Luxury Daily – Payments in the luxury business have drastically changed since the retail revolution, leading even the oldest houses to incorporate new ways of transactions. A cashless society is becoming more conceivable, as digital solutions allow consumers’ smartphones to act as their wallets and financial services providers work on greater security for credit cards. One of the best-known disruptors in payments is Amazon, with its cashless bricks-and-mortar experiment, but many others have innovated and adapted to completely new ways of paying in the quest to make a frictionless experience for shoppers.
“Current payment trends in the retail industry continue to be born out of a combination of removing friction from the customer experience while also providing enhanced overall payment security,” said Ryan Grogman, senior vice president and practice lead at BRP, retail consulting firm. “Specific efforts in support of these trends include ongoing replacement of legacy fixed payment terminals by retailers, continued mobile wallet adoption, further separation of payment card information and processing from the POS solution itself, and growth in the area of omni-tokens, a single payment token to be used across all sales channels for a given retailer.
“Additionally, for ecommerce payments, many retailers are trending towards the use of hosted checkout pages such as PayPal, Visa Checkout, Mastercard’s Masterpass, Vantiv, etc., which reduce the exposure to sensitive payment data while still providing an integrated, seamless checkout experience,” he said.
Top 5 trends in payments in luxury
- Mobile pay
Solutions that make it easier for shoppers to check out are growing in sophistication through smartphones.
- One-click checkout
Digital payment platforms are focusing on reducing the need to continually input payment information for faster checkout.
- Conversational commerce
Payment through messaging applications is becoming more popular as consumers find it more natural to communicate while paying.
- Bitcoin and cryptocurrency
Last year’s buzzword was bitcoin, as the currency increased in value and luxury retailers accepted it as a form of payment.
- China’s impact
Chinese affluents’ use of technology is making its way to the Western luxury business.
Read Full Article: State of payments in luxury – Luxury Memo special report