The future of commerce lies in instant and invisible payments, triggered by the needs and demands of today’s modern consumers: millennials and Gen Z. By 2020, the spending power of both consumer groups is projected to reach $1.4 trillion and $44 billion respectively, meaning that the future payments experience will be largely driven by their behaviour.
These consumers expect digital shopping experiences that are as natural as possible – unconscious, even. Furthermore, in their quest for the best products and services, consumers want a seamless, integrated shopping experience, regardless of touchpoint. For them, the barriers between channels will blur so heavily as to become essentially nonexistent, proving that the payments transformation demands a clear need for omnichannel services.
Consumer behavior, regulatory developments such as PSD2 and modern infrastructure are converging to enhance innovation and growth in the payments ecosystem. As a result, mobile wallets such as Apple Pay, Google Pay and WeChat Pay are growing in popularity. The day will soon come where you’ll no longer need to pull out a debit or credit card—in fact, we estimate that 56% of all e-commerce transactions will be paid through mobile wallets by 2023.
The technologies used to deliver frictionless payment experiences include tokenization, sensor fusion, cameras, machine learning and data analytics. “Tokenization is a must have for all e-commerce businesses as well as any offline merchant that wants to offer a seamless checkout experience,” explains Ankur Sharma, Payvision’s Omnichannel Product Manager. “Not only does it safeguard sensitive cardholder data, we’ve also seen evidence in the ecosystem that tokenization can effortlessly raise conversion by up to 6%.”
Invisible payments are already happening through recurring billing, queueless checkouts and cashierless checkout. By 2023, invisible payment technologies will power $28 billion in transactions.
Payvision has released a new ebook exploring the future of commerce payments. The research looks into how the next generation of payments is reinventing the shopping experience, giving merchants clear insight into key strategic retail trends.
The ebook analyses all factors, practical use cases and technologies fuelling the upcoming commerce payments transformation. Next to these, we’ve included advice for businesses to thrive in the competitive commerce arena.
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