As the months of sheltering in place continue in various forms, many of us have wondered about how to maintain—or even build on—our most important connections. Surprisingly, I have seen that physical distancing may in fact help us to become better connected, providing room for reflection, focus and ultimately, more meaningful connections. I’ve been heartened to see how our industry as a whole leaned into new opportunities and challenges in 2020, helping to forge new and different connections through the power of payments.
Being physically distanced from others has compelled many of us to realize and reflect on the importance of community. The lack of in-person interaction and playing witness to the devastating impact of the pandemic has inspired us to seek ways to support and strengthen our communities during this time—and payments have been an important mechanism. Digital and prepaid payments have been used to speed relief pay to those who need it most. According to our research, 38% of respondents have used gift cards or eGifts for some kind of charitable action since the COVID crisis began.
Read More: Global Fintech Series Interview with Thomas (Tom) Aronica, Founder and CEO of Biller Genie
Apart from charitable activations, a digital payments revolution is underway the likes of which we thought was years or decades away—as consumers increasingly shop online, order ahead or opt for contactless payment options. Looking ahead, the payments industry has an opportunity to build on the evolution seen in the last year. Payments can be the conduit to deepen connections between brands and consumers to solve their problems, meet their demands and create better, more meaningful shopping and payment experiences that will persist long after the pandemic is over.
For instance, it won’t be enough for mobile wallets to merely store debit or credit card payment credentials. From cash to rewards and gift cards, mobile wallets must transition from simple, to unlocked, truly useable resources across technology and across retailers and buying experiences. Retailers and consumers alike are looking for more ways to unleash the value of their mobile wallets to spend across a variety of situations, and redeem points, rewards and gift cards seamlessly across the omnichannel shopping experience. Mobile payments at point of sale are expected to grow by nearly 20% over the next four years. Additionally, six in 10 shoppers surveyed said they would like to pay for things in store by using points they’ve earned in their loyalty programs using their smartphones.
We must also bridge the gap between cash and digital payments for underbanked, unbanked and cash-preferring customers. The demand for a cash transition solution is strong; 230 million private-sector workers did not have bank accounts and received wage payments in cash in 2019. According to a recent report, 69% of survey respondents from eight countries say that the ability to use cash is one of the most important factors to consider when paying for things. And many digital wallet users (49%) would welcome the ability to add cash to it at a physical retail store. Another study reported that if shoppers were able to add funds to a digital wallet in store, 68% of those surveyed would shop in the store more often than they normally would and 57% said they would spend more money at the store than they normally would.
Though we’re not physically together, we’re all in this together. Gone may be the casual meeting around the water cooler or at our favorite payments conference. Sequestered to our homes, we have been forced to more deeply consider who we need to interact with, in many cases leading to deeper relationships with our colleagues. Similarly, the payments industry is at that breaking point of clarity. The payment solutions that will rise to the top in 2021 and beyond will be those that meaningfully connect consumers and brands.
Building more meaningful connections has become my personal and professional goal in 2021, and one that we’re spreading across our business. I challenge our entire industry to maintain this focus as we look ahead.
Sales and Marketing Tips by The Experts Are Waiting for you on The SalesStar Podcast, Hear More:
