The Positives and Negatives of Digital Payments
Thinking about integrating mobile payments into your payment options? While only 16% of consumers have utilized digital payments, many more would be willing to use it as their primary payment method if more merchants offered it, and if they had a better understanding of the benefits.
There are several positive reasons for both consumers and merchants to utilize digital payments. For consumers, faster checkout and simply having an array of payment options is desirable. Depending upon the merchants they shop with, consumers may also benefit from mobile payments through value-added services such as rewards points, coupons, and additional security features. Many consumers are unaware of these additional benefits, however, which is why adoption of digital payment is somewhat slow.
For merchants, the benefits of this payment method are directly related to that of the consumer. Merchants utilizing digital payments are not only able to get their customers through the checkout line faster, but they have huge opportunity to interact with their customers in a new way through the features listed above. Digital payments can allow merchants to make intelligent use of data by pairing it with internal data and reaching that customer with relevant offers. If utilized well, digital payments can impact your business far beyond speeding up time spent at the register.
Of course, there have been some challenges in the adoption of this payment method. Many consumers are still concerned about the security of mobile payments, even though the elimination of using physical cards removes the threat of cards being stolen and information being encrypted. For merchants, the main question is whether or not it’s worth the cost and effort to implement this new payment method. If you are considering incorporating digital payments into your organization, it may be worth the cost and hassle as long as you are willing to inform your customers on the benefits, and to utilize it as a new way to reach them.
To learn more, check out the full study conducted by JPMorgan Chase Forrester here.
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