Merel Nijland
Introduction
Since the start of the current COVID-19 crisis, digital payment methods have gained even further ground compared to cash, partly due to measures taken by banks. A trend that, of course, has been developing for a number of years but is now rapidly continuing.
The rise of new digital services is changing the payment industry — and not just online. Payment in physical stores is also increasingly being made through new services from tech companies that see their opportunities.
In a market that was previously dominated by cash, we are seeing the balance of power shift due to the rise of tech giants such as Apple, Google and Facebook. Due to the enormous ease of use of the digital payment methods they offer, the barrier for consumers is very small to go along with them.
So time to see how you can use these payment methods for your own benefit for 2021! We give you the 4 best payment methods to optimally serve your customer base.
- Pay with QR code
QR codes contain information that you can quickly request digitally and are a new way of contactless payment. A payment method where banks such as ING and Rabobank see the absolute future of payment. After all, it offers a lot of extra convenience for both the customer and you as an entrepreneur.
Suppose your customer pays by scanning a sticker, that saves you staff and queues at the checkout. Your customer no longer needs to carry a wallet and is out of the store in no time. So it's a win-win situation!
How does it work?
There are various options for offering payment via QR code, for example using your own phone. You show the QR code to your customer, the customer scans it and the payment is completed immediately. Other options include scanning on a payment terminal, tablet, receipt, phone, checkout screen, QR sticker or online.
Nearly 8 million people in the Netherlands use a banking app for payments.
- Pay with Apple Pay (e-wallet)
The e-wallet, or digital wallet, is also advancing as a means of payment in the Netherlands. Here, a link is made between the customer's bank account and an app.
Where this method of payment was first mainly used online, we now also see that these types of transactions are increasing, especially in the hospitality industry. The most important e-wallet of the moment is Apple Pay, but major players such as Samsung, Google and Amazon now also have their own e-wallets.
How does it work?
To be able to accept payments via an e-wallet such as Apple Pay in your company, you again need a payment terminal that is suitable for contactless payments. It's best to contact your payment provider. It can help you set up your terminal in such a way that you can accept the app.
By the way, parties such as Apple do not charge any additional costs for implementing the app. Depending on the type of e-wallet chosen, the transaction is then completed by your customer holding their smartphone or other portable device (smartwatch) close to the payment terminal.
- Paying via Afterpay
The name says it all: with Afterpay, you pay afterwards. The idea is that your customer can first view, try and experience the product. As you can imagine, this feels very safe for your customers! Although the payment solution is mainly used online, there are also physical stores that offer the option.
It is a nice alternative to other digital payment methods, with the big difference that the customer decides when to pay. It is interesting for you to know that AfterPay bears the full payment risk and takes care of the billing - you then no longer have to worry about processing your payment.
How does it work?
The integration is very easily arranged via a web platform (such as Shopify), Payment Service Provider (such as Buckaroo) and various partners (such as Thuiswinkel). They assume the entire payment risk, regardless of whether the consumer pays. So it's also a safe feeling for you as an entrepreneur.
Since 2017, repayment methods such as Afterpay and Klarna have increased significantly by 93% and 65% respectively.
- Pay via WhatsApp
In June this year, Whatsapp started a trial with digital payments in Brazil. Users link their debit or credit card to their WhatsApp account and are protected with a fingerprint or PIN. The expectation is to roll this out globally.
Because Whatsapp is now the standard way of communicating among many target groups, this way of paying is very interesting. So it's an option to keep a close eye on.
Cash as a payment method is the big loser
At Swishfund, we closely follow the trends in payment transactions. What we can say with certainty is that cash is the big loser in the battle for ease of payment.
At the beginning of 2020, the share of cash payments was 30% of the total number of cash and debit card payments at the cash register. The use of cash at its lowest point was 13% and has fallen somewhat to 23%, but is still significantly lower than before the pandemic. This can be seen across all age groups.
Source: DNB
To come back to ease of payment: that's the most important thing in 2020. Especially now that people have been forced to get used to other ways of payment. That is why, as an entrepreneur, it is smart to (start) offering the most used payment methods. We recommend that you at least explore these 4 options to make 2021 a successful year.
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