Payments are rapidly changing, and companies must stay on top of new trends in order to provide their customers with the best possible experience.
Cash has been declining since the mid 2000s. This trend was accelerated by COVID-19. Digital payments are on the rise, as consumers prefer the convenience and security of contactless transactions.
The rise of blockchain and cryptocurrency has also created a secure and decentralised payment system that offers new opportunities to businesses. To remain competitive, however, businesses must adapt to the new technologies and consumer behaviors.
Mobile payments are set to be one of the biggest trends in payments by 2023. Businesses must adapt to consumer demand and allow consumers to make payments via their smartphones. Biometric authentication, which offers convenient and secure transactions by adding layers of security like fingerprint and facial recognition, is also growing in popularity.
Real-time payment is also gaining in popularity, as it allows businesses to manage their cash flow and process transactions more efficiently. Customers will enjoy a smooth and efficient payment experience.
James Vatiliotis – Zeller’s Head Product – discusses how the new payment trends will affect businesses in 2023 and beyond. Here are some payment trends we expect to shape business in 2023.
Payment solutions for specific industries
Payment solutions that are one-size-fits all are becoming obsolete. Solutions tailored to specific industries are becoming more popular because they cater to the needs of businesses. Pay at Table is a solution for the hospitality sector. Pay at Table is a good example. It allows customers to pay their bill at the table. This increases revenue and reduces bottlenecks in the POS system.
Surcharges help offset the rising costs of economic growth
We are seeing an increase in the number of merchants who choose to pass the costs of EFTPOS processing to their customers. Surcharging may be controversial, but there are those who argue that it offers a certain level of transparency. Surcharging is a flexible way for business owners to cut costs when faced with rising operating expenses.
All costs must be recovered by the business in the final price, so it doesn’t matter if they are added to the item cost or as a surcharge. Since big businesses such as Aldi apply surcharges, Australian consumers are more familiar with this practice. This feature is commonly used by Zeller Terminal. You can use it or turn it off and on as you please, or charge only a portion of the transaction fees.
Card payments are accepted in more ways now than ever before
Contactless payments are now available on smartphones and tablets (CPoC standards). This is a major innovation. Merchants will soon have to invite customers to tap the physical or virtual card to make a payment by holding out their phone. It’s only the beginning of this new wave of innovation in payment. We can expect to see mobile kiosks and point-of sale tablets follow.
In the near future, wallets could be history
Over 25 percent of all payments made in Australia are done through mobile wallets. Medicare is already cardless and cash acceptance is declining. Some states have launched digital licenses.
This trend is evident in the product range we offer, where virtual Zeller Debit Cards account for approximately 50% of all cards issued by our merchants. Create virtual cards on the Zeller app or Zeller dashboard and add them to your digital wallet within minutes.
The NPP has proved its capabilities
The New Payments Platform launched in 2018 and has since processed more than $1 billion through 90 million accounts. The NPP provides open access infrastructure in Australia for fast payments. Fintech companies and other companies can innovate on the platform. Due to the NPP’s introduction and adoption, Australia will not see the introduction of closed network payment systems like WeChat or Alipay. It is not that these products will never be adopted in Australia. However, their value proposition must go beyond real-time money transfer – which is already possible with the NPP.
We keep an eye out for new trends in payments so that Zeller can provide the best solutions to every business. Imagine how the payments landscape will look in the future, as technology and innovation continue to accelerate.
