New payment technology like Apple Pay is changing the face of convenience stores and David Jinks from technology-led international courier ParcelHero says small retailers need to get behind this or risk falling behind competitors in the run up to Christmas.
by David Jinks, ParcelHero
With the arrival of Apple Pay and the imminent launch of the game-changing Samsung Pay App, small-scale retailers like convenience stores could suffer if they don’t adopt new payment methods that are increasingly being favoured by consumers.
Internet shoppers are adopting new payment technology to speed up payments and ensure their transactions are secure. SMEs and start-ups must keep on top of changing trends to ensure they are not left behind in the build-up to Christmas – and this is trickling down into retail, with convenience stores in a strong position given the relatively low transaction level playing well with the (recently increased) £30 contactless limit.
When it comes to mobile payment methods, Apple Pay is well-established in the US and is already a hit in the UK following its July launch; Google’s Android Pay is imminent and Samsung’s new Pay App arrives in the US in September and its first European launch will be in the UK. Retailers who haven’t kept up with the latest new payment methods need to embrace new technology quickly to ensure consumers stay loyal.
Around 250,000 locations in the UK alone should be able to use Apple Pay and smart retailers will ensure they are one of this number. The new Samsung Pay system won’t even need special equipment. It doesn’t require new Near Field Communications (NFC) but will work off “old skool” magnetic strip readers, like those found on a standard bank card. The technology effectively tricks your existing magstripe terminals into registering it has been swiped.
Both major retailers and small retailers can benefit from the latest trend in shopping habits. SME’s need to be proactive about embracing new technology. ParcelHero’s latest research reveals 40% of UK consumers plan to set a strict budget this Christmas and stick to it.
The majority of UK shoppers (59%) believe a prepaid card with a set limit to spend on it would minimise the risk of overspending, and they are also considering new payment technologies to help them stick to their budgets.
In America, Apple Pay, which generates dynamic security codes for each transaction, rather than reveal bank card numbers, is extremely popular in stores like Macys and Bloomingdales, which have welcomed the system. Google Wallet – soon to morph into Android Pay – is also popular amongst security conscious buyers.
In the UK, Apps such as EE’s Cash on Tapp mobile App has been widely accepted – although so far they are often limited to transactions under £20. Additionally, a number of personal finance Apps proved very popular last Christmas with tech-minded shoppers. Apps such as Money Dashboard and Spending Tracker enabled consumers to keep an eye on all their expenses, from gifts to coffees!
Payment options are now a sales advantage. For example, ParcelHero’s customers greatly value our PayPal payment system when shipping items, because of the advantage of its added security.
