We are living in the era of digital transformation and digital payment technologies have vastly shaped the way we shop. The retail industry witnessed a paradigm shift in the last decade, from physical stores to online shopping platforms, with consumers seamlessly adopting digital experiences across all walks of their lives.
If there is one thing we have learnt in recent times, it is the importance of being agile and adopting a growth mindset. What does this mean for businesses and merchants? With continuous growth expected, here are some digital payment trends business leaders need to prepare for.
As consumers feel the effect of the economic downturn, we will see a shift in payment habits. More conservative, smart shopping behaviours will appear. Rewards and deals are important to grow and entrench current customers. A loyalty programme or special deals for returning customers are excellent ways to reward your customers for repeat purchases and loyalty. A well-planned and executed rewards programme will also help attract new business, increase turnover and build trust.
As digital adoption increases, new doors are opened for fraudsters to engage in various types of scams and frauds such as phishing, identity theft and online financial fraud. Fraudsters are especially active in retail, classifieds, creating fake courier services, booking apartments, or renting a household space which they either do not own or which does not exist. Consumers will continue to demand a safe and secure payment platform that is easy to use and provides protection for their personal and financial information.
Flexible payment plan
A steep rise in fuel costs has had a significant impact on the price of food, travel and ordinary household necessities. Consumers and businesses remain conservative about spending, turning to affordable and flexible options like paying in instalments. Compared to credit cards, the perks of 0% interest offered by BNPL (buy-now-pay-later) options have made them a very attractive option at checkout. Given the economic environment and consumer concerns over personal finances, we will see more of these solutions offered by merchants in the future.
In this fast-paced world where people are increasingly mobile and always on the go, customers expect to be able to shop wherever and whenever they want. To keep up with this ever-changing environment, businesses must offer a safe and seamless purchasing experience that’s synchronised across all points of access.
Mark Mwongela Ngungi, Sales Development Director, Africa