Retailers today face a complex environment, managing changing regulations, new payment methods, and emerging technologies like AI.
Alex Rhodes, global head of Unified Commerce at Adyen, emphasized the challenge for retailers in integrating various channels such as physical stores, e-commerce, mobile, and social platforms while maintaining a consistent customer experience.
Consumer Expectations and Payment Methods
Consumer payment preferences are rapidly evolving, and retailers need to keep pace. A significant 55% of consumers will abandon a purchase if they cannot use their preferred payment method.
Digital wallets, QR codes, and ‘tap-to-pay’ are becoming increasingly popular, with 27% of consumers now using their phones to make payments and 11% more adopting QR code payments each year.
Despite this shift, many businesses are lagging, with only 28% accepting digital wallets and 17% supporting buy now, pay later options both online and in-store.
The Rise of Social Commerce
Social commerce is gaining traction, with 75% of retailers reporting revenue growth after enabling shopping through social media.
In the past year, 44% of consumers made purchases via social media, with this trend being particularly popular among younger generations.
For instance, 63% of Gen Z and 57% of millennials have shopped on social media, with a notable number being first-time buyers.
Enhancing Checkout Experiences
Retailers are encouraged to optimize their payment processes for smoother transactions.
Mobile point-of-sale (mPOS) systems and self-checkout options can help reduce wait times and improve customer satisfaction. However, only 15% of retailers currently offer self-checkout, and 20% use mPOS solutions.
The adoption of advanced technologies like network tokenization, which can improve card authorization rates, is also limited, with only 16% of businesses implementing this practice.
Looking Ahead: Future Trends
Future innovations in checkout experiences are expected to enhance both efficiency and customer satisfaction.
Technologies such as AmazonGo’s ‘just walk out’ system are being adopted beyond groceries, including in sports stadiums.
Social commerce and metaverse payments are areas to watch. With 13% of consumers expressing interest in making more purchases in the metaverse and the launch of the TikTok shop in late 2023, these innovations are likely to become more mainstream.
By focusing on integrating efficient payment methods and enhancing the checkout experience, retailers can better meet consumer expectations and drive growth in a competitive landscape.
