Although consumers have returned to shopping on their own, they are not ready to give up the convenience of digital payments. Instead of returning to the original payment method, consumers are sticking to the habits they adopted during this pandemic. They prefer digital payments over traditional cash and credit card options and it’s a trend you can expect to see continue.
The checkout process is now one of the most important parts of the customer journey, but what does this mean for businesses? What trends can brands expect to see over the next 12 months?
- A combination of online and offline payment methods
Even as consumers return to physical stores, they have changed the way they pay for products and services.
Instead of going back to traditional credit cards that require paper receipts, there is now a preference for frictionless payment methods. These methods reduce steps in the purchase process and include mobile and digital wallets, one-click payments, subscription renewals, and in-app payments.
Customers can pre-order on the app and pick up the front part. This option of browsing online and buying things that you can pick up and wear within an hour, allows consumers to pay however they want to enjoy the immediate physical experience.
Connecting online and offline payment systems, giving customers the opportunity to shop where they want, when they want, will continue to expand in 2023. Businesses processed $3.9 trillion in undisputed payments in 2020, a figure expected to grow to $8 trillion by 2024.
- Creators can get in-app tips from subscribers
The rise of digital payments has made it easier for creators to get paid online. Instead of relying on product sales, affiliate marketing, and brand endorsements, social media creators will be able to get paid directly from the apps their followers choose. TikTok has a recommendation feature for accounts with over 100,000 followers. As a Twitch Affiliate, you can receive donations on your stream through Twitch Bits, a form of virtual currency.
These types of features allow consumers to continue the food experience while producers, producers and small businesses can generate income. Influencers can get advice without losing their money from others.
- Digital wallets are the norm
Apple Pay, Google Pay, Shop Pay and digital wallet options are common along with other traditional checkout payment options. If you don’t allow customers to use a digital wallet, you’re limiting the way they can pay you.
Paying by phone has become a convenient way for consumers to make purchases in an instant, whether they are in a store or online. More than a billion consumers worldwide will use their digital wallets to shop by 2023. Digital wallet customers will exceed 1.6 billion at the point of sale (POS) in 2023. This will represent 30% of all sales costs.
- Payment tools are the new life tools
Consumers now rely on their phones for everything, from ordering an Uber to booking dinner to checking their blood sugar. Therefore, expect to see a wave of “super apps” emerging. These applications act as gateways to various virtual products and services.
BlackBerry co-founder Mike Lazaridis was the first to use the term, describing it as “an integrated set of applications that people will use every day because they provide a seamless, integrated, and convenient experience.” well.”
The popular Chinese app WeChat is a good example. It started as a simple messaging app, but now offers a collection of services including taxi rides, wallets, hotel reservations, games, and even health advice.
In 2023, expect to see many of these amazing apps emerge with the current payment feature, the Pay Later (BNPL) program, which allows consumers to paying for their purchases in monthly installments, and payment methods.
- Don’t stop buy now, pay later (BNPL)
BNPL (buy now, pay later) has exploded in the last two years. Financial uncertainty during this pandemic has led to the proliferation of applications that allow consumers to spread payments in one installment each month – and it has been a win for brands and consumers. Brands are able to convert more customers by promising low fees, and consumers can invest in expensive products without breaking the bank.
BNPL payments are expected to represent approximately 24% of e-commerce transactions by 2026 (from 9% in 2021), and 65% of customers have added BNPL as a payment method by 2022. It is clear to see how popular this payment system is due to the large number of BNPL companies that have appeared in the last two years – apps like Affirm, Klarna and Afterpay. All companies competing in digital payments are pioneered by PayPal.
For example, Charlotte Tilbury offers customers the option of paying in installments through Klarna. The company explains how the system works with step-by-step instructions to increase customer understanding and confidence.
- QR codes are common
QR codes seem to have disappeared a few years before the epidemic, only to be used with a vengeance as brands and places tried to limit contamination from cash, tickets and receipts.
Currently, QR codes are ubiquitous in many settings, including restaurants, where customers can scan the code to view the menu, order, and pay for their food without waiting for a server, and in physical stores, where consumers can open funds. . and additional product lines by simply scanning the QR code. Decathlon’s “Scan & Go” app allows shoppers to skip long lines by scanning QR codes in-store and have products delivered directly to their door.
QR code payment users are expected to exceed 2.2 billion by 2025, or 29% of mobile phone users worldwide.
These digital payment methods are here to stay
Many people trust digital payments and find them an easy way to make purchases. Consumers who have never thought of using a digital device to pay for lunch are paying with smartphones without a second thought. In 2023, consumers will expect companies to give them options when they pay. But expect to see more payment methods as consumers demand flexibility and businesses adapt to meet those needs.