Payment Choice Matters to Customers. Here Are the Keys to Making It Matter for Your Business
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The topic of the NRF ’24 Big Show welcome message by John Furner, president of Walmart US and CEO and Chairman of the National Retail Federation, is “Making it Matter.” The NRF Big Show agenda teases his presentation with the statement that the decisions you make today matter more than ever – and the challenge is more complex because you are adapting to changes in many areas of your business. You need to determine the best way to navigate your company through a time of economic uncertainty, risks to the global supply chain, and disruption from artificial intelligence (AI) and other advanced technologies. You also need to meet new expectations in a consumer-driven world. However, it’s important not to overlook the importance of another facet of your business: payment choice.
Why Payments Matter
The 2023 Global Digital Shopping Index: U.S. Edition from PYMNTS and Cybersource describes 80% of today’s consumers as “digital enthusiasts” using digital features during their shopping journeys. When researchers asked more than 13K consumers around the world what the most important or highly important features of digital shopping are, payment choice was first on their list. In fact, the ability to use their preferred payment methods topped the list of 33 features, ranking higher than free shipping, rewards, price matching, and return experiences.
Changes in digital payment adoption also confirm the importance consumers place on payment choice. McKinsey’s annual Digital Payments Consumer Survey found that for the first time, more than 90% of consumers have used some form of digital payments in the past year.
Additionally, Forbes Advisor reports that 53% of U.S. consumers now use mobile wallets more than traditional payment methods. Moreover, 51% say they’d stop shopping with a merchant that doesn’t accept them. Additionally,
The bottom line is that consumers want payment choice, both in-store and online, and it’s influencing their purchasing decisions.
Payments: Making it Matter
Considering the importance your customers place on payment choice, you and your team need to address it strategically. In the past, the choice of which payment technology to implement may have largely been an IT decision. However, additional stakeholders, for example, from your customer engagement and marketing teams, will have insights that can help you choose a solution that delivers experiences that can lead to an increase in customer loyalty.
You also need to be strategic about making the best use of the computing power in your payment terminal. Next-generation payment technology leveraging Android-based operating systems gives you the option to run business applications to enhance efficiency and customer experiences. For example, you could create a solution that gives your customers direct access to their loyalty accounts or the opportunity to provide feedback with a click. Your store locations can also use the payment terminal for staff and inventory management to streamline processes and save time. It can also enable you to accept alternative payments, like buy now, pay later (BNPL), at the point of sale.
Stakeholders in your organization can also provide input on the best places to accept payments – most likely not only at an attended checkout counter. Using operational and industry data, you can determine the best way to eliminate waiting in line and give your customers on-the-spot service with mobile payment devices, self-service kiosks, or softPOS on consumer mobile devices.
Reimagine Your Operation
A broad range of payment technologies and solutions are widely available, allowing you to deliver the payment experiences your customers prefer and, if expertly implemented, increase customer satisfaction. Additionally, making smart decisions about implementing flexible technology and solutions that can adapt as your business expands and customer behaviors change will allow you to stay agile and competitive.
Ingenico demonstrated some of the latest future-forward innovations at NRF ’24 and always welcomes questions about how to use them to enhance operations. To learn more about making payments matter to your overall business, contact us.
