The payments innovations that consumers really want

  • Long have the likes of cash, cards and contactless dominated the payments headlines – but which actually interest consumers?
     

    Usage of these three key ways to pay is always high, which has led many in the sector to believe they can pinpoint exactly how shoppers want to make their purchases. However, the reality is that today’s consumer is unpredictable; their willingness to experiment has opened doors to payment methods that weren’t necessarily expected to generate so much interest.
     

    So what do consumers really want to see – or not see – from payments providers?
     

    What they want from mobile
     

    One of our previous blogs asked the question that many in the industry have been speculating for a while – will mobile payments become mainstream in the UK?
     

    And, while we concluded that there is appetite for the payment method – 34% of Brits are keen to experiment with it after all – recent developments seem to suggest otherwise.
     

    In fact, it appears that payments is by no means top of the consumer wish list when it comes to smartphone usage. So instead of focusing on the launch of such services, the likes of Apple, Samsung and now Google may want to pay attention to the following statement; smartphone owners crave functionality over payments capability. Recent research from uSwitch revealed that 60% believe smartphone providers are so busy launching mobile payments that they’re ignoring the basics, such as usability and improved battery life. 
     

    How they want to pay online
     

    The growing popularity of online shopping is something that’s been talked about for a while, but how exactly are consumers paying for their web purchases? Of course, the card will always be a favourable choice here, but this is starting to change.
     

    According to the British Retail Consortium, alternative payments such as PayPal are proving more appealing to online shoppers – mainly due to the speed and ease of such transactions. The latest data revealed that such payments increased by 6.27% in 2014, a big improvement on the 0.06% that was recorded the previous year. With this in mind, it’s probably time that e-tailers revise the payment options available to their customers.
     

    Why they want new security methods
     

    Security is a hot topic in the payments industry right now, and consumers have started to take notice. In fact, many are now seeking new ways to safeguard their personal data.
     

    Research by Accenture has suggested that traditional authentication methods, such as passwords and usernames, are becoming outdated amongst shoppers. Many are now doubting their effectiveness, and in response, 77% are keen to experiment with technology to heighten security when making payments. Biometrics are big favourite here, putting technology providers in this area in a very good place going forward.