Benefits of adopting Digital Payments in Retail Business
The internet high street is busier than ever with businesses ranging from multi-national corporates to sole traders jostling for customer’s fleeting attention. Retail sector is currently experiencing a pivotal shift towards a futuristic marketplace with the increasing usage of digital payments in India. Consistency and seamlessness across all platforms are the key element to achieving success in the marketplace that is constantly expanding its horizons. Whether it be a brick & mortar store or website, mobile application or third-party seller, consistency of service is essential.
Customer journey touchpoints with a business are increasing in relation to the number of channels of interaction that exists between the customer and business. Consumer’s Payment Journey is a crucial step of the overall customer journey that influences several key outcomes of a business. How to identify the right touchpoints in customer’s payment journey for retail businesses and enable payments to be more flexible and seamless to drive sales? Let us begin with a basic understanding of why Retail stores have the increasing need to adopt frictionless payment
Why do Retail businesses need frictionless Payment?
Retail industry is constantly evolving with each innovation, the recent payment digitisation has steered it in a whole new direction. According to Statista, value of retail market in India is expected to surpass USD (US Dollar) 1.7 trillion in 2026. The high-value segment that acts as a litmus test to the country’s economy is currently experiencing a pivotal change with the introduction of digital payments.
In the past, in-store payment generally included Point-of-Sale (POS) device to accept credit/debit card payments. With digitization, increase in the number of payment methods available to the customers have created a demand for frictionless payment methods that offers flexibility of diverse payment methods for in-store purchases whether it be a Kirana store or a supermarket chain.
Payment Flexibility between Retail & E-Commerce
The juxtaposition of e-commerce and retail sectors competing in the same space requires an increased fluidity between both. This process aids in more than just driving sales for the business from different customer touch points, it contributes to enhancing customer experience. For example: If your customer touchpoints are the brick & mortar outlet, social media, and website. The customer journey between all these channels needs to be consistent and seamless.
Payment Gateway is an essential tool that is capable of seamlessly connecting all the different channels. From POS device in the brick & mortar outlet to social media chatbot, the Payment Gateway seamlessly connects all the channels to give the consumer a frictionless payment experience. Digital Payment aids in capitalizing the duality of Retail & E-Commerce sectors while offering a unified payment experience for the customer across all channels and their touchpoints.
Payment Methods offering Frictionless Payment
1. Mobile Wallets- No cash. No plastic. Mobile wallets are one of the most convenient ways to make a quick and easy payment. ‘Scan & Pay’ offers a frictionless payment solution for customers while merchants are instantly notified of the payment status.
2. Contactless Cards- Physical stores now offer a plethora of payment modes- PoS devices are one of the main tools to accept card payments. ‘Tap & Pay’ gained popularity during social-distancing phase of the pandemic enabling safe & no-contact payment.
3. Mobile Apps- The clear distinction between retail & e-commerce does not exist as most businesses choose to exist in the phygital world. ‘Click & Pay’ in Mobile apps are handy for quick and frictionless payment experience for the customer that supports several different payment modes.
4. Buy Online, Pick Up in Store- Frictionless Payments enable seamless transition between the physical stores and its digital counterparts with buy online & pick up in-store feature that offers improved convenience to customers
Advantages of implementing Frictionless Payments
Frictionless Payments offer a seamless payment experience for your customer. But how does it benefit your Retail Business? The chief benefits of implementing frictionless payments are listed as follows:
1. Speedy Checkout- Frictionless Payments offer reduced number of steps for payment processing. This ensures quick and easy checkout leading to higher sale conversion rate directly benefitting the business.
2. Decreased Cart Abandonment Rate-According to Baymard Institute, 17% of customers choose to abandon their cart if the checkout process is too complicated. Implementing frictionless payments reduces the cart abandonment rate for your business and capitalizes on the impulse purchases.
3. Better Customer Experience- Frictionless payments aid in providing enhanced payment experience for the customer resulting in improved customer retention and reduces churn rate for the business.
4. Higher Payment Security- Frictionless payments offer enhanced security with new and emerging technology such as tokenization to secure payment processing for digital transactions.
Pay10 offers an ultra-efficient Payment Gateway with easy and hassle-free integration for all existing platforms of Retail & E-Commerce business. We provide world-class security features that supports a whole array of payment modes including credit/debit cards, internet banking, UPI (Unified Payments Interface), wallet, etc. and equipped with a fully analytical dashboard for the merchant’s convenience. We also provide Payment Links, Billing service, Reseller services, Payout services, and more.