Even though 2020 was a black sheep year for most industries, in many ways the Covid-19 crisis has crystallised our understanding of consumer behaviour. Naturally, mobile and contactless payments saw a massive surge in popularity as hygiene became a safeguarding necessity. At the same time, people are more interested than ever in alternative payment methods like buy now, pay later and MOTO and QR code payments.
If you want to dig deeper into all things MOTO and discover the key benefits of accepting such payments for your business and customers, watch our video below.
This page is a collection of all the ways to pay, virtual currencies and eCommerce trends that mattered most throughout 2020 and 2021.
Shopping – New ways to pay and to manage your money
Buy now, pay later
Buy now, pay later (BNPL) grew over 200% in the US in 2020. For consumers, BNPL providers like Klarna offer an easy, flexible and often interest-free solution to pay in instalments for low-value items. For businesses, they increase revenue and average basket values and improve conversion rates and customer loyalty.
MOTO payments
Mail order/telephone order (MOTO) payments – which allow businesses to accept debit and credit card payments over the phone or by mail. With updates to Virtual Terminals there’s a host of industries, like takeaways, online retailers, travel agencies and more, that can benefit from the ease and simplicity of MOTO.
QR code payments
QR codes have been popular in China for a long time and, in recent years and more so since the onset of the pandemic, they’re catching on the UK. In fact, by 2025 it’s predicted that as many as 30% of all mobile users will pay with QR codes. Any business with a shopfront needs to seriously consider adding this payment method to their offering and further bridge the gap between in-store and digital payments.
Contactless payments
Contactless payments reached a record high in 2020 with more than 83% of the population now paying touch-free. With new legislations from the FCA has come higher limits to allow customers to make even higher value purchases through contactless, in response to the heightened hygiene awareness that’s accompanied the pandemic.
Mobile payments
64% of consumers value mobile wallets most highly when paying in-store – it is increasingly becoming an imperative for business to offer their customers the ability to make payments through the likes of Apple Pay and Google Pay™. But mobile payments encompass more than digital wallets. QR code payments, SMS payments, mobile bank transfers and more are part of this compelling story.
Digital and virtual currencies
Peer-to-peer payments increase
Peer-to-peer (P2P) payments occur in situations we’re all familiar with – splitting a restaurant bill between friends, buying second hand items and even sending your grandchildren holiday spending money – the list of use cases goes on. But the enduring question is: what are the most popular P2P payment methods of the future?
Moving closer to a cashless society
With consumers – especially the younger generations – demanding the ability to pay without cash, the race to a cashless society is on. The UK, Sweden and Canada are in the lead, and the rest of the world is playing catch-up. Read this article to dive into this exciting global phenomenon and the megatrends, both socio-behavioural and technological, that are driving it.
The impact of cryptocurrencies
In the world of payments, there is perhaps no area more interesting than cryptocurrencies. Both Bitcoin and its closest rival, Ethereum, have set new all-time high prices during the pandemic. Global financial institutions that would previously have written crypto off as a passing fad are beginning to cast aside their reticence and embrace a future where cryptocurrencies will play a larger role on the global financial stage. Read this thoughtful piece by Matthew Woodley for the full story.
What’s #trending in eCommerce
The livestream shopping boom
The lines between digital and real-life have been blurring for decades, but with the global pandemic forcing consumers indoors, that shift has been drastically accelerated. Livestream shopping, which is huge in China, is perhaps the greatest example. Bringing together social media influencers with brands, “host sellers” sit behind a camera and speak to a live audience about a particular product. Explore the new shopping channel, its size and scope as it exists currently and what it is set to become.
Online marketplaces are a staple
Amazon. Taobao. Etsy. Airbnb. What do these household names have in common? They’re all online marketplaces and they account for 62% of global online sales. To customers, they offer a world of products and brands in a single digital space. For businesses, marketplaces represent incredible opportunities of potential customer numbers, fast launch times and established programmes to help you market, sell and fulfil with half the hassle of launching on your own.
Click and collect for businesses
Click and collect, which was already popular in the UK long before the pandemic, reached record highs in 2020. When you add click and collect to your business offering, you give your customers the flexibility to collect goods at their own convenience and room to spend more (because they save on delivery fees).
Voice commerce
Voice-triggered assistants are an innovation in AI, allowing consumers to make purchases through voice commands on portable devices. The transaction value of voice commerce is projected to hit $19.4 billion by 2023, marking a great opportunity for merchants looking to boost customer loyalty and maximise profitability.
Prepare for the future of payments
With so many new payment options, eCommerce channels and technological innovations, it’s becoming more crucial than ever for retailers to partner with a payment services provider (PSP) that can support them in adapting and remaining relevant in the face of changing client demands and harsh winds of competition.
emerchantpay is here to help. As a PSP, we work businesses of all sizes to help them accept payments online, in-store or remotely. Our global payments solution is available through a simple integration, offering a wealth of features, including global acquiring, alternative payment methods, fraud and risk management and performance optimisation.
If you’re interested in adding any of the payment options listed in this article to your offering, or simply want advice for your specific business, get in touch with our payments experts today.
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