Customer Experience is Driving the Future of Payments
27 February 2020
Innovative technologies impact our daily lives, from the way we communicate to the way we pay for things. Consumers are expecting smarter ways to make payments and are favouring mobile transactions over using payment cards. Gone are the days where only the end purchase mattered. Today’s consumers now seek a seamless, overall experience.
According to KPMG, customer experience is “at the heart of the payments evolution as all companies look for ways to make transacting for their products and services more seamless.”
New technology players have entered the market, hoping to fill the gaps left behind by larger institutions like traditional banks. This includes the ‘invisible’ payments of ride-hailing apps.
Case Study – Uber
Uber is a prime example of how seamless payments can create a positive customer experience. Passengers have a simple payment process without the use of any physical card or obvious interaction with a payment application. No carrying cash or having to brave the weather to find a bank machine or hail a taxi – just a user-friendly app, with the option to pre-book your travel, live updates on the location of your driver, how long the journey is expected to take and how much the journey will cost. Simple!
Realistically, no one likes actually having to pay for things. However, what we do like is the end-product (games, books, clothes, fast food, travel). Therefore, if the middle process, aka overall customer experience, can be as seamless, secure and convenient as possible, it makes sense that more customers will make the decision to purchase.
The first step to win new customers is to understand them – and the best way to retain these customers? Add value to the payment process.
The Payment Process
Payments are central to customer experience, with convenience and safety also being drivers.
Changing customer expectations are inevitable states Mike Lawlor, chief services officer at USA Technologies Inc., stating that the only constant is that the consumer will evolve:
“The new consumer is not about the transaction; it’s about the experience… They would rather text you than talk to you”
Looking ahead in 2020, the key to success will be to anticipating what comes next, adapting to changing consumer expectations and offering connected, intuitive, holistic experiences.
The Future of Payments
In the decade to 2030, the pace of transformation in the payments industry is set to accelerate.
Operators are doing more to change and update their billing communications. New technologies, such as chatbots, are being introduced to enhance the customer experience.
Payments are becoming faster, easier and more convenient. As business and customer needs evolve, now more than ever is a great time to consider adding carrier billing as a payment method to your goods or services.