Accelerated change continues in the payments space, and VARs and ISVs need to be keenly aware of payment trends taking shape for 2023. Ensure your clients have the technology necessary to give them these essential capabilities and keep them on trend.
Mobile Wallet Payments on All Channels
Additionally, mobile wallets give consumers one tool for managing payments on any channel and keep loyalty account information handy as well.
With the rise of e-commerce, geographical lines blur as consumers now have access to retailers across borders. Growth in cross-border payments is attributed to the adoption of smartphone technology, mobile wallets, and the fact that 95 percent of all global purchases will be online by 2040.
North American merchants need solutions that enable cross-border payments, including
- Easy facilitation of payments between different countries (for example, the United States and Canada).
- The ability for a consumer to view the price of an item in their currency.
- Accurate tax amounts and information specific to the consumer’s and merchant’s regions included at the time of purchase.
ISVs and VARs forming partnerships with payment companies for cross-border payment capabilities should ensure the partner’s solution is processor-agnostic and can deliver both card-present and card-not-present transactions. It’s also essential to choose a partner with proven success with cross-border payments. You and your clients can benefit from working with a partner that services both the United States and Canada and provides the same code sets for development, shared tokens for processing, and real-time reporting, regardless of what country the payment is issued or received.
Buy Now, Pay Later
In 2023, payment trends like buy now, pay later (BNPL), which gained traction throughout the pandemic, will continue to skyrocket, particularly as inflation rises. BNPL payments totaled $49 billion in 2021 and are projected to grow at a CAGR of 32.5 percent through 2028. This means that merchants who have been dragging their feet on implementation strongly need to consider adoption to remain competitive.
Consumers appreciate splitting payments of big-ticket items into four payments but still receive their merchandise immediately – and avoiding paying interest on credit card purchases.
QR Codes for More Use Cases
QR code payments are also on the list of top 2023 payment trends. This payment method allows consumers to scan a code that takes them to a payments page, much like when making an online purchase. During the pandemic, it was an easy and convenient way for merchants to enable touchless payments without payment terminals equipped with near-field communication (NFC) technology. Look for QR code payments to continue to trend in these areas.
- Restaurants: Consumers can settle checks or bar tabs without waiting for a server.
- Self-service: Shoppers can scan on-screen QR codes to process payments.
- In-store: A fast and easy way to transfer information between devices, implementing QR code payments allows merchants to check out a customer anywhere within the store by enabling them to scan barcodes with their smartphones.
- Parking: QR codes help alleviate congested payment processes in parking lots and garages. Consumers can scan QR codes to open a secure payments page to book and pay for a space.
Keep These Things in Mind When Helping Merchants Keep Up with New Payment Trends
- Cybersecurity: New ways to pay can open the door to new types of cyberattacks. VARs and ISVs need to remind merchants to keep security top of mind and provide the solutions they need to enhance security.
- M&A Activity: The payments landscape continually changes; agnostic solutions help future-proof systems when mergers or ownership changes occur.
- Skills Gap: With the payments space becoming more global and more sophisticated around every turn, VARs and ISVs must upskill their employees and pursue new partnerships with providers like Datacap Systems with resources to help them level up.
The key takeaway for VARs and ISVs is that it’s essential to keep up with 2023 payment trends, whether driven by technology or consumer behaviors, to help your clients stay relevant – and to keep your solutions relevant as well. Make sure your roadmap takes these trends into account, and you have plans to deliver.