Thoughts on Retail Payments
How much more do you expect digital wallets to proliferate the retail payments market? Are there any key jurisdictions where you expect to see a digital wallet boom?
Digital wallet adoption is more rapid in developing regions across Asia and Africa compared to mature markets, largely due to three key factors. First, the existing banking infrastructure in these regions is often poor and outdated. Second, there's a high risk of fraud in cash transactions. Third, digital wallets in these areas are typically integrated with widely used consumer products. For instance, in China, WeChat Pay and Alipay evolved from messaging and e-commerce platforms, respectively, and now have over a billion users each. Similarly, in Southeast Asia, GrabPay and GoPay originated from ride-sharing apps and have become widely used.
In contrast, "Western" financial markets are more developed, reducing the incentive to adopt new payment methods. Digital wallets in these markets will need to be built off high-utility consumer applications, like last-mile logistics or e-commerce (e.g., ShopPay).
BNPL is one of the leading options at retailers today. While the service is booming, how do you see it stabilizing over the coming months and years?
Going forward, we're going to see BNPL options merging with your usual credit card and store payment methods. Banks and credit card companies are getting into the BNPL game, adding those pay-later perks into their regular offerings. It's all about giving customers more ways to pay over time, without making things complicated. Pretty soon, the lines between BNPL and the credit cards we've always used might get a bit fuzzy. The goal will be to make the whole shopping and paying process smoother and more all-in-one.
As retailers onboard new technology into their payment stacks, what new rewards and loyalty features at checkout can we expect to see? What are the coolest loyalty features on the market today?
We’re admittedly a bit biased here, but we feel like the reinvention of the traditional “donate at checkout” to transform into an impact-led rewards wallet would be a fantastic solution across merchants. The consumer can earn impact points for purchasing, aggregated into a single wallet, given to great environmentally and socially impactful nonprofit projects, and earn rewards redeemable across merchants. Give a little back with each and every purchase, and earn rewards for creating a positive impact!
Can we see more scan-free checkouts hit the market? What efficiencies can these drive for shoppers?
Given some of the news that’s come out around Amazon’s Just Walk Out offerings, it’s clear that there is some level of product saturation here. If this offering is still reliant on human review over CCTVs, then I believe there will be limited incentives for retailers to adopt this. Stores can better allocate their resources to improving their e-commerce and delivery experiences for shoppers.
How can mobile POS systems continue to make payments easier for both consumers and retail staff?
Looking ahead to 2024 and beyond, consumers will demand more from digital payment methods. This includes features to address the cost-of-living crisis, such as lending and the widespread aggregation of merchants accepting these payment methods. We’d also like to see POS systems connect to more digital wallet providers and focus on a better rewards and loyalty experience.
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