While it may be true that the U.S. is a leader in the modern consumer-facing technology, the way that consumers pay for an item is making a large change across the world.
Euromonitor International, a strategic marketing research firm, employee Michelle Evans looked at three different trends that will change how we make a transaction in the following year. She wrote her findings into a blog post.
According to Michelle Evans, the combination of online retailers like Amazon and the ability of 24/7 commerce via smart devices has changed commerce along with consumer expectation.
See the following trends that are affecting the expectations of consumers and the change of how we’ll make a purchase in 2018.
A Rise of New Payment Forms
It has been estimated by Euromonitor International that around 81 million smart speakers like Amazon Echo are going to be sold globally in 2017. The category is expected to grow 84% between 2017 – 2021.
Now that consumers are shifting to voice interfaces rather than type interfaces for purchases, being able to make a payment via voice is shifting the expectations of consumers. There is an expectation of a more secure and friction less checkout experience in all retail.
Evans pointed to the number of application programming interfaces (APIs) from MasterCard that provide consumers with a view of where their cards are stored across multiple digital devices. Consumers can use the single view to deactivate cards remotely or set spending parameters at device level. The number of APIs give consumers more control of their digital payment capabilities.
“Artificial intelligence (AI) is likely to transform many industries in the next decade, including payments,” Evans said as she points out that while AI has been available since the 1980s, it didn’t gain commercial popularity until the turn of the century.
Evans then used two examples of AI’s large role in commerce. These include Capital One, which has used AI to launch a chatbot; and Instacart, which memorizes grocery store layouts using machine learning.
Chinese Wallets Moving West
Chinese consumers purchased more items digitally using their mobile phones than computers in 2015. According to Euromonitor International, 66% of Chinese digital purchases were mobile based in 2016.
The mobile payment tool from the giant e-commerce company Alibaba, Alipay, has up to an estimated 520 million users. The payment tool also supports payments in 27 different currencies spreading 30 countries. Alipay has partnered with other payment providers like Verifone and Stripe in order to expand the acceptance outside China.
As Chinese consumers begin to travel more, there is an expected 225 million trips internationally in 2030, they will expect to have the convenience of using their phone to make a purchase anywhere.
Both Verifone and Alipay have announced recently that Chinese travelers can pay for cabs in North America using Alipay. What does this mean? It means that the innovations in digital payments are happening in and outside North America, along with an inflow of Chinese travelers strengthening the digital payment trend.
Article Credit(s): Jackson Lewis, CSP Daily News