There are so many exciting changes happening in the retail payments technology, as the industry continues to build momentum toward an environment that becomes more digital in nature thanks to consumer and business preferences for online and mobile payment methods.
It is retail payments tech that has helped slowly change payment preferences, and it will be this same and new technology that will continue to evolve retail payments.
Here are some of the best trends in retail payments technology that started in 2016 and continue into 2017:
Having a more fully integrated retail system helps address many of today’s consumer expectations, including more product options, the ability to provide more offers and promotions on the fly, pay and pick-up in store convenience and constant availability of all products. By combining payment processes with supply chain and inventory management processes, it is becoming much easier for retailers to comply.
For example, Poynt’s terminals offer apps to help merchants evolve their business so they can offer order ahead/pick-up in-store or introduce loyalty programs that keep customers for the long-term. In this way, retail payment technology is creating this integrated eco-system that is required to create this online and offline shopping experience for consumers.
Mobile Payment Options: Digital Wallets, Wearable Devices, and Mobile Ordering and Pick-up
The increasing amount of available payment technology for mobile payment methods is helping retailers comply with consumer demand to shop and buy straight from their phones whether they are in a store or looking online for items. Thanks to Near Field Communication (NFC), in-store mobile payments are increasingly easier and more enjoyable for both the retailer and customer as long as there is an enabled NFC chip on both the POS and mobile devices being used, including Poynt hardware that enables mobile payments.
The retail payment technology is now expanding to include options for wearable devices to meet this new demand. From table point-of-sale (POS) technology to acceptance of emerging digital wallet payment methods, there are more options that address the mobile and wearable device environment, enhancing the customer shopping experience.
Additionally, mobile ordering and same-day pickup is now increasingly used and available thanks to retail payment technology.
Restaurants, including quick-serve outlets, and retailers are able to offer a mobile ordering service that enables payment to be included in the ordering process with pickup at the restaurant and store at a designated time.
More consumers are catching on and loving this in-demand option that caters to their whims. Retailers like Starbucks and Taco Bell have reported increases in their sales volume and mobile app downloads thanks to this retail technology, which uses digital wallet features and other tools that also provide additional integration with other areas of the retail operation.
Other technology propelling mobile payments forward includes Bluetooth technology and digital assistants. Consumers will become more adept at using Bluetooth as a way to handle their mobile payment while the increased reliance on digital assistants on smartphones will increase their interaction with users.
This greater connection will help to provide more information about online shopping habits and purchase behaviors, which can help with incentives and loyalty programs connected to retail payments.
Cloud-Based POS Systems
The trend toward cloud-based software has been around for a while, but it is only now becoming a noticeable retail payments technology trend. The new POS systems increase the number of payment methods that a retailer can accept plus they provide some of the aforementioned integration.
All the data collected from these POS systems is now available in the cloud, which means a retailer can access the information from anywhere with just an Internet connection.
Even better is the fact that data is updated frequently and does not cost the retailer extra money to access. The cloud-based technology also adds further security by not having the data stored on any hard drive.
Biometrics for Increased Payment Security
The best trend of all is greater payment security with a range of technology being used to make this happen. Besides two-step authentication and tokenization, biometrics is becoming increasingly used to handle payment security by providing the factors that determine if a person is really who they say they are in order to confirm that it is a legitimate and authorized transaction.
Biometrics are becoming an effective way to combat credit card fraud and stop data breaches since criminals have yet to find a way around the powerful science of biometrics that relies on information that is unique to each person individually and cannot be duplicated.
More to Come
With the growing interest in cryptocurrency and the multiple applications associated with blockchain, machine learning and artificial intelligence, and other advancing technologies, more great trends in retail payment technology await us in the near future.
This is an exciting time to be part of the retail and payment industries because we are witnessing what could be akin to the changes that completely transformed other business segments during the Industrial Revolution and the Digital Age that has forever altered how we shop, communicate, socialize and conduct business.
About the Author:
John Rampton is an entrepreneur, investor, and startup enthusiast. He is the founder of the online invoicing company Due. John is best-known as an entrepreneur and connector. He was recently named #2 on Top 50 Online Influencers in the World by Entrepreneur Magazine and a Blogging Expert by Time. He currently advises several companies in the San Francisco Bay area.