The way we pay for goods and services is changing fast, but this isn’t a modern-day phenomenon. In ancient times people used to trade with such things as salt, before we moved to coins followed by paper money and then bank cheques. Fast forward to 2019, and digital technology is shaking up payment methods once again.
Whether it’s new technology like the virtual terminal, or changing consumer behaviour, there are always a series of driving forces that continue to shape and reshape the way we pay. Here are some current trends that could influence payments in 2020 and beyond.
The rise of Gen Z
Did you know Generation Z are expected to make up 40% of all consumers in the US by 2020? It’s likely to be a similar story here in Australia. So, it’s probably time to get to know their increasingly influential attitudes and behaviours so you can start to accept payments their way.
Known as the first generation of digital natives, Gen Z will put some real steam behind our journey towards a cashless society. Having never known a world without the internet and smartphones, Gen Zers are most likely to gravitate to mobile banking apps for NFC payments, while many are now leaving their wallets at home in favour of digital wallet services such as Apple Pay and Google Pay.
It’s all about rewards
Consumers are being enticed by all sorts of rewards programs when making their card choices. One survey suggests 57% of existing reward card holders will switch providers to get better rewards.
In 2020 and beyond, having an EFTPOS solution that accepts multiple card types will be key to ensuring you don’t miss out on consumers who frequently switch cards to get the best return on rewards.
Payments everywhere
EFTPOS payments were a breakthrough for bricks-and-mortar retailers looking for faster and more convenient ways to transact. However until recently, mobile merchants such as tradespeople and other service providers have been stuck requesting bank transfers or asking for cash.
More and more businesses will begin accepting card payments and solutions like our virtual terminal mean everyday devices such as a smartphones, laptops or tablets can accept payment.
Simplified payments
The different fees that can be applied to different payment types can make the cost of transactions unpredictable and surcharging complicated. Simple pricing will make it easier for the growing small businesses community to access EFTPOS technology and navigate ‘behind the scenes’ payment complexities.
Getting serious about security and insights
Cyber criminals and fraudsters are innovating alongside technology while more companies are leveraging payment insights to help shape a more competitive business strategy. Businesses are likely to choose an EFTPOS provider that can offer added value such as peace of mind around payment security as well as comprehensive transaction reporting.
