The spread of mobile commerce and the improvement of streamlined payment processes, largely driven by companies like Airbnb and Uber has revived the payments sector.
And this new focus on payments has both startups and big tech companies, even Apple, looking for a cut and ways to streamline the process.
Braintree general manager of mobile Aunkur Arya is predicting everyone will starting looking at a process that’s often ignored.
- Payments will be a seamless process which consumers barely notice
“Payments will fade into the background. It will be really about predicting what consumers want or using signals like location or things like that to just be smarter about what time of day goods or services are delivered,” he said.
Arya said his projection is being driven by the user demand that payments should be a one-click, seamless process.
“It’s really becoming the norm and it’s becoming a consumer expectation,” he said, adding clunky checkouts can in some cases deliver drop off rates of more than 70%.
- Remembering your credit card will be something you’ll have to do less often
Tokenisation of credit card information, which is a big part of the seamless Uber experience, will also filter through to small business, Arya said.
“I think you’re going to see tokenisation become much more widespread beyond just mobile commerce,” he said.
“I think we’re moving to a place where the username and password will become less relevant over time.
“There will be different ways to authenticate that aren’t so based on username and password.”
- Businesses will need to be flexible with currency
The other trend businesses need to prepare for is gearing up to accept all types of payments.
With the launch of Apple Pay and Google Wallet, as well as the rise of Bitcoin, payments have moved a long way since just cash or card.
“There may be multiple wallets that have relevancy,” Arya said.
- Mobile commerce will become predictive and based on user behaviour
With digital payments and data, the way merchants present goods and services to users will change, Arya said. Smart commerce will mean being much more contextually relevant.
“I think that over a number of years you’ll see additional signals and data that can make the consumption of services and goods throughout the day much more streamlined,” he said.
“The way that you consume and the way that merchants deliver goods and services will become much more streamlined.
“I think you’re going to see much more contextually rich stuff happening in the commerce space.”
Currently the one thing the various payments companies are riding is the growing reliance on and spread of mobile commerce and smartphone technology around the world.
“We’re seeing this massive shift of folks consuming content and conducting commerce on mobile,” Arya said.
Australia has some of the highest smartphone saturation rates in the world and it’s an opportunity businesses need to pay attention to.
Braintree has found just over half of Australian businesses have a website and only a quarter of those are mobile compatible.
“We believe the future of commerce is online, and more specifically, on mobile. The growth of ecommerce, the advances in mobile and the impact that the smartphone has had on daily human behaviour and consumption of goods and services all support this,” Arya says.
“It’s surprising to find so many Australian businesses don’t have a website, let alone a mobile site or native app, particularly given Australia’s reputation as a technology-forward country. Given the strong smartphone adoption rates, it’s very likely your customers are on their mobile device much of the day, so your business needs to be mobile too.”