Due to consumer expectation for connectivity, the payments industry is focused on implementing digital payment solutions to reach consumers where they spend the majority of their time: their smartphones and computers. Thus, technological advancements in payments—including mobile wallets, contactless payments, and virtual assistants—have become even more prevalent. When utilizing these technologies, consumers are required to share personal information such as credit or debit card numbers in order to access the system. However, because technology is not perfect, consumers can encounter issues such as error messages or glitches, which can discourage them from using these options. To ensure that consumers understand the value of digital payment technologies, companies need to provide a seamless payments experience.
The Digital Payments Opportunity
Technology can help consumers complete tasks within seconds. As a result, they now expect instantaneous service and demand immediate resolutions, especially if an error occurs due to a company’s platform or offering. Consumers expect fast, easy, and enjoyable interactions, and the consequences of providing poor or just average service are significant.
Additionally, consumers are more loyal to brands that can provide a seamless customer experience. It’s not uncommon for a customer to leave one company for another due to poor customer service. This means that although consumers have concerns about using digital payment offerings, companies that are able to provide an efficient and secure digital payments experience have the opportunity to garner consumer loyalty.
Considering the Implications
Many companies are still recovering from major data breaches, and, because these issues are highly publicized, consumers are aware that with the use of digital payment offerings, their personal information is more vulnerable. In fact, according to our research, concern for security remains the top reason consumers would not consider paying a bill through a digital payment offering like a mobile wallet.
How Companies Can Appease Consumer Security Concerns
To ease consumer concerns, companies should ensure they are constantly communicating with consumers about the value of digital payment offerings. One important topic to address as part of these conversations is security. Companies should consider communicating with consumers about any of their up-to-date security measures and mention other verification measures they can offer, such as strong identity management tools for authentication. Companies should also consider leveraging evolving identity verification services like biometrics and artificial intelligence. Adoption or consideration of these services will let consumers know that your company is constantly considering ways to provide resources to help them learn how to protect themselves.
Although consumers lag behind in the adoption of digital payment methods, companies should take this opportunity to acclimate them to these offerings. Companies can ease consumer concerns about digital payment options through consistent communications; and, by ensuring they are offering the payment methods consumers desire, companies can lower the barriers to the adoption of those methods.
Interested in learning more? Please contact Alexis Blackstead, Vice President of Electronic Payment Products here.