Reducing payment friction keeps retailers competitive

Chain Store Age recently spoke with Chris Chapman, senior leader of enterprise merchant product for Vantiv. He discussed how brands should be replacing “multi-click” payment options with digital solutions that create a truly seamless customer experience — both online and in the store.

What are the biggest trends shaping retailers’ payment processing efforts?

While new trends continue to emerge, a big focus right now is omnicommerce and creating the ability to accept payments anywhere and anytime, while using any device. This includes the acceptance of digital wallets, which takes the friction out of the payment process for the consumer and provides merchants with valuable insights that can be used to deepen the relationship with their customers.

Mobile point-of-sale enables store associates to bring the checkout counter to the customer. Besides giving shoppers the ability to pay on the spot and receive digital receipts, mPOS significantly reduces the wait time to check out.

  Other key trends include the ability to pay without a card or your mobile device in the store, tying payment to a loyalty program (decoupled debit) and the ability to pay without presenting any form of payment (e.g., Amazon Go).

Additionally, the emergence of new channels and modalities is being explored by some of the most cutting edge retailers. Voice activated assistants and more seamless manifestations of e-commerce (pay by car, Amazon dash buttons) explore innovative ways to reduce friction and work within consumers’ lifestyles to connect merchants with consumers.

How have “connected customers” changed the landscape when it comes to accepting digital payments anywhere, anyhow and anytime?

The connected customer is demanding a seamless shopping experience that includes a frictionless payment process. Since consumers are constantly connected through their phones and tablets, they are increasing the amount of time they spend shopping online, ordering ahead and scheduling appointments, among other services. As a result, merchants are being forced to move away from the clunky, multi-click checkout experience and being pushed to integrate a one-click solution (e.g., Visa Checkout, MasterCard Masterpass, etc.).

Within this experience, they are demanding simplicity, speed and security when checking out. These consumers are also looking for an experience that combines loyalty, coupons and discounts all in a single step.

Waiting in line for the cashier to scan a handful of coupons is becoming less tolerable. Today, the consumer wants a one-step, fully integrated checkout experience. The key notion is for retailers to optimize the payment/checkout experience for the channel offering and maximize the opportunity and convenience new channels offer to consumers.

What challenges are retailers still struggling with as they shift to digital payments?

Retailers must avoid legacy approaches to new channels and optimize experiences for consumers. Retailers must better understand the role these tools play and the consumer behavior these channels invoke.

As channels and experiences mature, individual touch points must provide an integrated experience individually, yet still complement each other. This formula will differentiate merchants and brands amongst their competition.

How can Vantiv help retailers seamlessly accept these payments in store as well as online?

Vantiv offers streamlined integrations for top digital wallets in the market today, allowing retailers to optimize their digital experience and minimize investment in new technologies. In addition, Vantiv offers tokenization products to reduce scope and risk from these environments, which allows retailers to be more exploratory and move more quickly in this disruptive and emerging retail environment.

What changes need to happen at the retailer-level to support this transition?

Merchants must first take an introspective look at the channels and modalities they use to connect with consumers today. From here, merchants can work with Vantiv to assess their offering and identify opportunities to improve their experience and identify new opportunities to leverage their unique brand and play in the right spaces. This will maximize the connection with existing consumers and help them explore new areas to gain market share.