New technologies have made digital payments popular, with many consumers who appreciate seamless and efficient business interactions. Gone are the days when banks who acted as both issuers and acceptors of plastic cards issued by Visa, Mastercard and American Express could charge retailers up to five per cent commission on sales made by credit and debit cards.
Market research is continuously updated to determine what customers expect from digital payment systems. Today, ‘customer experience’ has become the top priority of any business, even beating pricing and product features. With e-commerce becoming more popular, banks, fintech companies and retailers must focus on meeting customers’ high expectations.
The bottom line is that convenient and safe payment makes customers happy. Digital payment has not eliminated the use of cash in most countries. Still, it has become an essential tool for many who appreciate the ease of buying goods and services with electronic payment systems.
One of the top priorities of customers using digital payment systems is security. In affluent Western countries, digital payment solutions are common, but the potential for fraud is still high. In other countries, digital payment solutions are not available and service providers are working hard to improve the adoption of standard payments worldwide.
Scammers seem to be two steps ahead of digital payment solution providers. We have all received e-mails and SMSs from scammers trying to lure us into giving personal details about our plastic cards, only to find that our hard-earned money has been skimmed from our accounts.
Some banks have reacted to scamming threats by introducing new security layers before authorising a digital payment – layers that, unfortunately, make it more difficult for some less technologically sophisticated consumers to master the skill of making quick and safe digital payments.
Still, banks can improve the services they offer their customers who face difficulties making digital payments. Some banks’ customer service phone numbers are almost always engaged or outrightly confusing.
Unfortunately, some banks forget the moral obligation to cater to the needs of different sectors of their customer base
Why does a person travelling abroad have to wait for hours to get someone from a bank’s 24/7 customer service help desk to get a reply to an urgent inquiry about the failure of a plastic card to function in a retail store? Today, customers are so used to receiving information in seconds and they expect the same from their electronic payment service providers.
Banks must also fix some fundamental service failures by putting the proper emphasis on essential details. Why do some plastic cards lose their lamination or printed account details well before expiration?
As we evolve into mobile-first, there is a visible change in what customers want and expect from retailers. Retailers must adopt omnichannel strategies to satisfy the varying expectations of different generations of consumers. Digital payments will continue to gain popularity with younger consumers as some financial institutions and tech giants like Amazon and Apple work hard to enrich the customer experience.
Security threats will remain the most daunting challenge for electronic payment service providers. QR codes have been facilitating new ways of “touchless” digital payments. Leading payment companies like PayPal and Stripe are adopting this technology further as they improve the user experience while providing a safer way to make in-person payments at any point of sale.
Biometric authentication is another safety tool as it addresses the safety concerns of both consumers and retailers through fingerprint scans, facial recognition, iris recognition, and heartbeat analysis. While these technologies are still not widely available or used, they can potentially prevent theft and fraud, improving consumer confidence and increasing digital usage over time.
Unfortunately, some banks forget the moral obligation to cater to the needs of different sectors of their customer base. Many older adults will continue to rely on cash and, at best, use their plastic cards to withdraw money from ATMs. The closure of bank branches and the redesign of refurbished branches are depriving some older adults of the convenience of managing their cash with relative ease. Regulators must address this social discrimination, which often reflects the ageist mindset we too often choose to ignore.
Providing customers with an omnichannel payment experience is crucial. Digital payments fit nicely with this strategy with its ability to pay electronically through customers’ preferred methods. Plastic cards and digital wallets will ensure that customers remain in control of how they pay.
Even so, the physical wallet or cash payments will not disappear, and customers who prefer this method of payment must not be ignored.