MEMBER PAYMENTS
MONEY MATTERS
What’s the future of member payments? Technology is moving fast, but is it helping operators to make more money? Kath Hudson asks the experts
A
ccording to research from payment service Judo, one in five consumers failed to make a purchase in a shop in
the last six months because the retailer didn’t take cards. Some 70 per cent of consumers prefer to pay by card, while 60 per cent say they would spend more with a business that takes cards than one that doesn’t. There’s a perception among small
businesses in particular that card transactions are too expensive to process, or simply not as convenient as cash. However, that need no longer be an issue thanks to innovative products from companies such as Swedish fi rm iZettle, whose new service allows anyone to carry out a card transaction on their smartphone or tablet. Two devices are offered which can plug into, or wirelessly connect to, the smartphone. One accepts a PIN (and costs £99), while the other takes signatures (£20). Both come with an app installed onto the phone or tablet. iZettle takes 2.75 per cent commission on each transaction. Analytics are available to keep track of payments, revenue and returning customers, which will show if the system is washing its face. Or is cashless and cardless the way
to go – if members could pay via their phone, for example, would this make them more inclined to have an impulsive coffee, or buy a new swimsuit while the endorphins are fl owing? In general, are clubs keeping up with
consumer trends? What new technology is coming on-stream that could help operators offer a more convenient service, removing barriers to customers spending money and thereby boosting secondary revenue? We ask the experts.
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TOM WITHERS GLADSTONE: HEAD OF SALES Removing the barriers that prevent customers from spending money, including the need for cash or card, is essential to increase secondary spend in clubs. Cashless systems have been around
for over 20 years and are a tried and tested method in adjacent industries such as golf. Paying onto an account is the simplest way to offer this. However, the fi tness industry uptake of this technology has, so far, remained in high-end, private sector clubs. The way we’re heading is towards
continuous authority payments, similar to how Amazon and iTunes work. The member sets up an account linked to a payment card and can spend by entering a password. It’s easy for the consumer and secure for operators, as card details are held off-site by secure bureau services, avoiding PCI complications. Payment service providers like PayPal
are launching new technology this year that will allow people to pay by swiping their phones, using this continuous authority service. Barclaycard already issues “Wave and Pay” stickers for phones, which allow them to be swiped for low-level transactions. It’s an acknowledgement by card companies that, while people might not always have their wallets, they invariably carry their phone with them. Continuous authority will supersede
the other cashless models, as it breaks down all the barriers for purchasing and increases spend. How often do you put a few more items than you intended in your basket when shopping on Amazon?
Read Health Club Management online at
healthclubmanagement.co.uk/digital
ANDRES MORAN MINDBODY: DIRECTOR OF BUSINESS DEVELOPMENT MINDBODY introduced the Express app in May this year, which takes all the daily tasks needed to run a health club and makes them mobile, including adding new clients, getting them to sign waiver forms and checking them into classes. The most popular function of our new
app is the ability to swipe a credit card straight from your mobile device to take a payment. It makes the customer experience more about the interaction and less about the front desk. Imagine not having a front desk at all – that’s now becoming a possibility. Empowering clients to manage their
own experience by giving them access to their account, class schedules, bookings
July 2013 © Cybertrek 2013
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