Tuesday, June 25, 2024

    Shops that allow mobile payments sell more, study suggests

    81% of retailers believe mobile payment technology facilitates easier payment and encourages customers to shop more frequently, with half of them saying people spend more if they can use mobile in a store.

    According to a study by VoucherCodes.co.uk and WBR Insights – which interviewed 200 retail execs – showed there was a clear consensus on the role of mobile payment technology as a positive sales driver in-store.

    Installing this technology in their shops has been a big priority for retailers, and 74% have already fully or partially implemented mobile payment methods, with the rest planning to do so in the near future.

    Other top priorities included

    • Biometric payment methods– two thirds of retailers (66%) would like their company to develop biometric payment methods, such as finger scanning or face recognition

    • Virtual Reality technology– 37% of retailers confirmed that they had invested in the technology over the last 12 months

    • Virtual Assistants– 38% of retailers have already introduced virtual assistants and 53% are planning on doing so

    • AI powered chatbots– 44% of retailers surveyed offer AI powered chatbots to help shoppers and 54% are planning to in the next five years

    Of the retailers who took part in the research, 38% felt the biggest benefit of implementing mobile payments in-store was that they facilitate greater engagement with customers by improving convenience and customer experience in real time. Thanks to the use of mobile payments, retailers are experiencing opportunities to improve various elements of the customer journey; from purchase right through to aftersales.

    Mobile payments have helped retailers to improve their internal processes. By making the process digital, staff are able to be more organised without worrying about paper receipts, on top of saving time by letting them process transactions quickly and allowing them to follow up with customers more easily thanks to digital receipts. For 26% of retailers, these factors are the biggest benefit of the technology. Retailers view digital receipts as a key improvement in after sales care for customers as they offer a less intrusive way of requesting a customer’s email address, allowing them to follow up and re-engage with the customer with relevant marketing content and emails.

    “The move towards mobile payments has arguably been the most significant single shift in customer shopping habits in the last five years,” commented Jimmy New, Director of Marketing at VoucherCodes.co.uk. “ApplePay was introduced in most major European markets in 2015/16 and the sight of people tapping their phones on terminals in stores has fast become the norm. These latest figures highlight how retailers are continuing to adapt to the growth of online and mobile spending. Technology and digital investment will be key to ensuring this growth does not come at the expense of traditional high street spend, as Artificial Intelligence and other popular innovations transform the overall shopping experience.”

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