The way we pay for goods and services is evolving quickly, but this isn’t a modern-day phenomenon – centuries ago, some cultures used to trade with salt before the invention of physical currency changed the game. And today, digital technology appears to be shaking up payment methods once again as we journey towards a much less cash-reliant society.
Whether it’s new technology or changing consumer behaviour, there are always a series of driving forces that continue to shape and reshape the way we pay.
Here are some current trends that will influence payments (and retailers) in 2020 and beyond.
The rise of Gen Z
It’s predicted that Generation Z (Gen Z) are expected to make up 40 per cent of all consumers by 2020. So, it’s probably time to get to know their increasingly influential attitudes and behaviours so you can start to accept payments their way.
Known as the first generation of digital natives, Gen Z will put some real steam behind our journey towards a cashless society. Having never known a world without the internet and smartphones, Gen Z’ers are most likely to gravitate to mobile banking apps for NFC payments, while many are now leaving their wallets at home in favour of digital services such as Apple Pay and Google Pay.
It’s all about rewards
Consumers are being enticed by all sorts of rewards programs when making their card choices. Research by CitiGroup suggests 57 per cent of existing reward card holders will switch providers to get better rewards.
In 2020 and beyond, having an EFTPOS solution that accepts multiple card types will be key to ensuring you don’t miss out on consumers who frequently switch cards to get the best return on rewards.
Payments everywhere
EFTPOS payments were a breakthrough for bricks-and-mortar retailers looking for faster and more convenient ways to transact. Some mobile retail merchants have been stuck asking for cash and potentially missing sales.
More and more businesses will begin accepting card payments and solutions like virtual terminal (VT) mean everyday devices such as a smartphones, laptops or tablets can accept payment.
Simplified payments
The different fees that can be applied to different payment types can make the cost of transactions unpredictable and surcharging complicated. Simple pricing will make it easier for the retail sector to access EFTPOS technology and navigate ‘behind the scenes’ payment complexities.
Many payment processers have hidden fees such as set up costs and annual fees. It’s not uncommon for them to apply a “one-size-fits-all” approach with fixed monthly rental fees and transaction processing fees – irrespective of turnover. At Live eftpos we have plans with no exit fees, annual fee, or set up costs while our rental fees and processing fees are based on your business’ transaction volume and other individual factors.
Getting serious about security
Cyber criminals and fraudsters are innovating alongside technology. Retailers that process, store or transmit credit card payments have to be what’s called “Payment Card Industry Data Security Standard” (PCI-DSS) compliant. PCI-DSS is a set of guidelines designed to prevent fraud and ensure secure processing and storage of customer details.
Businesses are likely to choose an EFTPOS provider that can offer peace of mind around payment security as well as comprehensive transaction reporting, which is why all Live eftpos devices are PCI-DDS compliant, AusPayNet (APN) approved and bank certified.
Reuven Barukh is CEO of Live group and Live eftpos