The retail industry has experienced technological advancements the past few years that have helped increased customer service and enhance payment security. From cloud-based POS systems to the introduction of mobile wallets, these new technologies have allowed retailers to streamline their business and take advantage of new marketing strategies. The emergence of EMV technology has also added security for card-present transactions, reducing potential instances of counterfeit fraud.
1. By the end of 2016, there will be a 210 percent increase of the total amount of mobile payment transactions.
Experts predict that mobile payments will only continue to grow in the near future, as mobile wallets and apps continue to gain popularity with both consumers and retailers. Leading mobile wallets, such as Apple Pay®, Android Pay, and Samsung Pay have attracted many younger consumers who are looking to use alternative forms of payments over traditional forms of payment.
“Younger consumers generally have fewer apprehensions when it comes to experimenting with and eventually adopting new technologies,” said eMarketer analyst, Brian Yeager. “That’s certainly true for mobile payments, where security concerns are more pronounced among older consumers. Ultimately, mobile wallets will need to have a strong track record of security to attract more users across all demographics long-term.”
2. 50 percent of consumers want the ability to buy online and pick up their product in-stores.
More and more consumers are looking to online shopping to buy more conveniently. As shopping becomes more digital, retailers need to expand beyond being just a brick-and-mortar and incorporate having a website where consumers can browse and buy products online. Having the option for consumers to pick up in-stores or ship directly to their home is very important.
3. Retailers will have a 90 percent EMV adoption rate by 2017
Although EMV adoption with retailers was low the first few months after introduction, experts predict that almost 90 percent of all U.S. retailers will have EMV-capable solutions by the end of 2017. Already accepted in other countries, the U.S. was one of the last in line to upgrade their payment technology. EMV and chip cards will continue to bring enhanced security features that will protect both retailers and consumers from possible card-present fraud.
“We’re seeing EMV is having a positive impact on counterfeit fraud,’’ said Stephanie Ericksen, vice president of risk products at Visa. “Merchants who implement chip, their counterfeit fraud is going down, while those still finalizing plans, their counterfeit fraud is going up.’’
4. 75 percent of companies in the U.S. that have a loyalty program receive profits on investment.
Loyalty programs are a great way for retailers to receive repeated business from their consumers and add additional revenue. With deals going digital, retailers need to rely on new forms of technology for loyalty programs. A cloud-based POS system offers integrated customer loyalty programs that allow retailers to process, manage, and track their loyalty programs.
“These programs are designed to get loyal customers into these stores more often, and they often work,” said Matt Schulz, senior industry analyst at credit card comparison and information site CreditCards.com. “Plus, if people are loyal customers of a store, they’ll be willing to pay for these types of programs—as long as they feel like they’re getting value. That’s the whole key: Offering them something of value, something that is unique to your store and that targets the customers’ wants or needs.”
It’s safe to say the retail industry has made great strides with the help of technology and improved payment security features. As more and more solutions become available, retailers should figure out what technology strategies would benefit their overall business strategy.