Business Ideas

Payment Trends That Will Change The Online Retail Industry Forever


Payment Trends That Will Change The Online Retail Industry Forever

Online retail stores are promising business ventures for many entrepreneurs in the industry with great returns if executed correctly. In the United States, there are more than 181.5 million online shoppers, generating as much as $1,691,09 per online shopper, as featured by the Centre for Retail Research. Amongst the many elements of online shops, payment options are some of the most important. Thus, to ensure success, one must know the best payment options to offer their target market. In this post, we want to highlight some of the top payment trends that will change the online retail store industry forever.

Mobile payments to surpass countertop terminals

Mobile payments are set to see rapid growth, where adoption will triple this year in the US alone, according to eMarketer’s data. With the prevalence of smartphones with built-in mPayment systems, consumers are provided with a faster, efficient, and effective way to purchase items, even online. Convenience will play an important role here. Apart from the contactless and digital payments, terminals that can be conveniently taken to homes for ‘cash on delivery’ services will also be a big hit. In the information shared by Worldpay’s mobile card machine page, these terminals can be taken anywhere, able to connect to servers through mobile network coverage, and also have the capability to accept contactless payments through Apple Pay and NFC-enabled handsets. New technologies are coming to the fore that will change the digital payments including the surge in Bitcoin use.

Loyalty programs will be included in mCommerce apps
As the old and very familiar adage goes, ‘give something to get something.’ Loyalty programs have been a popular and successful marketing strategy for many physical and online retail stores. The most common way online retail stores apply loyalty programs is by seeking contact details of customers (mostly their email addresses for promotional purposes) in replace of discounts and other goodies. By integrating loyalty programs into payment apps, retailers get to maximize its full potential to target more customers. In 2016, it will be a great approach to building a lasting relationship between the consumer and the merchant.

Higher demand for payment security
Security remains a core concern with payment options. Thankfully, smartphones are now leveraging biometric technology to offer customers secured payment processes. The most prominent security feature known on smartphones today is the fingerprint sensor where users need to authenticate themselves by scanning their finger several times before making any purchases. But a new form of security feature will arrive on mobile devices this year through iris scanning technology. According to the data shared by Live Science, the eye is the most difficult to fake as well as the technology being cheaper than the other biometric scanners.

As technology advances in the future, more payment options will arise that offer convenient, fast, and reliable services to consumers. In return, online retail stores will benefit from them by having returning clients over to buying from their website or apps. What other payment trends do you expect to see this year?



Photo Credit: Daniela Hartmann (alles-schlumpf) via Compfight cc

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