Payment Innovations & What They Mean for Your Business

For retailers who want to meet their customers’ expectations, it’s about offering them payment methods they want. From contactless transactions to financing options, payment innovations are shaping the future of retail. What options matter most, what do consumers expect, and how can businesses prepare for what’s next?

President and CEO, Kimberly Berneck, discusses which payment innovations are expected by today’s consumers and how they can separate you from the competition.

The Evolution of Payment Method

Over the last 15 years, retailers have been increasingly focused on payment methods, especially looking at options that increase security and offer convenience.

“It’s hard to imagine, but 10 years ago, consumers were scared to dip their card—they were so used to swiping,” says Berneck. “Once consumers saw how much more secure and easy this method was, especially when it came to fraud and security breaches, they got on board pretty quickly.”

Nowadays, retailers looking to fight for customers and brand loyalty are prioritizing alternative payment methods, allowing consumers to pay the way they want. What they want depends on what you sell and what demographics you serve. Traditional methods, including credit cards, still work for older consumers. However, if your consumers are diverse, especially generationally, it’s important to offer a range of convenient payment options. With consumers having so many choices for where they want to shop, not having alternative payment methods can mean losing sales to your competitors.

Top 3 Payment Innovations

Here are three ways payments are changing across retail.

1. Contactless and Mobile Payments

The shift towards touch-free transactions has accelerated in recent years. Mobile wallets like Apple Pay and Google Pay, and tap-to-pay credit cards have become a preferred payment method for many. Retailers and businesses with contactless payment options speed up transactions and enhance the customer experience.

2. Buy Now, Pay Later (BNPL)

Financing systems, popular payment methods that went out of style, are returning. BNPL services (e.g., Afterpay, Klarna) allow consumers to split purchases into smaller, interest-free payments. This trend has gained traction in online and brick-and-mortar stores, allowing businesses to increase sales and average order values while offering customers more financial flexibility.

“In many alternative methods, financing happens between the retailer and the processor. This is intended to grab market share and increase transaction size,” says Berneck. “This also means the next generation is getting used to financing their purchase over time, a trend that’ll be interesting to watch.”

3. Biometric Payment Methods

Biometric payment methods, including fingerprint scanning and facial recognition, aren’t necessarily mainstream, but they’re coming. These technologies reduce fraud risk and streamline transactions by eliminating the need for physical cards, pins, or passwords.

“In the future, we likely won’t carry any physical cards,” says Berneck. “No more lost credit cards, plus fraud will be much harder to commit.”

As adoption increases, biometric authentication could impact your payment strategies and give you an advantage over the competition.

“Right now, there’s a race to provide options and offerings to consumers,” says Berneck. “To offer a convenience that your competitor doesn’t.”

How BTM Helps Retailers Meet Customer Expectations

Updating your payment system isn’t an overnight process. On average, you can expect it to take 2-4 months, provided you’re working with an expert. Updating payment methods requires coordinating across multiple groups, including POS platforms, Software Integrators, and third-party payment vendors. BTM Global has years of experience bringing together and overseeing partners in the endeavor, as well as coordinating their piece, which results in successful payment projects for their customers.

“Over the past 18 years, BTM has implemented 60+ payment innovation projects with the top 10-12 providers across North America and worldwide,” says Berneck. “Because we have this focused area of expertise, our team can not only do the work but also guide best practices for all involved.”

Stay Up to Date With Your Payment Methods

At BTM Global, we help businesses navigate the complexities of payment innovations. Whether you’re looking to modernize your payment systems, enhance security, or optimize checkout, we have the expertise to guide you through the transformation. Contact our team to learn more.