Among the many retail trends highlighted for 2012 and beyond by TrendWatching.com’s September 2012 Trend Briefing is the move toward cashless buying. This goes way beyond writing a check or debit card swipes at the store.
There’s little doubt that retail consumers have been going cashless for some time. More people than ever are using their smartphones to swipe for purchases. But this year, the concept of cashless buying will take a quantum leap as both Google and MasterCard introduce their cashless programs worldwide.
A recent report from Juniper Research predicted that global mobile payment volume will reach $730 billion by 2017, with at least $180 billion of this coming from Near Field Communication (NFC) retail payments. Where will NFC mobile payments take off? Jupiter predicts that North America, Western Europe, Far East Asia and China will lead the way, making up 90 percent of the mobile NFC retail payment market. It foresees that a quarter of all mobile users in Western Europe and the United States will use NFC devices to make POP payments.
As always, consumers will be drawn to the convenience of not having to carry cash or dig out their checkbooks. But Google’s mobile-pay programs and many like it will open up a brave new world of data-driven rewards, purchase history, and ever-enticing “deals.” The ramp up toward totally cashless buying will be spearheaded by a number of recently introduced programs.
The e-payment service Square lets users accept credit card payments via a card-reading portable device connected to their iPhone, iPad or Android device. While the card-reader and app are free, there is a 2.75% per payment charge. There’s also no waiting with this app. Once the system has been set up, users can accept payments right away. Last year, the app implemented a Siri-like update, which allowed users to pay by simply saying their name.
Google's free, NFC-enabled mobile payment system Google Wallet is already operational at a number of retail chains across the US. The system exploits MasterCard’s PayPass technology, allowing shoppers to simply tap their mobile device on special POP terminals. Participating stores allow customers to redeem special coupons, reap the instant rewards of sales promotions or accumulate loyalty points—all just by paying with Google Wallet.
PayPal recently announced a mobile payments application for Android devices. Once customers install the app and activate the PayPal widget, they can send or receive funds from another individual with a smartphone and PayPal account. Using NFC, both users need only move their devices close together to facilitate an instant funds transfer.
If you’re a retail manager, you’ll need to ramp up your mobile pay systems to accept the coming avalanche of consumer data that will come "swiping” your way. Armed with this data, you’ll instantly know your customers' product preferences and purchasing timetables. And that means being ready with NFC-enabled promotions and deals to keep customers coming back.
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