Our phones have already replaced our cameras, our iPods (or MP3s), and our computers. Now, they are beginning to replace our wallets. We are seeing more and more consumers reaching for their mobile phone at the point of sale instead of their wallet. It’s no surprise that this recent adoption of mobile payments is going to majorly change the way people shop.
The number one thing driving consumers toward mobile pay options and mobile wallets is simply the convenience of the payment. 45% of millennials said that they would be willing to connect their payment info to a wearable device in order to make fast, hassle-free payments, according to Adweek. If there is one thing that consumers today love, it’s for their shopping experience to be as quick and painless as possible. We know this because consumers, especially the millennial generation, prefers their shopping experience to be online. Seriously, what’s better than doing all your shopping from the comfort of your own living room? But, we are finding that brick and mortar stores are making a comeback.
According to TimeTrade research, 85% of consumers say they prefer to shop in physical stores. However, there is still a convenience in the shopping experience that consumers are looking for. This comes at the point of sale.
Giving customers the option of their preferred payment method is important, because it can make or break the entire shopping experience. How many times have you had your credit card out and ready to pay only to hear “sorry, cash only”? According to Business Insider, about 45% of millennials (ages 18-34) have made an NFC payment, and 35% of adults 35 or older have done so. When a retailer cannot accept the customer’s preferred payment method, the entire shopping experience becomes frustrating and inconvenient for the shopper. We must accept that we are now moving toward an age where shoppers will be standing at the point of sale with their mobile device out and ready to pay.
It’s now the responsibility of the point of sale industry to make these mobile payments possible and easy to implement for SMB retailers.
From a point of sale standpoint, we already see ISVs (Independent Software Vendors) working to make their POS applications compatible with mobile payments. Some, such as Square, have even developed their own customized payment terminals to accept any type of mobile payment along with chip-enabled credit cards. By moving toward mobile payments as the norm, we are left wondering what that means for the future of point of sale.
This could easily lead to a greater move toward digital receipts. When retailers are implementing mobile payment options, it is important for them to keep in mind the idea of the mobile wallet not just for payment, but for the digital receipt as well. While many mobile payment platforms offer digital receipt options, if retailers want to use those digital receipts as an opportunity to engage with their customers, going with an outside digital receipt provider might be the best option.
The bottom line is that cash and card payments will never fully disappear. As the adoption of mobile payments continues to grow, we will find a growing demand for more brick and mortar retailers to accept these type of payments.
Learn more about Star Cloud Services digital receipt solutions at www.starcloudservices.com.