Introduction
Whilst at RTGS.global our grand vision is a complete re-plumb of the underlying financial infrastructure to create seamless payments, irrespective of timezone or geography, the real impact will be felt at an individual level: someone gets paid faster, or receives clear notifications throughout the transaction, or avoids stinging fees.
The payments industry has seen a dramatic transformation in recent years. What was once a lengthy, multi-layered transaction process is now a slick, secure, user-friendly experience, supported by a web of technologies, platforms, and services. As digital payments become the norm, the expectations of consumers are evolving rapidly, and businesses are finding that keeping up with these expectations is a matter of survival, not a nice-to-have.
In this blog, I take a look at how customer experience expectations in the payments industry are changing, the factors driving these changes, and what businesses need to do to stay ahead of the curve.
The Rise of Digital Payments and Changing Consumer Expectations
Over the past decade, the shift from cash to digital payments has been nothing short of revolutionary. Whether it's using a smartphone app to make a purchase, a contactless credit card, or even a biometric payment system, consumers are increasingly looking for seamless, fast, and secure methods of transacting. This has led to an exponential rise in the use of mobile wallets, QR code payments, and peer-to-peer (P2P) platforms.
Consumers now expect payments to be instantaneous, transparent, and effortless. If a payment experience is clunky, slow, or frustrating, it can result in lost customers, negative reviews, and a damaged reputation.
What Do Modern Consumers Want?
- Speed and Convenience
Consumers have little tolerance for slow or complicated payment processes. With the rapid adoption of mobile and contactless payments, people expect a frictionless transaction experience, whether they're paying for a cup of coffee or buying gym equipment online. The ability to check out quickly, without having to input lengthy credit card numbers or passwords, is now a baseline expectation.
Moreover, digital wallets like Apple Pay and Google Pay have made it easier to make purchases with just a tap of the phone. Consumers expect this level of convenience to be ubiquitous across all payment platforms and across all types of transactions.
- Security and Trust
With the increase in online shopping and mobile payments, security has become a top priority for consumers. They need assurance that their personal information, including credit card numbers and bank details, are protected against fraud and theft. According to a recent report, 79% of consumers are more likely to purchase from a company that offers secure payment options, whether through biometric authentication, two-factor authentication (2FA) or tokenisation.
Security isn’t just about preventing fraud – it’s also about creating an environment of trust. Brands that are transparent about how they protect customer data and give consumers control over their payment information build stronger relationships and increase customer loyalty.
- Personalisation
As consumers become more accustomed to tailored experiences in other sectors (think “people who enjoyed X went on to buy Y”), they now expect the same level of personalisation in their payment experiences.
Personalisation could extend beyond just recommendations – it’s also about how payments integrate into a consumer’s broader lifestyle. Payments need to be embedded seamlessly into daily activities, whether it’s offering rewards for frequent purchases or supporting local businesses that customers regularly shop at.
- Omnichannel Experience
Today’s consumers don’t just use one device or platform to make payments; they use multiple devices across various touchpoints. Whether it’s shopping on a mobile app, purchasing something from an e-commerce site via desktop, or paying in-store with a smartwatch, customers expect their payment experience to be consistent and unified across all platforms.
An omnichannel approach ensures that businesses can meet their customers where they are, offering the same fast, secure, and convenient payment experiences across mobile apps, websites, and physical locations.
- Global Reach and Multi-Currency Support
As the world becomes more interconnected, consumers increasingly expect businesses to offer global payment options. This means supporting multiple currencies, payment methods, and cross-border transactions seamlessly. Global giants like Amazon and Shopify already offer multi-currency support, and are setting the pace for small and mid-sized businesses to follow.
By offering an easy way for international customers to make payments, businesses can tap into new markets and ensure they’re not leaving money on the table. RTGS.global is contributing to financial inclusion by democratising access to cross-border payments, making them instant, highly secure and cost effective – in line with the efficiency levels that exist within the domestic/retail banking sector.
Factors Driving These Changing Expectations
The rapid changes in customer experience expectations within the payments industry can be attributed to several key factors:
- Technological Advancements
From the proliferation of smartphones to the rise of AI and blockchain technology, innovation in the tech space has driven a wave of change in how payments are processed and experienced. More sophisticated systems are making payments faster, safer, and more personalised than ever before.
- Consumer Demand for Seamless Integration
As consumer-facing platforms have evolved, consumers now expect a frictionless and integrated experience. Whether it’s through social media, apps, or websites, users want their experiences to be smooth and integrated, and payments are no exception. This has led to the rise of “buy now, pay later” options, QR code payments, and subscription models, which all rely on smooth, embedded payment systems.
- The Growing Importance of Data
Data is becoming a critical element in shaping customer expectations. Businesses now use data to personalise experiences, enhance security, and predict future customer needs. By analysing consumer behaviour, companies can offer highly relevant payment solutions that are tailored to their target audiences.
- Regulations and Consumer Protection
As payment methods evolve, so too does the regulatory landscape. Governments around the world are implementing stricter rules regarding data privacy and security, such as the European Union’s General Data Protection Regulation (GDPR) and the Payment Services Directive (PSD2). These regulations not only protect consumers but also elevate expectations around how businesses handle personal and financial data.
How Businesses Can Meet Changing Expectations
To meet these evolving demands, businesses must:
- Invest in Secure Payment Technologies: Ensure that your payment systems are compliant with security standards and implement the latest fraud prevention tools, including tokenization and biometric authentication.
- Embrace Omnichannel Solutions: Offer a consistent payment experience across all customer touchpoints. Create integrated systems that allow customers to switch seamlessly between platforms and channels for maximum convenience.
- Prioritise Speed and Convenience: Simplify your payment processes. This could involve offering one-click payments, subscription models, or integrating with digital wallets that customers already use.
- Leverage Data for Personalisation: Use customer data to offer personalised recommendations and rewards, enhancing the payment experience and encouraging repeat business.
- Stay Agile and Innovate: The payment landscape is constantly changing. Keep an eye on new technologies, trends, and customer behaviours, and be ready to adapt quickly to maintain competitive advantage.
Conclusion
In today’s rapidly evolving payments landscape, customers expect more than just a transaction. They want speed, security, convenience, personalisation, and a seamless experience that meets their needs across every device and platform. By understanding and responding to these changing expectations, businesses can not only retain customer loyalty but also create lasting relationships that drive growth.
