The future of payment facilities

Mathilde Cerdan, Loyalty Proposition Marketing Manager
15 October 2015

Electronic payment terminals are being transformed into privileged points of interaction, giving the opportunity to the banks and the merchants to know more about their customers. From a simple enrolment to entering personal details directly on the payment terminals, these devices are key to collect data, and therefore analyze customers’ behaviour.

The market’s challenge is to make the payment terminals the most efficient possible in order to minimize the wait and increase  customer satisfaction. People are more and more often dropping the basket and it is a risk that needs to be addressed in a competitive environment. New kinds of services are thus starting to emerge through payment devices. More than a payment tool, the terminal becomes a service hub: different services are proposed to the customers (donation, enrolment into a programme, redemption of advantages...), or used by the merchants themselves to enhance their knowledge of the client’s experience and satisfaction.

Customer Relationship

The first kind of services proposed on the electronic payment terminals or POS is third-party applications enabling the customer relationship management. From the simple satisfaction survey to the complete enrolment in a loyalty programme, the redemption of offers, the earning of cash back, there are many possibilities to help the merchants take better care of their customers. 
Merchants are eager to know more about their clients in order to gain their trust and adapt to a competitive market, with the final goal to ensure their revenue as much as possible. It is the payment ecosystem players' mission to provide such services to the merchants.

Omni channel

Payment tools are now evolving following the omnichannel trends. Whatever the channel used by the customers to pay, every interaction is an opportunity to know more and analyze their behaviour. By combining all the banking operations made by a customer, from the ATM to the POS and the e-commerce, it is possible to establish a complete behavioural profile of each customer. It is then to an analytical tool to segment and generate reports that will enable the bank to personalize its communication, influence the spending behaviour, and help merchants to do the same at the POS.

In Store

Mobile and tablet payment facilities have come to life in stores. These devices enhance the possibilities to better communicate with the customers, influencing them to give more information on their profile. Thanks to high quality designs and graphic options on these types of screens rather than on the usual POS terminals, it is easier to catch the attention of a customer, talk to him, and influence his behaviour. The goal of this new way to pay is to reduce the time between the purchasing decision and the actual payment by creating a more personal relationship through personalization, and avoid the moments of rupture when a salesperson would interfere.

All these evolutions represent fructuous market opportunities for distributors (manufacturers, banks, acquirers...) that have successfully integrated such applications, creating a new source of revenue through value-added services. It is also a way to differentiate their offers in a market where all of them initially bring the same proposition: a payment facility.