Cashless Payments in the Retail Industry—the Details
The nature of payments and financial transactions has gone through transformational changes over the past decade. Gold was replaced by gold backed currencies, currencies were replaced with plastic currency and now we have mobile payments that might replace credit cards. With each transition, more people gained access to finance than ever before–perhaps the biggest change was the use of credit cards, which allowed people to spend money they didn’t have.
The convenience offered by mobile payments and credit card payments is unmatched by any other payment method—especially where consumer spending is concerned. The retail industry is one of the fastest growing industries throughout the United States, reaching a valuation of $3.8 trillion in 2019. Similarly, the Chinese made $5.6 trillion despite the trade war with the US to become the single largest consumer market in the world. The fact that both these countries are well on their way to become cashless economies speaks volumes for why cashless payments are usually implemented in the retail industry.
Cashless Payment Trends in Retail
Companies like Amazon have perhaps made the most headway in the development of cashless purchasing process. If you go to your nearest Amazon Go store, you can just grab your products and walk out. Amazon will send you a receipt on your Amazon Go app, necessary for entry into the store, and give you payment options right there.
Other companies like AiFi and Grabango are developing similar applications which eliminate the checkout process altogether. In the process these companies make the purchasing process much more convenient and easier for the consumers who no longer need to wait in lines or wait for the cashier to process the receipts before they can pay. This allows shop owners, or Amazon for now, to cater to more people faster and generate more sales by keeping the store relatively emptier than your ordinary outlets.
This isn’t the only application of cashless payments— even retail banking has eliminated much of the bureaucratic red tape through the method. With more options to transfer money or make payments using apps like Venmo, people aren’t waiting around at banks. Even core banking services, like money transfers or credit card bill payments are made through the bank’s own apps.
Amazon’s achievements are only a first in a chain of developments that are bound to envelop consumer retail markets very soon. Cashless payments can potentially be employed across the entire retail industry, beyond just Amazon Go stores. Clothing, automobiles, sports goods and anything that comes under the heading of retail will completely change with the introduction of cashless payments.
UIC produces and distributes secure payment solutions and unattended payment systems for suppliers in the retail industry. Get in touch with the company today for more information on their services.