Stay informed and prepare to meet consumers’ and merchants’ changing demands.
Nothing is static in the world of payments. People who picked up new pandemic payment habits show little interest in leaving those new behaviors behind. Now, it’s up to forward-thinking ISO Agents to pick through a potentially $12.55 trillion market and identify the payment trends that will give their merchants an edge in 2023 and beyond.
Here are some of the key themes likely to shape the sector and unlock new experiences in the year ahead.
Digital wallet demand proves the future is frictionless.
Digital payments are far outpacing cash transactions. Furthermore, analysts estimate that half the U.S. population will routinely use their smartphones to pay for things in person by 2025. Though Apple, Google, and Samsung launched their digital wallets years ago, it took a pandemic to show some shoppers the value of virtualizing the physical cards they usually carry. Now there’s no going back. Consumers are using their digital wallets to vote for a friction-free future that gives them the freedom to pay in the convenient, tap-and-go ways they want.
Super apps emerge.
If today is the app age, then tomorrow is more than likely to usher in the super app era. The most famous example might be China’s uber-popular WeChat app, used by 1.2 billion people for everything that many disparate apps used to do.
So why are super apps trending? One reason is “app fatigue.” People are tired of downloading a new app for every little task, brand, or need that tickles their fancy. They’d rather do more with less and dive into one do-it-all bit of software that can meet the lion’s share of their needs — and that’s true when it comes to payments as well. Merchants who want to stay relevant will need to know how they can get their services into the latest, greatest super apps, winning mindshare, and more.
Watch buy now, pay later.
Research says nearly two-thirds of merchants are looking at rolling out buy now, pay later (BNPL) services this year. College-age kids and twentysomethings are particularly interested in using BNPL to manage their budgets while avoiding credit card debt. Watch this trend as consumers look for ways to avoid credit card interest on larger purchases.
Seal up security.
Now that so many transactions take place in cyberspace, payment security on all channels must be a priority. One Mastercard study found that 75% of the consumers surveyed were targeted by cybercriminals, and 20% said their data was vulnerable due to a data breach. Merchants are at risk of losing loyalty if they don’t plug any security holes in their processes that might jeopardize their customers’ sensitive information.
Your merchants can rest assured that the technology they use is Payment Card Industry (PCI)-certified. Additionally, if they comply with the PCI Data Security Standard, they’re taking the right steps to protect payment data — and their businesses. However, they may need more. You can steer clients toward smart solutions that lessen the chance of their customers becoming victims of fraud and help them train their employees on payment security best practices.
As your merchants’ most trusted advisor, it’s up to you to be one step ahead of what’s around the bend. Stay up to speed on the most influential payment trends so you can guide your clients toward the mission-critical investments that set them up for success with today’s consumers.
You’ll not only help merchants grow their businesses, but you’ll establish yourself as a valuable partner, too.
To learn more about payment trends and how to provide solutions merchants need, contact North American Bancard.
