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2012 to be the Year of Multi-Channel Payments

It is the New Year and we have decided to share with you our predictions for the payments industry for the next 12 months.

This is always a tricky task, especially as the last couple of years have brought in many changes and new developments, especially around new payment channels.

We have therefore realised that it is probably almost impossible for one or even two of the payment methods to become really dominant in the market. Instead, retailers who wish to be able to serve as many consumers as possible will need to adopt a multi-channel strategy in terms of what methods to accept.

Right now most brick & mortar shops will accept cash and cards, but in the upcoming year we expect to see more shops adopting additional payment methods, including NFC (near-field communication) and possibly other types of mobile payments.

We also think that the same will happen in the e-commerce industry, where many online shops are already used to accepting not just cards, but also PayPal, bank transfers and others. Those which do not do so currently are likely to follow in order to attract more customers.

We do think that this year will bring with it the emergence of more payment solutions with it, fragmenting the market even more. And because our needs differ hugely, not all of us will want to pay for things in the same way, forcing retailers to adapt to this demand too.

In summary 2012 should be another fantastic year of development in the payments industry and we are already excited about the new ideas being put forward.

Happy New Year!

 

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Comments: (1)

A Finextra member
A Finextra member 05 January, 2012, 08:31Be the first to give this comment the thumbs up 0 likes

Due to the change in the retail shopping paradigm I believe that the selection of payment channel by the vendor is less important.  The shift towards finding the right product at the right price via the internet has led to a different type of consumer; one who is prepared to buy from a shop they have never heard of nor visited, if that shop has the product that they want available at the right price / delivery.  As a result, vendors who make the right products available in this manner can be selective on the payment channel & ensure that convenience, ease of use, security & low cost drive this choice.  I believe that the end consumer will adopt whatever payment mechanism the vendor uses in order to buy what they want when they want - consumers will no longer use the shop or their 'preferred' payment channel as factors in deciding where to spend their money.