Mobile wallets such as Apple Pay and Android Pay have certainly been celebrated for facilitating easy payments and better customer experiences.
That said, mobile payments still only account for less than 8% of total purchases globally according to Oxford Economics’ latest report on the Future of Money, so despite the buzz around them, they’re still very much in their early phases of adaptation.
Customers that experience friction in their buyer journey will be more likely to abandon the transaction in favor of a different brand or product that offers a smoother experience.
Speed and creativity can deliver results and a holistic user experience will become more crucial, especially as we look towards the future. Today, there are a few trends and important innovations that are shaping the future of payments, which help brands grow faster by creating more engaging experiences with their customers.
If you’ve been watching mobile wallet trends and waiting to see if they will stick, it’s time to take action. In the Oxford Economics study, two significant outcomes stood out: The fastest growing companies are accepting mobile payments. Companies with at least 11% annual growth are also using mobile payments in 43% of cases. This isn’t a coincidence and this trend isn’t going to fade away.
Consumers want convenience and ease, and mobile payments are no exception. In fact, the main reason for slow adaption of mobile payments mostly stems from skepticism about security and fraud protection, not from the methods themselves. However, experts repeatedly report that these concerns are unfounded and can be overcome with consumer education.
Globally, 39% of consumers surveyed pay using mobile at least once a week and this percentage increases to 58% in developing countries. So the bottom line is, if you haven’t done so already, it’s time to jump onboard with mobile payments and more importantly, educate your customers on the safety of their payments and build their trust.
Messenger bots are changing the way merchants of all kinds do business. As they increasingly offer opportunities to interact within chat environments, customers will engage more and look for new ways to buy their goods/services. Recognizing this, payments providers are developed solutions that integrate payments into chat. This technology capitalizes on conversational, or social, commerce and enables chat technology, either human or AI powered , to sell directly to customers within the chat environment they are already in.
Picture a customer chatting with a service bot on a company’s social media pages or website. The customer requests a product that they couldn’t find on the site.
Instantly, the bot returns with the purchase link and the option to buy the product on the spot. Or perhaps it’s a travel related conversation and the customer would like a seat assignment or an upgrade. Again, the option can be sent directly to the customer within the chat, and he or she can click to purchase immediately. In both cases, consumers are directed to the exact service or product they are looking for and integrated payments can facilitate easy purchases, without having to leave the messenger environment. The journey is easy and smooth, and as a result customer satisfaction rises and conversion increases.