As we’re moving into a post pandemic world, this begs the question: are these changes here to stay? And how can businesses prepare for the new normal? Here are three payment trends to be aware of and get prepared for in 2022.
We’re waving goodbye to PIN numbers and cash
The traditional payments mix of cash and card, was changing even before the pandemic, with the Nordics leading the way in becoming cashless. But there’s no doubt that the pandemic has fuelled an acceleration in the digitalisation of payment methods. Additionally, there has been a rapid increase in the adoption of payment methods which are not only contactless but also convenient.
With rapid change comes the challenge of keeping up, so in order to ensure that your business is geared for the new wave of payment methods it’s important to consider the following three things:
- Replace older POS machines, ensuring that your new machines are able to accept not only contactless cards but various forms of digital payments too.
- Make sure that you’re able to accept mobile payments with the market-specific solutions such as MobilePay and Vipps. And don’t forget to ensure that this is an option both in store and online.
- Perhaps it’s time to update your online payments portal to reflect the consumer demand for digital and e-payments solutions?
Buy now, pay later
Buy now, pay later (BNPL) solutions are rapidly increasing in popularity, particularly among younger consumers. These solutions allow consumers to purchase something and pay for it at a later date or in instalments.
While this payment method used to be primarily used for high ticket items, it’s rapidly gaining traction in retail, and is expected to account for 26% of all global payments by 2026 (according to Juniper Research). So now could be the time to start considering where BNPL (as well as other flexible and easy payment solutions) may fit into your business model and cater to your customers’ needs, now and in the future.
Digital payments, prompt digital ID improvements
Increases in ecommerce and digital payments methods, have unfortunately also induced an increased risk of cybercrime. This, in turn, means an increased need for more robust digital identity infrastructures to ensure that shoppers feel secure and protected when purchasing online.
We currently encounter digital ID systems in our everyday lives, for example when interacting with banks, financial institutions and online retailers. The systems are continually under improvement, and 2022 is set to be a year of large scale changes in the area of digital ID, such as:
- In Denmark, we’ll see the replacement of NemID with MitID
- The World Economic Forum has launched a shared platform which aims to being together existing and new Digital ID solutions, that are inclusive, trustworthy and secure.
- There is a strong industry interest in introducing a set of standards Digital ID solutions must live up to, in order to ensure consistency and improve the security across the board.
It is important to remain aware of changes in these infrastructures and to ensure that you’re up to date on changes and requirements in the markets you operate in so you can provide the most secure purchase flow for your customers. Digital ID is certainly one to watch in 2022.
It is important to remain aware of changes in these infrastructures and to ensure that you’re up to date on changes and requirements in the markets you operate in so you can provide the most secure purchase flow for your customers.
It appears that the changes to the payments landscape driven by the COVID-19 pandemic, are here to stay, with trends continuing and ecommerce still growing steadily.
To ensure your business is best prepared for the new payments mix and these growing trends, it’s worth staying up to date on digital payments methods both in store and online; keeping an eye on flexible, easy to use solutions; and ensuring that your ecommerce platform is a secure place for customers to shop.