Payment innovation in 2020 is the norm for 2021
If anything has characterised the last few months, it is uncertainty. Businesses around the world saw how their corporate strategies crumbled and how analysing KPIs took a back seat. The year 2020 has meant a before and after for society and, therefore, for your business. Whatever your business model, we can say with almost total certainty that to meet your customers' needs, you will have to redefine your market strategy. Particularly when it comes to a renewed shopping experience: new and better payment methods for 2021 that increase security in the face of the still-present health crisis, as well as your financial security and that of your customers. In this post we explain how everything you thought you knew about payment methods in 2020 is now the norm, and we bring you the new financial technology trends for 2021. As experts in financial technology, at PayXpert we believe in innovation as a strong added value in the shopping experience: we want to help you surprise your customers.
Contactless payments, a trend in 2020
What was already predicted as the future of payments before the pandemic, after 2020 has become one of the most reinforced trends during this atypical year. What are contactless payments? They are all those payments where the consumer does not need to handle neither money nor any payment device, goodbye to cash. That's why it became one of the most popular payment methods during the health crisis: either by card (for amounts below 50 euros), by mobile phone (thanks to NFC technology) or the less known but equally effective SMS or Paybylink payments. In addition to these, there are QR code payments (Quick Response), improved equivalents of traditional barcodes, which allow your customers to access the payment simply using their phone’s scanner.
This is how in China (one of the leading countries in mobile payments) QR code payment is helping millions of merchants to join this trend and increase their sales. Many are considered a warning to Western markets, which will gradually see the craze for the QR as a payment method spreading to Europe.
Unified commerce: eCommerce and physical commerce become one
The distinction between physical and online sales is fading. More and more customers prefer to shop online, and pick up their orders in-store. This, like contactless payments, was already there before the pandemic, and has gained traction in the wake of the pandemic. Those retailers who have strengthened their online sales (either with an improved website and presence in social media, or by including an online payment gateway with maximum features and guarantees) will see how all their efforts have not been in vain. Online sales will become a complement to physical sales, giving rise to contextual commerce. Contextual commerce also allows retailers to get a more detailed analysis of their financial activity and customer preferences. How so?
This is where data management comes in. Thanks to fintech tools, merchants who choose to integrate fintech into their businesses will be able to access their financial activity data (activity, risk level, geolocation, and customer profile) immediately, up-to-date, and on-demand. This is the financial version of big data. Companies like PayXpert (one of the industry leaders) are devoted to analysing and processing your data to offer you graphic and synthetic versions of how your business works. Click here to learn more about one of our most innovative and successful services for our customers.
The increasingly popular subscription sales model
More and more brands are betting on this sales model where the customer accepts a recurring payment (monthly or yearly) to receive a service or product periodically. You read that right: service or product. From beauty or food boxes to wellness apps, gym vouchers, hairdressing, or English lessons. Not sure if subscription sales are for you? Here is some inspiration: US coffee shop company Panera Bread has launched an $8.99 monthly subscription whereby customers can drink as much coffee as they want at its shops. So did the Burger King chain, with a $5 monthly subscription for unlimited coffee consumption. Thinking about offering your business services by subscription, but you don't know how? Request a demo of PayXpert's recurring payments service and start using one of the sales models with the greatest potential for your business.
Investing in fintech is betting on the present and future of your business.
The financial technology sector is booming. More and more companies are deciding to invest in fintech tools to obtain more and better results. Results such as: reaching more customers thanks to our alternative payment methods, greater control of activity and risk, thanks to our business intelligence and data management services, and greater conversion thanks to the technology at the service of new market trends. All this translated into more sales to more customers and optimised finances.
Do you have an SME? At PayXpert we offer innovation to large and small businesses, without distinction and with the same type of results. Contact us for personalised guidance from our team of experts and try our demos with no obligation. We know we can do a lot for you.