Alternative payment methods will continue to shake the retail industry
The introduction of new payment methods is constant and customers have high expectations.
Retailers must stay nimble to accommodate new technologies as they emerge.
2018 will continue to see mobile payment applications and their use grow exponentially. Apple Pay is already reporting more than one million new users each week. Popular cloud based wallets such as WeChat Pay and Alipay will also break down borders and disrupt the payments ecosystem.
As is often the case, the Nordics may offer some strong indication as to where we are headed. Banks there have collaborated to establish mobile payments schemes, which are remarkably successful.
MobilePay, which launched in Denmark in 2013 has grown to more than 3.6 million users (about half the population) in three years. Norway’s VIPPS and Sweden’s Swish are two other very strong models. These schemes support bank account to bank account transfers – a different model to the now-familiar use of a smartphone to initiate a card transaction.