COMMENTARY: How Payments Have Boosted the Customer …

When you’re pressed for time, there’s probably a handful of neighborhood stores where you shop regularly. You can depend on them in those hurried moments, whether it’s the small retailer that stocks your favorite items, the local coffee shop that knows just how you like your coffee, or the mobile groomer that does wonders with your energetic pet. As different as all these small businesses are, they likely have something in common: modern payment solutions that get you in and out and let you pay your way.

In this article, I’ll explore how small merchants’ adoption of modern payment technology to keep up with consumer demand for speed and convenience helps keep them competitive by offering a positive customer experience and strengthening customer loyalty.

Yazdian: “The evolution of payment methods in local shops … enables businesses to streamline their operations, level up their marketing initiatives, and better serve their customers overall.”

Our 2022 consumer research shows that most customers still pay in cash for small-ticket items, such as pastries from a bakery. However, with the proliferation of digital technology and increased demand for speed and convenience at the checkout, the shift to card payments among consumers in the U.S. has accelerated over time. That’s leading more merchants to implement modern point-of-sale systems.

In fact, as enhancements in checkout technology become more accessible, many small merchants both understand the value of the developments and are actively putting them to use. In a separate study released earlier this year, we found that 70% of merchants plan to incorporate new payments technology within the next 12 months. That study surveyed more than 200 U.S. brick-and-mortar businesses.

In the same study, we learned that the most sought-after enhancements ranged from the availability of actionable customer insights to payment terminals that enable contactless payments, or tap to pay, via a mobile device or contactless chip card. Merchants that have integrated a POS solution are accepting payments more than doing any other function, but many also use these platforms for accounting services, inventory management, gift cards, and mobile loyalty programs. They’re even leveraging internal customer data to drive social promotion and marketing campaigns.

Efficiency and maintaining greater control over the business are the two benefits that many merchants cite most frequently when asked how an integrated POS helps their business build an improved customer experience. Small businesses are also embracing traditional payment methods alongside the acceptance of alternative payment solutions, such as digital wallets and eCash. Their aim is to give their customers the option to pay using the most convenient and efficient method for them.

Modern payment methods have made paying for errands more convenient, efficient, and rewarding for customers and small businesses alike. The key to mastering the checkout is to offer simple and modern approaches that help create a positive and quick payment experience. This starts by partnering with a payments provider that can offer both insight around the POS and tech that works best for the business model.

This will then lead to broadening payment acceptance to include a diverse mix of solutions at the point of sale. Local businesses have also begun to offer loyalty programs through apps that allow customers to accrue points for their purchases. These loyalty programs not only incentivize customers to return, but also provide businesses with valuable insights into their customers’ purchasing habits and preferences.

By using data from these apps, coffee shops can personalize their marketing efforts and create a more engaging and rewarding experience for their most loyal customers. Pet shops can remind customers about upcoming grooming services, send coupons and samples, or invite pet owners to bring their furry family members to try new treats they may be selling. The evolution of payment methods in local shops has not only made purchasing products and services more convenient.

It also enables businesses to streamline their operations, level up their marketing initiatives, and better serve their customers overall.

By embracing modern payment technologies and enhancing loyalty programs, coffee shops, pet salons, and businesses of all processing volumes can create a more efficient and engaging experience for their customers, leading to increased loyalty and repeat business.

–Afshin Yazdian is president, Merchant Solutions, at Paysafe Ltd.