The payment news articles curated this week confirm the importance of flexibility in payment offerings and that ISVs should be prioritizing a seamless payment experience.
The Secret to Long-Term Subscription Loyalty
The payment experience for subscription services has the power to influence customer satisfaction. According to PYMNTS.com, “Payment frictions and failures can be catastrophic for subscription service providers. Two-thirds of U.S. payments decision-makers reported that 11 percent or more of their payment failures resulted in the loss of subscribers over the past year.”
Failed payments not only frustrate customers; they also hurt profitability. It’s helpful to use a payment solution with an automated card updating service to ensure recurring payments happen successfully. With this service, credit card expiration dates update automatically on a nightly basis, removing the need for merchants to manually contact cardholders while preventing payment processing failures from expired credit cards.
Consumers Continue to Crave Convenient Payment Options
Chain Store Age featured a survey conducted by Podium highlighting the importance of offering multiple payment methods at the point of sale to please consumers.
According to the study, “being offered convenient payment options is the second most important factor consumers consider when choosing a local business.” Additionally, “Digital payment options, including website payments, mobile wallets… and text links, were the top payment choice for 20% of consumers.”
One of the benefits of integrated payments is the ability for ISVs to offer functionality for various payment methods, such as credit card payments, QR code payments, and contactless payments. Learn more.
Tap-To-Pay Transit Payment On The Rise
Digital Transactions reports Visa is helping transit agencies worldwide implement contactless fare payments on buses without the need to “purchase or load a separate payment transit card or handle cash.”
Seeing tap-to-pay on buses is exciting, as transit is considered a primary catalyst for contactless adoption. Contactless payments make it easier for everyone to pay fares. It can also give more flexibility to those who will make fewer trips to the office, allowing them to pay single-trip fares quickly without purchasing a monthly pass.
Predicting The Future of Mobile Payments
Where will mobile payments take the world next? A thought leadership piece in Global Banking & Finance Review predicts three future trends based on advancements in API technology:
- More utility and city service payments will be paid via mobile
- Cross-border trade will be cheaper and more efficient
- Payments via social media will enhance online shopping experiences
As API technology and payment infrastructure continue to evolve, the payments ecosystem remains an exciting space to keep an eye on. Learn more about the payment APIs and SDKs that ISVs can use today to grow their business.
Debit Does It For Gen Z
Payment preferences continue to differ between generations. PYMNTS’ spotlight on Gen Z explained that there is “notable enthusiasm for debit cards,” and like millennials, they have high expectations for frictionless mobile experiences.
Additionally, the pandemic has fueled a shift to debit card usage as Gen Z remains wary of credit card debt. According to Webster Bank, 28% of consumers have used their debit cards more since the pandemic began.
Partnering with a trusted payment processor allows ISVs to be flexible in their payment offerings, helping their merchants appeal to a wide variety of consumers regardless of their payment preferences.
We hope you find this roundup helpful in staying on top of payment trends! Stay informed on the payment industry by subscribing to our email newsletter or following us on social media.