Looking into the crystal ball for visions of the future, one might think 2020 occluded anything from being conjured. The reality, however, is that the global behavioral shifts we saw followed trendlines the payment industry has been tracking for years.
One might call 2020 the year of acceleration. For example, while consumers shifted away from the in-person exchange of cash to minimize physical contact in public, the use of cash has been on a certain decline the world over for decades. In fact,
We also see a rapid adoption of digital technology from mobile app delivery services to new online/in-store hybrid selling, this too was only an acceleration of a steady mobile and eCommerce groundswell that was on the horizon.
2020 has been all about digital. While people stay home more amidst the COVID-19 pandemic, stores have been focused on making digital shopping as easy and convenient as possible, and this has led to options for fast and free shipping and returns as well as exclusive access to features to help build trust and loyalty.
The next step for retailers is to bring consumers the benefits and experience of being in store, from the comfort of their home. Technology including artificial intelligence (AI) and augmented reality (AR) can be used to achieve this and create more ‘physical’ experiences at home and online.
Powerful AI features like image-upload to search for similar items are already here and getting better by the day. For example, a customer can upload images of items they’re looking for and get recommendations on similar items. Meanwhile, other technology can look at a person’s browsing on the site and in their shopping cart to create targeted suggestions for products they may like.
AR applications are also expected to be on the rise over the coming year. Virtual “try-before-you-buy” experiences are now common, allowing customers to preview furniture and products in their home, while AR can also allow customers to virtually try on clothes. AR could also lead to a gamified retail social experience, with digital stores and virtual closets using an AR game, where customers are able to play, explore, and shop with friends. Amazon are already using AI with their Style by Alexa feature of the Amazon Shopping app, which suggests, compares, and rates clothing using AI.
Once nice-to-have features, AR and AI are quickly becoming essential technology for retailers. The challenge for retailers is how to redefine the final stages of the buying journey so consumers can make the payment and fulfilment without interrupting the experience.
Brick-and-mortar retail still has a place alongside the digital stores, but shops need to adapt and become "destination stores" that focus on the customer experience, offering a personalized service.
Payments have always been a pain point of the in-store shopping experience. No one really wants to pick up a product and wait in a cashier’s line to complete a purchase, so concepts including scan-an- go are expected to take off. This is where the shopper downloads an app and uses a QR code on the product to make payment. There is also the option for stores to use pay by link, where the sales associate sends a URL or shopper code to the customer’s phone to finalize the payment.
Other innovations include the Amazon Go concept which uses “just walk out” technology that automatically detects when products are taken from or returned to the shelves and keeps track of them in a virtual cart on the shopper’s phone. Payment is then made when the shop sends the receipt to the customer’s account. This technology has been around for a number of years and while it has attracted a lot of attention, roll out thus far has been limited. While the cost of the technology has generally been prohibitive, the pandemic might just provide the right use case for greater traction and 2021 may be the year we see more brands adopting this innovation.
