Study Dubs Omnichannel No. 1 Payments Trend (April 7, 2014)
Payments are in the midst of some fundamental changes that will continually reshape the industry landscape for years to come, according to a new white paper from Vantiv Inc., outlining the top 10 payment trends to watch in 2014. Devised in conjunction with Mercator Advisory Group, the report is the third in an annual series begun in 2012, and was based on a survey of consumer opinions combined with perspectives from executive leaders of merchants, financial institutions and ISOs.
The report named omnichannel commerce the No. 1 trend for 2014. The drive toward omnichannel is being driven largely by the penetration of smartphones and tablets, especially among younger and higher-earning consumers. Eighty-six percent of consumers ages 18 to 34 own a smart device, along with 74 percent of those earning $100,000 or more annually, the report said. Consumers are using those devices to bolster the in-store shopping experience; 48 percent of shoppers have used mobile to price-compare or research product information while in-store, while 44 percent have accessed offers or discounts via devices while shopping.
As omnichannel commerce grows, consumers are demanding a seamless shopping experience across channels—and they’re taking note when they don’t get one. “Now that consumers notice inconsistencies in delivery across mobile, online and physical channels, these ‘omni’ concepts become more than buzz words,” Ken Paterson, vice president, research operations, Mercator, tells Paybefore. “As customers access mobile channels and multiple devices, their expectations for consistent user experience with retailers and FIs are growing. Stakeholders in the payments industry have some real challenges to meet those expectations.”
Among the other trends identified in the report are: the increasing opportunity for customer engagement presented by loyalty and rewards programs; small and midsize merchants adopting new payments technologies such as m-POS; and the spread of prepaid products to a broader consumer base.