Redefining retail: navigating the future of payment systems

James Stark discusses customer needs and barriers and debunks widespread myths about payment systems in the context of the evolved retail landscape.

In the current era of rapid technological progress, the retail industry is undergoing a significant transformation, driven by innovations reshaping consumer behaviour and business operations. Choosing a payment provider has evolved from a mere operational detail to a crucial strategic decision.

In 2022, cards accounted for 57% of all payments, and this share rose to 59% in 2023, according to a report by UK Finance. This surge in cashless transactions, fuelled by consumer preferences for convenience and security, highlights the importance of selecting the right payment provider. Businesses slow to adapt to this shift risk falling behind.

The impact of a retailer’s choice in payment provider goes beyond transaction processing; it’s a pivotal decision that can profoundly influence competitiveness, customer experience, and ultimately, profitability. To stay ahead, retail businesses must align with payment providers offering a comprehensive range of solutions, from traditional card payments to modern e-wallets, to meet the diverse needs of the contemporary, tech-savvy consumer.

Understanding customer needs, barriers, and strategies

In choosing a payment provider, retail businesses must prioritise three key pillars aligned with customer expectations, forming the foundation for a robust payment system:

Stability ensures seamless transaction processing, minimises disruptions, and guards against potential downtime that could harm customer experiences. It’s crucial to acknowledge that, while payment providers aim to provide stability, unforeseen outages can occur. Therefore, businesses should seek a payment provider committed to preventing such issues and, in the event of any disruptions, demonstrates a high level of reactivity to resolve them swiftly and effectively.

Resilience signifies the provider’s ability to adapt to emerging technologies while maintaining operational continuity in various circumstances, a critical differentiator amid technological advancements and potential disruptions.

Security, arguably the most crucial factor, involves protecting customer data and safeguarding a brand’s reputation and integrity. The recent surge in cyber threats targeting payment systems underscores its significance, with a 25% increase in cyberattacks on payment platforms reported in the past year alone.

By committing to these three pillars, a payment provider not only meets fundamental customer demands but also empowers businesses to navigate confidently through a changing retail landscape.

Acknowledging these perspectives can provide retailers with the insights they need to traverse the ever-changing commerce landscape.