Retailers rebound after two years of frantic change. In the PYMNTS eBook, “Endemic Economics: 32 Payments Execs on the ‘Next Normal’ That Never Happened,” Basat Singh, Senior Vice President and Global Head, Product Strategy and Growth – Payments and Fraud at ACI says he It’s time for them to make a platform reset and adopt scalable solutions that will enable them to meet all the challenges ahead.
Accelerated and continuous change dominated the retail landscape in 2020-21. Finding new ways to deal with changing restrictions, behaviors and trends has left many retailers frazzled and the investment pots depleted. As they bounce back, it’s clear that a platform reset is needed – what they really want are future-proof trading tools that support the evolution of the sell to retail faster and with much less effort and cost. Here are five innovations that hit the mark in 2021 and need to be reset for 2022.
Advanced Payments analytics – the new secret sauce for surviving.
During the pandemic, data has helped companies think and act faster – and with less risk – by adapting channels, changing product lines and reconnecting supply chains. In 2022, richer and deeper omnichannel payment analytics will continue to be a powerful differentiator for merchants looking to achieve their revenue and growth goals. We’ll see smarter payment analytics solutions that go beyond operational efficiency and hyper-targeted selling to facilitate better acceptance rates and optimize multi-acquirer strategies.
QR codes and wallets are in the spotlight.
Neglected for years, QR codes have re-emerged as the savior of notouch and hybrid services. Users were encouraged to scan, search, order and buy using their mobile phones.
It has also helped to accelerate the adoption and use of mobile wallets. Although a success for consumers, it has created a new integration headache for merchants struggling to cope with the hundreds of different wallets available. To ease the burden, merchants will aim for unique integration tools that will allow them to accept multiple wallets globally, with all capabilities and features accessible via in-store QR codes.
No longer an alternative, the BNPL has become a global movement.
Buy Now, Pay Later (BNPL) has grown by leaps and bounds thanks to the e-commerce boom and economic downturn. It has created huge competition with local pay-later heroes competing with big brands for financially savvy, unbanked and credit shy consumers. With merchants now reviewing multiple BNPL offerings, there is a real danger of button fatigue at checkout. Expect to see the emergence of new centralized pay later platforms offering access to multiple BNPL plans from a single user interface. In addition to making life easier for consumers, these will offer simpler integration, a single contract and better acceptance for the merchant.
Crypto is moving from hype cycle to Gen Z growth catalyst.
From currency crashes and revivals to decentralized blockchain and non-fungible tokens, crypto is reshaping attitudes towards investing, copyright and trading. Future forecasts point to rapid growth with a high proportion of Gen Z expecting to see crypto at checkouts. We believe this will make it an important payment priority for companies looking to attract younger consumers. Finding ways to process cryptocurrency payments without fees will be key to making crypto a viable payment method at checkout in the coming year.
Real-time payments will become a cornerstone for merchants.
Given the levels of disruption to sales and supply chains, maintaining cash flow is critical for merchants. Real-time payments (RTP) help reduce payment friction and bottlenecks, speed up settlement, and maintain merchant liquidity. We are planning a further migration to RTP, online and via apps, paving the way for contextualized and integrated commerce, where instant acceptance is essential.