Expert Insight
THE FASTEST ROUTE IS FANTASTIC…BUT WE NEED TO BE CAUTIOUS – CONTACTLESS AND DIRECT TRANSFERS In October 2021 there were 1.3 billion contactless card transactions, which is 34.1% more than October 2020, and 74.5% more than October 2019. [2] Our appetite for speedy, seamless transactions is not reducing. However, as the contactless card limit in the UK rose to £100, there are some reservations from consumers as to whether this will enable overspending, and from retailers with regards to higher cost ‘walk-offs’ – customers leaving the store without realising their payment hasn’t gone through.
Mobile banking, PIN on Glass/PIN transactions and direct transfers (bank to bank), are all emerging technologies that will reduce costs and facilitate fast payments. Yet, hospitality providers should be aware that it’s likely we will see card schemes and banks begin introducing some other charges for these in order to recoup their profits lost from the reduction in sales of card terminals.
SOME THINGS WILL GET LEFT BEHIND – CASH The rate at which the payment landscape has shifted to cashless has been irreversibly accelerated by the pandemic. Cash as a percentage of all payments fell from 56% in 2010, to 45% in 2015, and then with a steep decline to 17% in 2020.[1]
We have reached a tipping point where there is no going back, but to move forward we need to ensure we are working with the right payment methods that benefit businesses and consumers.
IT CAN BE HARD TO KNOW WHICH WAY TO GO – BIOMETRIC PAYMENTS AND CRYPTOCURRENCY Biometric payment will almost certainly revolutionise the payment landscape. However, we can’t yet know in which form biometrics will be most widely and effectively implemented in the hospitality landscape. Iris, fingerprint, facial, movement, and voice are all big news in biometric payment technology. ‘Pay by selfie’ or ‘smile to pay’ services have been around for a while, especially in China, but haven’t become widespread in the UK or Europe, so we have yet to see which of these methods will pull ahead.
Before Covid-19 hit, it seemed as though fingerprints might emerge as the foremost biometric payment method, but the emphasis on reducing touchpoints to cut back
[1]
https://www.ukfinance.org.uk/sites/default/files/uploads/SUMMARY-UK-Payment-Markets-2021-FINAL.pdf [2]
https://www.ukfinance.org.uk/data-and-research/data/cards/card-spending
www.venue-insight.com February 2022 37
on the spread of virus has meant facial and iris are becoming more prevalent. Although it’s possible Amazons’ palm/vein recent launch may be the way forward.
Another uncertainty is whether cryptocurrencies come into play as a method of payment in our day to day lives? Could we be paying for our morning coffee in crypto in the next few years…unlikely, but it’s hard to say never.
KEEP MOVING FORWARD, BUT THERE IS MUCH TO BE LEARNT FROM THE PATH YOU’VE TRAVELLED To understand the future, we need to look at the past. When it comes to technology, we have to understand how and why changes have happened, by looking at consumer behaviour, reservations and the factors which have influenced their decision to embrace certain technologies. Generational adoption, especially in technology, is a continuous iterative process.
PoS as an independent process doesn’t really exist anymore, instead we have different solutions coming together seamlessly to take customers on a streamlined, personalised journey. Technology has facilitated us interacting with customers, collecting data and taking payments in the easiest way possible.
Utilising personal data for a better consumer experience, whilst creating a hospitality journey with frictionless processes and transactions, is certainly the future of payments, but the focus should be on security and ensuring data is used responsibly.
itslolly.com
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