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From Smart Pay to Buy Now Pay Later

The payment experience is constantly evolving.

In other words, the way we pay today is different from yesterday and not the same as tomorrow.

It does not matter which generation we belong to (boomer, genX, millennium or genZ): each of us can appeal to our memory and find confirmation: from small checks to phone tokens, from lira to euros, from ATM to SMS, from smartphone to wallet .

Looking to the future (which is also part of the present), cryptocurrencies and cryptocurrencies will change the world of e-commerce and digital payments.

How do we pay and how do we pay?

The number emanates fromGlobal Consumer Report: Current and future shopping trendsThe platform sponsored global survey of B2C and B2B brands BigCommerce About the new buying habits of consumers: the agency good profit I heard 4222 between the United States (1698), the United Kingdom (685), Italy (687), France (627), and Australia (527).

As a result, one in two online stores is online at least once a week: fashion and apparel (80%), electronics (56%) and entertainment (55%).

Regarding the payment methods used for online purchases, 5% of consumers said they use them Cryptocurrencies, mostly in the US and Italy.

The “Buy Now, Pay Later” payment option is used, when available, (16%). In Italy at the moment, 5% of consumers use it.

The main reason for choosing BNPL is to help consumers Be within your budget: In Italy, 32% more likely to complete a purchase if BNPL were an option.

When it comes to shopping in the metaverse, nearly half (46%) of consumers are willing to purchase virtual and physical goods.

A case that changes even those who hold it

But before we get to the metaverse, let’s stop at cashierthis to some extent, the physical and the virtual, which has always been the interface that regulates the relationship between the customer and the seller.

What is a cash register today?

First of all, it is a tool that is the best ally of digital transformation. For those who manage it, in fact, it is a direct bridge with management systems that enable services such as inventory, personnel, order management and, above all, financial management.

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Automated payment acceptance terminals and with Touch functions Smart POS types integrate digital payments with supply chain functionality.

Here then the smart cash terminal becomes, for those who manage it and for those who pay, an interconnected element, able to act as a link between supply and demand.

The smart point of sale that replaces the cash register, making the point of sale an extension of digital payment systems, becomes a symbol of transformation and passage towards the cashless world.

Especially since it is the seller himself who uses it extensively.

Today, it is the merchants themselves who do not have the cash. This is told by the SumUp Small Business Observatory, which (in March of this year) analyzed 100,000 anonymous transactions made by Italian merchants using the SumUp business account to determine their spending and consumption methods: ATM withdrawals By 36% compared to the previous year, Online shoppingEspecially for consulting (47%), fitness (40.8%) and education (40.3%), the preferred payment method is contactEspecially for coffee, restaurant and delivery managers who use it in 60% of cases.

Among them, there are more and more people under the age of 30 who use smart POS services young merchants which are placed between GenZ and Milennial and, therefore, are very similar, and could not be otherwise, to customers of their generation, who have Buying and Payment Habits Innovative.

Buy now, pay later in a time of inflation

The generation that made a payment method like Buy now and pay later is a crucial choice, because it allows you to pay Purchases in installmentsin general three, to no avail.

The aspect is important, especially in times of inflation over 8%: can BNPL be understood as a tool to “protect” an individual’s purchasing power?

It is controversial and subject to debate, as the paytech companies that provide Bnpl services are not doing the job of the lenders. Moreover, their role Purchasing FacilitatorsUm is clear.

However, the fact remains that deferred payment is the era of online purchase for 76% of consumers, according to a survey by PayPal, with 68% of GenZ and Millennials abandoning the shopping cart if the option is not available.

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According to the observatory Soisy, which analyzed 960 e-commerce sites, Lombardy, with 5.49 million euros, and Lazio, with 4.42 million euros, are the regions with the largest volume of purchases paid in installments, followed by Campania 2, 91, and Sicily. 2.73 million euros, with Emilia-Romagna, Piedmont and Veneto with 2 million euros, Tuscany and Puglia with 1.8 million euros, and Calabria with 1.4 million euros.

An analysis conducted by Crif in June of this year shows that growth rates in demand for BNPL credit in 2021 are well above the target consumer credit, with an average annual increase trend of 134% and with a quarterly peak of 194%.

The characteristics and profile of digital consumers who request this type of financing in Italy show that over 20% have more active lines of credit than BNPL, and surprisingly, the demand for Boomers.

Therefore, the BNPL is Intergenerational glue digital payments?

Close the digital payment experiences

Taking the words of the head of Netcomm, Roberto Liciamarking Focusing on digital payments, payment is an essential component of the shopping experience and an important marketing leverage in the entire commerce sector, not just e-commerce (remember that in Italy, the percentage E-commerce sales of total retail 11% According to the data of the B2C e-commerce observatory Netcomm – Management School of Politecnico di Milano).

The moment of payment, for Liscia, can be asatisfying experience to the consumer, but only if the intersection of two basic needs is guaranteed: safety and the liquidity from the payment experience.

These are definitely needs between generations. On these grounds, the situation can change: if we talk about the payment court, it no longer matters who buys and pays, but how and when they buy and pay.

Today’s consumers expect to pay expertise Simple, safe and called frictionless.

Technically, it becomes more than that Sensitive stage of the buying process: If not taken care of, it may lead the consumer not to close the deal.

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But if proper attention is paid to liquidity From experience and process safety, it becomes the moment of purchase satisfying experiencewhich even generates positive emotions, able to motivate the user to repurchase from the same brand or from the same e-commerce platform.

Thus, the winner is a simple, reliable and fast payment process, which often coincides with the possibility of choosing a digital wallet among the payment methods.

Security and liquidity, waiting for the metaverse

according to Juniper Research In the next five years, the volume of digital payments in the world will increase to reach its share 20 thousand billion dollarsThe.

Already at the end of this year it is estimated that the volume could reach $12.3 trillion.

Payments NFC (Those made from smartphones, so to speak) will be the main driver of this increase, with +176% in 2022-2027.

In order to transition to these payments smoothly, the report highlights the need to adapt smartphones especially from the point of view safetyi.e. enabling biometric recognition to authenticate payments, in order to avoid fraud risks.

The report also highlights the fact that companies that provide financial technology services can mimic super app like the chinese WeChat: Applications where you can do many things, such as pay for everything you buy, but also see the content posted by your contacts and chat.

So this is what Safety and fluidity Digital payment is configured as the core characteristics of the payment experience, which eventually becomes an experience of everyday life, translating every aspect of physical life into digital.

Which is why it is conceivable to go back to the beginning of the story, if metaverse It will be, it means that we should be able to do everything we do in real life, even spending our money. Which gives us an idea of ​​the motives behind everyone who creates metaverses.

Maggie Benson

"Bacon trailblazer. Certified coffee maven. Zombie lover. Tv specialist. Freelance communicator."

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