The payments market has greatly evolved in the last few years. The banking sector’s historical leaders, who were the driving force behind the transition to card-based electronic payments, are now partnering with Fintechs. The reasons behind this major change: enhanced complexity of the technology and processing systems, payment terminals management, and the advent of online payments, smartphones and contactless payments. Payment services from players such as Apple, Google or Samsung, are a clear depiction of these changes.
A new transition to non-card payments is taking place
These are strategic challenges for merchants as they need to be able to accept all payment methods and all types of customer paths. Merchants, with both a physical and digital presence, have to provide their customers with a seamless and unified user experience regardless of the interaction channel. Physical PoS (Point-of-Sales) are limited in terms of the number of payment methods a terminal can accept. On the other hand, online merchants can choose to accept up to 30 different payment methods from all over the world. Digital is therefore playing a crucial role in the rise of new payment methods, the transformation of transactions and the renewal of the customer experience. In this context, new industry players, on the payment acquisition side of the industry, have appeared in order to help merchants reconcile their different payment flows, among others.
New regulations back the rise of new payment methods
These changes, backed by new regulations such as the PSD2, have impacted merchants both technically and financially. On one hand, merchants have gained better transaction costs but, on the other hand, they have to update their processes in order to be compliant as well as adapt their customer journeys.
Different needs for merchants with different sizes
Looking to the future, merchants’ needs vary depending on their size. For example, Tier 1 retailers’ biggest upcoming challenge is the standardization of their payment solutions across all their geographies into one central global system. Tier 2 retailers will need cross-channel solutions to build their business in physical stores as well as digitally, giving them the ability to serve their customers anywhere at any time, a need shared also by Tier 1 retailers. On the other end of the spectrum, Tier 3 merchants will need to make the move from standard to vertical solutions that will be adapted to their market segments.
The most efficient way for merchants to meet today’s requirements and tomorrow’s trends is to partner up with the right company that can navigate the complexity associated with new technologies and with new regulations while delivering a seamless, easy and secured end-user experience, a company that brings revenue-creating innovation combined with a forward-looking vision.
Worldline is this technological partner
- our presence at all the different stages of the payment value chain,
- our expertise,
- our capability to deliver customized solutions that fit the different needs of our clients, regardless of their size and market segment.