The online marketplace has opened up endless shopping options, as well as risks, and created a global shopping mall for consumers and retailers alike. This new stage has prompted the creation of systems for online retailers that can handle the expanded scale of interaction. With this evolution, online payment systems are creating an increasing demand for shoppers to create and recreate an identity with every retailer they interact with, all susceptible to different threats of identity theft.
In leaving this breadcrumb trail of personal information, online thieves have found ways to piece together data from individual interactions, eventually usurping a person’s entire identity. This has created an arms race of longer and more complicated passwords and different online personas that can make any shopper feel schizophrenic.
Harkening back to the familiar and personal methods that consumers once used with main street store owners and vendors, payment services are taking advantage of mobile and social technologies and biometric sensors to disrupt traditional financial transactions. This allows customers to like, swipe or even smile to pay. Quickly completing secure transactions using more person ID methods is a trend from PSFK Labs‘ Future of Retail report that we’re calling Instantly Verified.
Retailers are turning to new payment services to provide a secure, yet easy to use transaction system, and systems that allow retailers to build deeper relationships with their now global audience. Eduardo Conrado the CMO of Motorola Solutions comments that “The retailer and the consumer are looking for that sense of personal link, it’s not going to be driven by the store. It’s going to be enabled through technology providing the right data to the retailer so they know who you are.” Additionaly, a Gigya survey of where consumer are most likely to us social logins found that 79% of the time consumers elect to use Facebook as an identity provider when logging into e-commerce sites. Creating readily available personal options instead of time consuming log in and transaction options can help brands expand on their emotional connections.
The lack of perferred options or complicated systems can deter customers and even lose sales. Accenture’s recent study of seamless retail found that 81% of respondents rate the flexibility to pay for products anytime and anywhere, using cash, credit, or other payment types (e.g., mobile wallet) as Important or Very Important. Additionally, a recent survey from Harris Interactive found that around two thirds of potential mobile shoppers arrive at a shopping service’s ‘checkout’ screen only to be deterred by the process of entering their payment information.
As brands and retailers look to infuse social and personal methods of payments for consumer’s benefit PSFK Labs‘ Director, Scott Lachut, reminds companies that “Regardless of the final price, no one really wants to part with their money. Design platforms or services that help make the actual transaction feel more personal and enjoyable, allowing customers to keep their focus on the excitement of their new purchase.”
As you consider implementing new payment systems into your online, mobile and in-store properties, we recommend you ponder the following questions:
- How can you leverage new technologies to remove friction from customer transactions?
- How do these new platforms sync across each of your channels?
- How can you tie these payment systems into customer loyalty programs?
- How can you personalize these transactions to ensure greater retention?
- What level of security do you need to have in place to ensure customer’s feel comfortable adopting these new payment methods?
- Can you leverage existing products or technologies that your customers are already using to facilitate these new solutions?
- How can you integrate company logos and other marketing collateral into these payment solutions to make them branded interactions that feel more special?
In the fourth edition of the Future of Retail Report, PSFK Labs brings together two interconnected themes and eleven key trends that provide a foundation for the modern shopping experience. The findings are brought to life with best-in-class examples, actionable strategies and leading questions to inspire leading retailers and brands. Join us at our San Francisco conference on Nov. 21st where talks from retail innovators will bring the key themes to life.
Contributed by: Wesley Robison