The payments trend that’s got us all excited

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The payment process isn’t usually the sexiest part of the shopping experience.

Too many things can go wrong: the customer’s card may have expired, or their account is incorrectly flagged for fraud, or sometimes the payment is simply declined for unknown reasons.

Those are all incredibly frustrating scenarios for merchants, who’ve done everything they can to make a sale – only to lose it at the final, most crucial step.

We totally get it. And that’s why we’ve made it our mission to take the complexity and hassle out of payments.

Part of taking up that mantle also means that we share our insights with merchants. After all, as a payments service provider, we’ve got our finger on the pulse as to how the consumer experience is evolving.

So when we got to thinking about what to tackle for our next major content piece, we asked: what are the most important challenges we foresee coming for merchants, and how can we help?

Tackling “the next big thing” in commerce

The decision came for us: invisible payments.

First of all: what is “invisible payments?” It’s the concept of having payments take place in the background, without conscious or active effort from the customer.

Here’s why we think it’s so important to talk about.

Plain and simple: consumers want it.

Most consumers today are millennials or Gen Z’ers. Combined, they make up over 60% of the global population.

As digital natives, these shoppers have an “anytime, anywhere” mentality, which means that they expect a seamless, consistent shopping experience as they move from one channel to another.

Whether they’re ordering lightbulbs via voice assistants, buying jeans on their smartphone, or picking up bagels from a grocery store, they expect to sail through these purchases with ease.

They may not be using words like “invisible payments” per se, but as a universal rule of thumb, they’ll always opt for the most convenient way to pay. And what could be more convenient than not having to do so physically?

Big Tech is already bringing this future closer

The quadfecta of Google, Apple, Facebook and Amazon—also known as GAFA—already has a huge influence on the future of payments, with each player having launched various services that will make it easy for people to pay anywhere.

These tech titans excel at delivering simple, high-quality digital interactions. They have a deep understanding of how to design e-commerce journeys to drive conversion and retain customers. So it’s no surprise that they know how to deliver a payments experience that delights their customers.

What’s more, they also have the trust and loyalty of today’s consumers to witness fast adoption and scalability of their payment products. In fact, we estimate that by 2023, 56% of all e-commerce transactions will be made through mobile wallets such as Apple Pay or Google Pay.

Even regulators are encouraging it

Regulatory initiatives such as Open Banking and PSD2 are pushing for payment services which are faster, safer and more frictionless than ever. 

Not only will consumers have more control over their own data and wider access to payment solutions, they’ll also have higher protection from fraud and reduced liability for unauthorized payments.

As the payments experience continues to evolve, all parties in the ecosystem will play a role in making sure it’s sustainable, secure, and therefore likely to pick up momentum instead of remaining just another trend.

The future of payments is invisible

Invisible payments are now on our doorstep. While it’s going to take time to gain traction, we’re confident that day will come.

That’s why we’ve produced an ebook on invisible payments: to give you the 101 on the factors driving this evolution, use cases to inspire you, and our recommendations for harnessing invisible payments in your strategy.

Ready to get your guide to invisible payments? Download it for free here.
The author

Le Raine is Payvision’s resident content marketer and writer. Her superpower: talking to payment geeks and translating their passionate technobabble into impactful takeaways – whether in an essay, a video, or a meme. She’s constantly on the lookout for fresh insights in the e-commerce, payment and tech worlds.

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