How Covid accelerated the progress of innovative payment solutions

Software technology company Synthesis presents five ways Covid has changed our behavior and the payment solutions designed to meet the new criteria.

According to Accenture research, the behavior change brought on by Covid will remain long after the pandemic is over, with 95% of consumers making significant and lasting changes in their behavior.

Kim Furman, Managing Director of Synthesis, said companies, including retailers and banks, that will excel in 2022 will quickly move towards this change, rather than oppose it.

“Covid is a lot of horrible things, but it’s also a progress accelerator,” says Furman.

“Maybe we would have finally gotten to the same place, but it would have taken years. Compare that to the mere weeks it took us to adjust to remote working in the world,” she says.

The payment systems, Visa, Mastercard and American Express, have brought about this change with what is known as phone or phone payments where anyone can turn an Android phone into a payment acceptance device in minutes. . “

She says only a handful of vendors around the world are licensed by these plans to provide this solution. Customers simply need to tap their card on the merchant’s phone to make a purchase.

How our behavior has changed:

1. True customer focus

Furman believes Covid has amplified true customer focus. She says retailers used to come in consumers’ cars to deliver goods through click and collect services, but Covid has amplified that. Click and collect suddenly became standard from big retailers to hairdressers selling hair dyes. The retailer now revolves around the consumer, with customers now reaching out to him, whereas before it was generally the other way around.

“Payment methods like ‘tap the phone’ allow every retailer to excel with the click and collect,” says Furman.

“Whether they have hundreds of orders on Monday and only dozens on Tuesday, they don’t need to upgrade their point-of-sale devices. They just need to make sure their staff has downloaded a touchscreen app to accept payments and take their phones into cars. . “

2. Quick shopping

Many consumers have become hostile to the crowd. “When we’re in the stores, we often want to make it a quick experience,” says Furman. “Queues are not something we want to manage anymore. “

She says it comes down to customer focus. “We have always lined up in a reserved part of a store. If retailers’ phones are payment devices, then their staff can come to us in the aisles and let us pay on site, eliminating queues and wasted time. “

3. Minimum touch

Before Covid, many customers would not have thought twice before inserting their cards into a point of sale terminal. In 2020, around eight in ten people in a global Mastercard consumer survey reported using contactless. Furman thinks our behavior has changed. She says that when a device isn’t tapped to pay, it feels awkward, outdated, and unhygienic.

“This standardization of contactless or tap payments means that we expect solutions with minimal contact and quick engagement, which makes this tap technology ideal,” she says.

4. Less money

If money is no longer king, it is certainly not dead, but its use is declining. Point of sale terminals can be expensive, Furman says. Tap on phone technology removes this burden on entry and creates more opportunities for small merchants to accept card payments and consumers to have to touch less money.

5. Use cards to pay small amounts

According to Mastercard, small payments that were once dominated by cash have now crept into the card space, with 80% of payments under $ 25.

“This change in behavior creates an opportunity for small, informal businesses that exchange smaller amounts to accept card payments,” says Furman.

“With a high smartphone penetration rate, these merchants will be able to easily download an app and start accepting payments on their phones.

She says our expectations and behaviors have changed. “Innovative companies are starting to listen, paving the way for instant intelligent, truly customer-centric technology. Whatever 2022 brings, rest assured, it will bring further progress. “

About Matthew R. Dailey

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