“Deliver a great experience, and customers will buy more, stay loyal, and spread the word. But what defines a great experience? Convenience, choice, and consistency,” writes Adam Ball, CCO at Prommt
Today’s consumers want a seamless brand experience across every channel – whether it’s a brand’s website, social media, mobile app, or physical store. In fact, 72 percent of consumers prefer connecting with brands across multiple channels, and 90 percent expect a consistent experience across all of them. They might browse a product in-store, consider it on your app, then checkout on their laptop later at home.
Customers expect a fluid, interconnected journey that blends convenience with personalisation, adding real value without being too intrusive. Businesses with strong omnichannel strategies enjoy an impressive 89 percent boost in customer retention.
Payments have taken a crucial role here. Millennials and Gen Z are the quickest to abandon a purchase if their preferred payment option isn’t available. But they’re not alone – 70 percent of consumers across all generations prioritise access to their preferred payment method when deciding which brand or online marketplace to shop. As the final touchpoint in a sale, the payment journey is a direct reflection of your brand and an experience that leaves a lasting impression.
Studies show that every generation now largely favours digital payments, with distinct preferences (desktop versus mobile, card versus digital wallets). Consistent across all generations is a need for security and convenience. Customers do not need to be presented with a checkout containing 20 of the most fashionable ways to pay. Providing too much choice can lead to confusion and abandonment.
To put omnichannel payments into action, here are three key approaches to consider:
Payment Orchestration
Customers aren’t necessarily thinking of great new ways to pay. But they’ll follow your lead if it is secure and convenient. With smart payment orchestration, retailers can offer a range of payment methods while nudging the customer toward the optimal way to pay based on transaction value, type, or location. Optimising payment options to create a payment experience that serves both retailers and customers.
For instance, a travel agent might accept card payments for deposits while restricting payment to open banking for the final balance. This way, customers benefit from credit card protection, while the merchant avoids high card fees on larger transactions.
Open Banking – or “Pay by Bank” as it is becoming the de facto description – is especially suited for high-value purchases, providing a faster, easier, and more cost-effective payment solution. Retailers save significantly by reducing interchange fees, minimising fraud, and cutting operational costs. Meanwhile, customers enjoy a secure and streamlined experience, paying directly from their banking app with just a few clicks – no need to enter lengthy account details or worry about transaction errors.
Smart Pay-by-Link Solutions
Payment Orchestration is essentially part of a dialogue with the customer and advanced pay-by-link solutions are designed to move with your customers, bringing the checkout to wherever is convenient to them. For example, after a personal consultation – whether in-person or online – a luxury retailer can send a secure, merchant-branded payment link with multiple payment options via SMS, email, webchat, or messaging apps, based on their client’s preference. It’s seamless and secure, giving the customer full control over how and when they pay, while extending the luxury experience all the way to checkout.
Another powerful use case is integrating pay-by-link features into social media and messaging apps, allowing customers to make purchases directly from live videos using multiple payment options. In 2023, social commerce generated an estimated $571 billion USD worldwide, with projections to surpass $1 trillion by 2028, driven by platforms like Facebook, Instagram, and TikTok. Live commerce conversion rates are up to 10 times higher than traditional e-commerce, as influencers – trusted figures in the digital space – play a significant role in shaping consumer behaviour. As of April 2024, over 5 billion people are active on social media, collectively spending 12 billion hours a day on these platforms.
With such vast potential, pay-by-link solutions are a perfect complement to web, app, and in-store payments, creating a truly cohesive experience.
Data Analytics and Automation
Retailers are capturing more and more information about their customers and can tap into data and transaction history to identify the preferred payment and delivery options, creating a more personalised and seamless experience. By analysing behaviour patterns, businesses can proactively address cart abandonment and refine the checkout process to remove friction points. Features like saving cards on file, offering recurring payments for subscriptions and staged payments help break down barriers and maximise payment success rates.
Today’s shoppers switch between channels with ease, so it’s important to ensure that they are continuing to interact with your brand. Whether online or in-store, they need a consistent experience that aligns with what they perceive to be your brand values. With a growing demand for personalised and seamless interactions, adopting smart and flexible payment solutions has become essential. Omnichannel payments bridge the generational gap, elevate the customer experience, boost conversions, increase retention, and set businesses up for long-term success in an interconnected world.
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