5 things to know about retail payments in 2015
TRANSCRIPT
5 Things to Know About The State of Retail Payments in 2015
5 Things
To Know About
The State of Retail Payments
2015
1.Payments are growing more complex for retailers to manage
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At least 1/3 of retailers in our
Payments survey reported accepting
as many as 6 different kinds of
payments
Retailer-branded credit card
Digital gift card
Plastic gift card
Online card-not-present
International payments
Mobile payments
What this means for retailers
This complexity will only grow.
• CNP fraud is growing as EMV becomes more widespread
• Cross-border transactions are growing – particular challenge for smaller retailers who grow global before they saturate their home market
• Going local doesn't resolve complexity – payment types online are a visible way for consumers to gauge whether a retailer is genuinely "local”
• Digital gift cards combine with digital wallets to create complexities all their own
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What this means for retailers
Evaluate and prepare your payments infrastructure today.
• Are digital and physical payments infrastructures one and the same? Or two different animals? Should they be one common one?
• What is your company's current long-term mobile strategy? Does it have an impact on payments?
• What is your company's current long-term loyalty strategy? Does it have an impact on payments?
• What is your company's current long-term promotional strategy? Does it have an impact on payments?
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PCI has slowed retail payment innovation in the
past.
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But those days are gone
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• A growing number of retailers recognize that payment security and customer data security must go hand in hand
• Smaller retailers (<$50M revenue) see payments as a way to be perceived as innovative by consumers
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Are you evaluating data security holistically?
Emails can be just as valuable to thieves as credit cards...
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What this means for retailers
As large retailers tighten up their security, smaller retailers are becoming more attractive targets – which means they must bake security concerns into any evaluation of payment innovations.
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What this means for retailers
But all is not roses for payment innovations:
• Under-performing retailers focus on payment costs over the risk of costs associated with data breaches
• Payments is a critical part of the customer experience, but not considered as part of retailers' omni-channel strategies
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3.
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What this means for retailers
Omni-channel strategy MUST take into account payment as
one of the critical moments in the customer experience.
Many retailers are looking at a potential convergence between eCommerce
platforms and point of sale – payments needs to be considered as part of that
evaluation, especially because there are a lot of complex rules around the timing of
order acceptance, payment authorization, and shipment.
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What this means for retailers
Mobile payments is a bright spot
• Retailers see mobile and digital wallets as an opportunity to offer differentiated customer experiences
• 52% of retail respondents say making it easier for consumers to pay with mobile is a top operational challenge
• Fashion retailers drive the perceived value of digital gift cards and Apple Pay
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4.
How far are you willing to go to create a differentiated experience?
• Starbucks has been a pioneer in payments innovations.
• But you can outsource your payment process too – there are lots of vendors out there who are experimenting right now.
• Just be careful how much or how little you outsource – you still need to own the customer experience.
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What this means for retailers
Follow the process from your customer's perspective.
• The payment experience across channels should feel as similar as possible – do the same people own payments across your touchpoints? Have you sat down and looked at your payment process from the customer perspective across all of your digital channels, side by side?
• For example:• Why can I buy an e-gift card, but I can't
add one to your mobile wallet? • Why does a search for “gift card” on
mobile yield a 404 error, when you sell gift cards on the full site experience?
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What this means for retailers
Gift card
Apple Pay is in the spotlight
• Retailers rate Apple, VISA, MC, and Paypal as payments thought leaders today
• Apple Pay wins the branding war over NFC payments – 30% of retailers say Apple Pay is very valuable vs. only 21% for the non-branded NFC option
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• There is still much more room for Apple Pay: Retailers' interest in Apple Pay far exceeds their current adoption
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Retailers want a modern message from payment
networks and card issuers. But retailers
shouldn't be passive about the changes
coming their way. They have opportunities to influence the future.
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What this means for retailers
Apple gets a lot of credit, but retailers want to hear from
established industry players too
What these payment trends mean for solution providers
• You have a leadership opportunity to help retailers sort through the noise
• Provide future-proofing checklists for retailer payment infrastructure
• Make sure to talk about costs AND risks. Some solutions providers are combining both by creating "breach insurance" services
• Get ahead of POS/eCom convergence – is it real? Who will the players be?
• Have a strong story around mobile payments
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Where did these insights come from?
Retail Payments: Consumer Control And The Need For Speed contains analysis of the business drivers, opportunities, and organizational constraints surrounding payments' role in retailers' overall customer engagement strategies.
• Detailed retailer pain points around payments
• Adoption plans & budgeted projects
• Survey of 117 retailers worldwide
• 17 charts and accompanying analysis
Download your copy today! (Registration is required)
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What Is RSR?
• Market Intelligence, focused on retail
• Context: the business challenges & opportunities that drive technology investments
• Pragmatic insights
• Powered by extensive retail experience
• Fueled by a deep bed of research data
• We help retailers keep their IT strategies aligned with corporate objectives
• We help solution providers align their products and messages with retailers’ needs
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