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The digitalization of finance is changing the way customers think about shopping, and given the rapid growth of the FinTech industry, we are witnessing the ever-growing range of products and services offered by retailers online and in physical stores. Below are five ways in which FinTech developments are helping retailers create added value and improve customer experience.
Delayed payment opportunities
Before transferring the money to the retailer, online shoppers now have the opportunity to see, touch and make sure that the product they got responds to its image online. Besides, some retailers offer customers to pay in instalments if necessary.
Banks’ customers now have the chance to allow third-parties to access their accounts and data stored on them, giving retailers a way to provide new payment services and loyalty programs that reward customers and eliminate the need to fill out lengthy forms or carry around a stack of cards. With the use of open banking APIs, funds can be transferred directly to the retailer without them having to hold payment card details.
The popularity of popup shops is skyrocketing and accepting card payments using mobile devices makes it significantly easier for retailers to not be tied to a specific location and go where their customers are. The only necessary thing is the presence of an internet connection, which turns the days of cash into a distant memory. A Dutch bank ING is currently testing software that can turn a mobile phone into a POS terminal, which would eliminate the use of additional hardware.
At the moment there is no universal way to make electronic payments. For instance, mobile wallets are not as popular in the UK as they are overseas. FinTech companies have created a solution for retailers that allows them to offer preferred payment options to customers who like to use QR codes on their mobiles. WePay and AliPay give their clients the opportunity to pay via QR codes, improving the shopping experience.
With Amazon-go being the first one to do so, some stores have started to move away from human interaction. Absence of registers, checkouts or queueing is achieved through enabling the customers to scan their app on the way in, pick up the necessary items and simply walk out. Afterwards, the customer’s account is charged directly, and a digital receipt is sent.