Importance of Online Payment in Retailing

Importance of Online Payment in Retailing

Importance of Online Payment in Retailing 800 507 Reizl Jade Ramos

The pandemic has drastically changed the tone of retailing. As a result, retailing businesses have been suffering from principal losses. The health crisis became a roadblock that leaves retailers, mainly medium and large, with only two options: to take a detour or injure themselves.

The rise of a more digitally inclined population is one of the primary movers of digital transformation in retail. In addition, a fast-evolving technology that displays a threat to traditional, physical retailing. This threat was later on called the “retail apocalypse”, a rapid hike in sales in online retailing signifies this.

The retail industry data from 2019 shows that around 9,300 physical retail branches were closed. The reason is, instead of going for online sales, owners are building an excessive number of physical branches. (Forbes). Such is just one of the numerous proofs that retailing is gradually going online.

We are way past the introduction stage to digital retailing. However, the global health crisis has created a higher demand for change to retail businesses, particularly from customers. 

The previous year brought in A tremendous change in consumer behavior. The digital transformation that the pandemic called for is on a bigger scale. There is pressure for retailers to deliver their products through other channels. At the same time, they should still offer the most efficient service they could provide.

Nearly 50% of global shoppers are using digital payments more than pre-COVID. The majority of whom plans to continue doing so even after the numbers depress. E-Wallets and contactless cards are the top payment methods benefitting from this change, as consumers use less cash and make more purchases online (Global Online Payment Methods 2020 and COVID-19’s Impact Report).

The term “dirty money” pertains to not just unlawfully obtained money but to its by-the-book definition – unhygienic. In the United Kingdom alone, the government’s policy to ban the usage of cash following the ascent of COVID19 successfully cut the use of physical cash in half. It is the retailers’ obligation to render contactless payments only, creating a cashless economy.

The before-mentioned synopsis emphasizes the pressure for the retail industry to provide more payment options. Retailers, therefore, should anticipate further developments from this point forward. Aside from its timely relevance of diminishing the need to do physical transactions, online payment has more to offer to the different stakeholders of retailing, which includes the following:

Faster transactions

Since users can do it using their mobile device, capacitating your business with online payments will make way to faster transfer in comparison to a card or cash payment. With the technological upgrades that mobile devices have nowadays, executing the transfer can be seamless and can only take a short while. 

Security

Online payment gateways have now evolved to address security issues that worry the users. They are encrypted with several layers of security, which include protecting the information of both the sender and the receiver.

Personalized customer experience

It lessens the nuisance of long lines and the inconsistency of each transaction time, wherein human factors can influence. It also allows the business to acknowledge customers’ needs in real-time, regardless of their category or level of priority.

Affects buying behavior

The unavailability of the payment method that they prefer can increase the possibility of customers retreating from purchasing a product. So, if a good number of the retail market will go for online payment if it is in place, it is a grave move not to equip your business with this ability.

As the global health crisis pushes the retailing industry to change the ecosystem, shaping your business fit for online payment is a step towards survival.

Get an edge over the rest with ANAHAW

Be ready and on time in attending to your customers’ growing, modern demands.

Privacy Preferences

When you visit our website, it may store information through your browser from specific services, usually in the form of cookies. Here you can change your Privacy preferences. It is worth noting that blocking some types of cookies may impact your experience on our website and the services we are able to offer.

Our website uses cookies, mainly from 3rd party services. If you continue to use this site we will assume that you are happy with it.