As eCommerce extends its reach into previously untapped markets and technologies, the payments industry must adapt quickly to keep up.
Omnichannel eCommerce strategies, for instance, are lining up to replace legacy iterations. In response, the way forward for payments is one that’s personal, adaptable, and in touch with the modern consumer.
Customers fully expect products and services tailored to their specific needs, and as they need them.
The Future is Personal
Consumers expect options at checkout, whether it be through buy now pay later, mobile wallets, or biometric payments. But, this isn’t just a matter of picking and choosing options that are popular on a macroeconomic level. It’s absolutely essential to reach consumers on an individual level, with personalization as a central theme.
Enhanced personalization features should become the hallmark of every eCommerce strategy. Consumers are far more likely to purchase items that are tailored to their specific search history than they are to pick and choose items from a randomized catalog. In fact, according to a recent study, consumers expressed interest in the following personalized marketing content:
- Virtual showrooms — 45%
- Viewing products in augmented/virtual reality — 44%
- Shopping while watching a livestream — 34%
- Video consultations with personal shoppers — 29%
Banks and merchants must find ways of reaching consumers on a more personal level. The best approach is to start with their marketing efforts and finish with payment options that best suit individuals’ needs.
The Demand for Payment Diversity
So, we’ve established the demand and appetite is there from American consumers. The next step for any international merchant wanting to tap into this market is navigating the specific requirements these consumers have.
Consider the significant level of smartphone penetration in the US market, for instance. This has led to widespread embrace of smartphone-facilitated digital payments technology. 82% of Americans used some form of digital payment in 2021, including QR codes or person-to-person (P2P) payments.
Another study found that over 50% of consumers shop elsewhere if their preferred payment method was not available at checkout. Additionally, 73% of consumers polled felt safer making online purchases if they recognized the payment service provider, both domestically and internationally.
This ultimately highlights the need for greater payment diversity at checkout on a much broader scale. Consumers want options, and financial institutions must respond.
The demand for alternative payments and personalized marketing is only expected to increase year over year. Given that fact, there is no more opportune time than the present for banks to help their merchant clients expand.
With an eye on international commerce and cross-border payments, it’s time for banks and financial institutions to extend collaborative efforts through alternative markets. The right technology partnerships can increase strategic economic bleed through multi-level market streams. They can also assist each agency by facilitating innovations that optimize the customer experience through relevant payment trends.
Consumers want promotions and marketing tailored to their specific needs and the means to pay for these items in a way that works best with their budget and preferences.
Banks can’t afford to keep funneling the public through stolid, unyielding legacy channels. Now, they have an opportunity to lead innovation and appease consumer demand.