Former Myer CEO Bernie Brookes’ recent presentation at the Indue Leadership Forum gave the payments industry an insider’s perspective on current disruptive trends. What does retail disruption mean for the future of payments? How can providers enhance their offerings to meet shoppers’ expectations?
Shoppers want everything now
Consumers, more savvy than ever before, have increasing expectations on service. They want everything now and they want to be more in control of their purchasing decisions. They can access information instantaneously and use this to research before buying.
Once a decision is made, shoppers will want to complete their transaction instantaneously and with ease. Financial institutions must invest in ensuring their processes are fast and seamless. The New Payments Platform will provide the speed, immediacy and convenience that the modern consumer is seeking and ensure Australian payment providers can exceed service expectations.
Consumers are looking for a personalised and entertaining shopping experience
Brookes pointed to luxury online retailer Gilt as an example of the exclusive and premium shopping experience global consumers are looking for. At the front end, entertainment and personalisation engage consumers and encourage them to continue the purchasing cycle. Back-of-house, seamless payment integration completes the customer’s journey.
Just as much innovation is required by payment providers as there is by retailers to provide an end-to-end, personalised and entertaining experience. From mobile to tablet and web, the possibilities for innovation continue to grow. Technology now gives us the ability to think creatively and tailor fully customised solutions so that the experience is unique.
Mistrust in online shopping
Brookes believes that Australian shoppers still have a long way to go in trusting online transactions. We still love shopping centres, with Chadstone and Westfield Bondi Junction two of the top twenty shopping malls in the world.
Globally, however, fifty per cent of sales are multi-channel and traditional retail growth is slowing. Online retail growth must compensate for this.
For payment providers, investing in security and card fraud management systems is crucial. Not only will this improve consumer trust of online transactions, but also reduce costs associated with fraud. By implementing card fraud management, Indue’s clients have saved approximately $1 billion in ‘at risk’ funds.
By looking at the future of retail, we can predict where the payments industry should be heading and how to harness disruption to remain competitive.