It’s getting easier and easier to pay for things. We’ve seen the rise of mobile payments and contactless payments but “frictionless” payments – transactions that take place “behind the scenes” within apps – are still in their early stages. This week we look at new frictionless payments innovations that are being road-tested and some of the operational challenges and consumer resistance to frictionless payments.
Half of Americans Fear Frictionless Payments
Despite the convenience of being able to buy something without pulling out your phone or wallet, consumers are still weary of frictionless payments. According to new research conducted by Paysafe, 50 percent of consumers cite fraud concern as the biggest barrier to using invisible payments. A majority also have concerns about the use of their data, security of voice-activated systems and being overcharged.
How Payments Innovation Actually Hinders Customer Experience
While payments innovation is a great thing for your customers, the lack of the right tools and implementation can create a negative experience. “New innovations like voice payments, contactless cards and wearables are intended to make electronic payments even easier and more frictionless; [but] for many payment processing organizations, the tools and methodologies required to effectively support the rapid evolution of today’s payments landscape simply do not exist.”
Changing B2B Payments Behavior
While the consumer world races toward ever-more innovative payments experiences, many in the B2B space are still playing with checks. Research from Sage, the company that has recently partnered with PayPal to introduce B2B payment services, found that small businesses can waste up to 120 days on administrative tasks and up to 15 days on chasing late payments.
Shake Shack’s Complex Evolution to Digital Only
What’s not to love about being able to order delicious burgers online and receiving them, effortlessly, minutes later? The always innovative burger purveyor Shake Shack is finding out as they launch a new cash-free, digital-only payment experience.
Is the Internet of Payments the Future of Paying?
Gartner estimates that 20 billion devices will be connected to the internet of things by 2020 – just a few years from now. For many of these devices, connected payments capabilities drive the experience: think of a connected car that can seamlessly document the time of entry and exit at a parking structure, then issue payment automatically. But just how many steps will we have to take as an industry to reach this point securely and successfully?
As you look to implement new payment experiences within your business, having the right strategic partner in place is critical in today’s digital era. Contact us today to learn about the full range of our payments innovations to help provide a seamless, secure experience for your members.
And be sure to join us at an upcoming CO-OP Roadshow in a city near you. Learn the latest consumer trends and hands-on strategies you can begin implementing immediately at your credit union. See the full schedule: http://co-opthink.org/event-types/regional/