Payments have evolved into a primary factor in the customer experience. In fact, 85% of global executives surveyed by J.P. Morgan and Forbes say that payments are crucial to providing the best possible customer experience. In the end, businesses and consumers want a seamless, easily managed checkout process. But as the latest technologies are changing the ways that people buy, payments infrastructure is being put to a new test. External market challenges are sparking increased friction in customer experiences and ramping up competition for loyalty.
Moreover, businesses are currently bracing for a potential economic downturn. Reports indicate that the U.S. has a nearly 44% chance of heading into a recession in the next year, citing “higher borrowing costs, a blistering pace of inflation and supply-chain problems” among the biggest factors.
This means brands will have to work harder and more efficiently to capture the dollars of a consumer base that may very well tighten their wallets soon. Unlocking strategic value and addressing evolving payment pain points can be key differentiators in the uncertainty ahead.
Let’s take a look at some best practices businesses can use to lock in the trust and loyalty of new and existing customers by revolutionizing payments.
1. Create Seamless Payment Processes
Merchants and the customers buying their products and services are happy when payments are easy. It’s hard work to get people to put items into a shopping cart and ultimately decide to buy. A faulty checkout process, confusing page design or hidden extra fees will put more stress in their minds about spending money. A seamless experience is key.
The route to that seamless experience is ensuring that payment options become an easy and intuitive extension of buying products or services instead of being a speed bump at the end of the purchase. Whether it’s auto-populating customer information, one-click checkout or digital wallet functionality, these options should flow naturally to take the hassle out of the process.
Additionally, personal data and real-time payments should be secure on a fully compliant platform amid growing cyber threats and increasingly fraudulent activity. By not offering industry standard protection, businesses risk the potential loss of customer trust — regardless of whether they were directly affected or not.
2. Personalize the Payment Experience
Consumers have already come to expect personalization in their shopping experiences, and businesses need to be able to provide payment methods and localization that match specific preferences. Otherwise, customers won’t trust in that brand and return to make purchases again and again.
Embracing local currency payments, language functionality and knowing what checkout methods consumers prefer can also help brands anticipate the likelihood that individuals will ultimately make a purchase if offered certain payment options. This should also come with the support that provides solution design and implementation to make it easy for businesses to add, update, and integrate into new payment methods quickly and easily.
Additionally, businesses need to offer the ability to process payments where the customer is located. Merchants and the banks that back their payment platforms should be mindful of digitalizing international payments processes to enable cross-border transactions. Local matching gives consumers the option to be billed and pay in their local currency by simplifying a complex process for the sender and receiver.
3. Stay Ahead of the Next Payment Tech Breakthroughs
Banks and the merchants they support should embrace new technology to ensure payment methods remain as cutting-edge and convenient as possible. Thinking ahead makes sure customers trust in the brand from their first purchase and remain loyal when making a fifth or sixth purchase.
New digital transformation efforts like embedded payments, buy now, pay later (BNPL) and more are quickly shaping how customers interact and engage with merchants to keep interest high over time.
For example, embedded payment functionality directly within a software platform will continue to evolve. These well-executed third-party solutions can allow vendors, like software platforms, to control the full experience. As businesses look to consolidate resources, they will need solutions that offer more robust capabilities to stay competitive and enhance the customer experience. Payment trends and innovations like BNPL will simplify and personalize the shopping experience based on consumer needs in the moment.
Amidst inflation, international conflicts, and emerging cybersecurity threats, the unique needs of individual buyers remain in flux, which requires a greater need to rethink payments. Businesses and consumers expect beneficial digital payment options. By minimizing friction at the end of the buying process and beyond, these practices can promote enhanced engagement and retention that will drive recession-proof efficiencies for banks and payments providers alike.
