So here we are: December of 2017. As we head into the final weeks of the year, we thought this would be a prime time to take a look back at the trends and technology that have been crucial to the growth and development of not just our company but the payments industry as a whole these last 12 months. 2017 has been a big year for payments processing, so join us as we take a little stroll down memory lane!
Mobile, Mobile, and More Mobile
We’ve covered numerous developments in the mobile payments sphere this year on the Pineapple Blog and barely managed to scratch the surface. While mobile pay was not created in 2017, it did reach new peaks across multiple industries this year and is poised to continue its rapid expansion as we head into 2018.
From P2P growing leaps and bounds courtesy of apps like Venmo to the rise of in-app ordering and payments expanding—led by the unending popularity of Starbucks’ in-app usability—mobile payments are changing the way that we move and spend our money across all industries. Mobile payments and mobile ordering dramatically increased in 2017, with many stores and companies following Amazon’s lead to provide quick, streamlined, and entirely secure ways of ordering from the convenience of your mobile device.
Mobile has also been increasingly important for brick-and-mortar stores, as consumers continue to adopt paying with apps like Apple Pay and Samsung Pay. In the fall of this year numerous retailers began accepting Venmo payments in-store as well, taking the app beyond its initial, strictly P2P usage.
All of these mobile developments work hand-in-hand with another key trend we’ve seen this year: the importance of and demand for convenience.
Taking Convenience to New Levels
If there’s only one takeaway we have from 2017, it’s that convenience is king. The developments made in convenience-centered payments and ordering this year have been incredible and span all industries—from groceries and takeout-ordering to ride-sharing and even dog-walking. If you can think of a need or desire, there’s probably a convenience-focused app or service to accommodate it.
This convenience-focus goes beyond mobile ordering. Convenience is a crucial part of all payments transactions and consumer/seller relationships today. This can take the form of a highly effective and user-friendly checkout for your ecommerce store or offering a variety of payment options at your POS brick and mortar. Consumers are interested in spending their money in ways that are convenient, first and foremost, and they’re willing to pay more for the luxury. This Lux Research Study we’ve referenced before found that people are willing to pay up to 11% more for each added layer of convenience. This means that staying competitive in today’s market is more about the experience and ease of access for customers, even if it comes with a higher price tag. This shift has made 2017 has been an interesting year for traditional retail as well.
Brick-and-Mortar’s Evolution
With the proliferation of mobile pay and convenience-centered commerce, it would be easy to assume that 2017 was a sort of death-match for brick-and-mortar survival. However even with unending reports on the “retail apocalypse,” there’s very little evidence to back these ideas up. Brick-and-mortar has changed. A lot. This has been a year where successful businesses have caught onto ways of shifting to better serve the modern consumer—and are thriving as a result of this evolution.
Shoppers still prefer to go in-person to shop if they feel the experience and service they will receive is worth their time. This means that stores who prioritize elevated experiences through events, heightened customer service, and experience-driven shopping are thriving even in the midst of the “retail apocalypse.”
With this emphasis on customer-experience comes a need for greater convenience, speed, and enhanced usability in payments processing. An excellent retail experience can be quickly undermined by a lack of payment options or an outdated, difficult-to-use POS system. Which ties back to the growth of mobile and convenience-centered options. Stores that are succeeding in the 2017 market ensure that consumers can pay how they want, when they want, with limited difficulty.
As we approach the end of 2017, it’s safe to say this has been a banner year for the payments processing and technology industries. Check back in a few weeks to read our predictions about how these trends will carry over and continue to grow and evolve in 2018!