With an increase in online spending and new faster, easier ways to pay, companies should think again about payment technologies and ways to meet customer payment preferences. Rob Crutchington of Encoded shares his top five predictions for payments in 2023.
Buying habits and expectations have changed, with both customers and employees wanting quick access to information and easy ways to pay for what they want, when they need it. The pandemic saw a rapid rise in the demand for secure contactless payments both online and in store. These factors have put companies under pressure to deliver seamless digital experiences, with those that get it right having a distinct competitive advantage.
Looking ahead to 2023, here are five ways that payment technology will continue to underpin business success:
1. Apple Pay and Google Pay will further increase in popularity
New, innovative ways to buy both online and in store, in particular digital wallets, have made life easier for customers to complete purchases. Stored payment credentials, fewer clicks to purchase and pre-populated delivery information make it quick and easy to complete transactions.
Originally seen as an alternative to traditional ways to pay in-person, Apple Pay and Google Pay have now gained traction as a replacement payment method for cash, credit and debit cards and are set to increase in popularity.
2. Biometric authentication – the new payment preference
Biometrics are becoming an increasingly big part of our lives, from unlocking our phones to navigating passport control. Using biometric authentication is a natural fit for payments and delivers benefits to customers. It’s faster, easy to use and with no pins or passwords to remember it is secure in its uniqueness.
Customers choosing to pay using Apple and Google Pay on their mobile devices and authenticating with biometrics, means they can pay anywhere, anytime. As new forms of biometric authentication are introduced the technology is future proofed, eventually forcing other payment methods into retirement.
3. Hybrid working offers opportunities for solutions such PayByLink
The trend for remote working will continue to present security issues for contact centres. Having the right technology in place is vital to protect customers against fraud and provide reassurance that an agent’s home network and PC is secure.
Solutions like Encoded’s PayByLink can support customer journeys and provide all important security. By sending a secure, one-time use link to a phone, by email or WhatsApp, customers can pay at their own convenience, knowing their personal and sensitive card details are safe. It brings peace of mind to those nervous about mobile payments and it helps hybrid contact centres to manage transactions quickly and easily.
4. E-commerce will be fuelled by a digital first strategy
Having a digital first strategy will remain top of most agendas and we can expect to see a boom in e-commerce as a result. According to a recent report by Public First, digital technology could grow the economy by over £413 billion by 2030 – the equivalent of around 19% of the entire UK economy.
The Government’s Digital Strategy 2022 also recognises this, asserting that the UK’s economic future is reliant on “continued and growing success in digital technology. A digital strategy can open up different channels for the customer to interact with an organisation in multiple ways. Making it easy for customers to make enquiries or pay securely, in their channel of choice, is the way forward for successful business.
5. Specialised IVR
Interactive Voice Response (IVR) phone systems will continue to play a key role in the contact centre, but in a more specialised way. As a self-service option, they can provide 24/7 support for common problems.
This may be particularly useful for paying fines and or sensitive fees, where the payment can be handled without agent contact, preventing possible agent abuse. IVR can also prioritise vulnerable callers with specific needs who may prefer to speak directly with an agent rather than chat online. Two important examples as we enter a challenging year for consumers.
Although there may be economic uncertainty ahead, businesses will need to invest in delivering a positive customer experience for success. While more payment options will be available to consumers as a result of the cost-of-living crisis and pressure on data requirements reliable, tried and tested solutions such IVR payments will always be required.
Meanwhile, secure, fast, payment solutions will be a key cornerstone for successful transactions that ensure customer loyalty and facilitate a healthy cashflow.
For more information on Encoded payment solutions and how they could support your business, visit: www.encoded.co.uk.
About the Author
Rob Crutchington is Director at Encoded.
Encoded is a leading Payment Service Provider and pioneer of new and innovative secure payment solutions for contact centres. Encoded offers a range of card payment solutions designed to help organisations comply with PCI DSS, GDPR and the newly introduced Payment Services Directive (PSD2).
Encoded’s solutions are trusted by many of the world’s leading brands including Samsung, Mercedes-Benz, BMW, LUSH and The Wine Society as well as a host of UK utility companies such as Green Star Energy (now Shell Energy) and Severn Trent Water.
Omni-channel solutions include:
- Agent Assisted Payments
- E-Commerce payments
- IVR Payments
- PayByLink – Mobile Payments
- Encoded Gateway Services
For more information visit www.encoded.co.uk.