented Reality like IKEA whose mobile app allows customers to visualize how furniture and home décor items would look and fit in customers’ own spaces, or boutiques with strong artistic directions like Gentle Monster in South Korea, the shopping experience is more challenged that ever.

The Point of Sale also transforms to accompany retailers and merchants in this evolution. At Ingenico, retailers can get their terminals color-branded to add the final touch to the consumer experience at the Point of Sale.

Ingenico_Customization_AXIUM devices.png

But the experience can also be fueled with the digital ecosystem to create omnichannel experiences. As mentioned in the Ingenico and Edgar, Dunn & Company research paper:

it is apparent there is an absence of standardized omnichannel journeys. Therefore, Payments Service Providers (PSPs) that can effectively adapt and learn from their merchants will be well-positioned to develop more standardized omnichannel experiences that cater to the needs of multiple merchants. This ability to adapt and learn will be crucial for PSPs to thrive in the evolving retail landscape, where seamless omnichannel experiences are becoming increasingly essential for customer satisfaction and business success. Exchanging data with logistics and parcel couriers and serving as the centralised information hub for all payment-related activities for the merchant will help support omnichannel experiences. This can empower merchants to create seamless and consistent customer experiences across all touchpoints, regardless of the specific vertical or product category. Such an approach will create client stickiness and a more integrated offering.
Ingenico and Edgar, Dunn & Company research paper

In conclusion, the retail industry is undergoing a significant transformation driven by evolving consumer demands and the digital ecosystem. Retailers must adapt to these changes by embracing diverse payment methods and value-added services. Ingenico's AXIUM payment solutions provide the tools and support necessary to navigate this transformation effectively.

By leveraging advanced payment terminals and integrated value-added services, retailers can gain a competitive edge, enhance customer satisfaction, and optimize operational costs. CEOs can unlock new revenue streams and cater to diverse industries, merchant acquirers can accelerate market entry and enhance merchant satisfaction, and Operational Staff can achieve high efficiency and operational stability.

As digital wallets and other innovative payment methods continue to gain traction, retailers must equip themselves with the right tools to stay competitive. By embracing these advanced payment solutions and staying ahead of technological trends, retailers can ensure they meet the evolving demands of consumers, providing a fast, convenient, secure, rewarding, and flexible payment experience that will drive business growth and customer loyalty.




Corporate Publication

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