2019 Trends In Payments For Small Businesses

Over the last few years the small business landscape has gone through serious changes, perhaps none more than the merchant sector. Just about every advantage once reserved for big business has been somehow scaled, repackaged, or economized for the small business owner to leverage in order to accelerate their own growth. Innovations in industries like banking, advertising, and technology have empowered small business owners to focus on their driving vision instead of the multitude of administrative tasks that often slow things down. Now the question is, what are the trends and insights small businesses should be focusing on to take their businesses even further.

Philip McHugh, Senior EVP and President TSYS Merchant Solutions, talked about his top three trends for merchants in 2019. Let’s break down each one and consider their implications.

Trend 1: The strong economy will continue, but businesses must continue to get smarter.

“People talk about a retail Armageddon and there’s a lot of negativity out in the news, but actually, overall the economy has been incredibly strong. Companies and small businesses will have to be smarter and use technology in a smarter way to survive.” – Philip McHugh

The labor market is strong, new businesses have been opening, and profits are up, and as we have seen, technology is the great equalizer for small businesses. It can create efficiencies and amplify limited resources to help people get more done with less. It’s extremely important to remember that simply riding out a good economy is not a strategy for success. During the good times, it’s extremely important for small businesses to re-invest and upgrade in the technology that can provide efficiencies and help strengthen their business in order to weather the cyclical downturns that are sure to come.

Trend 2: The explosion of choice will continue to give small businesses buying power.

“The second trend I see with SMBs is the explosion of choice, the explosion of the overall offer. For our industry, that basic, simple device with simple merchant acquiring contract is going to fade out over time. Now we have to be much more solution led.”  – Philip McHugh

When it comes to purchasing for a small business there seems to be a seemingly endless range of choice. Ecommerce, social media, and easily available reviews and content have created complete transparency to make this the ultimate buyers’ market. Small businesses expect more from their vendors and suppliers, and we must do everything we can to deliver on those expectations.

Trend 3: Software, software, software.

“There are so many companies out there using software to simplify the life of the merchant, but I see this only growing and growing and growing in every single industry.” – Philip McHugh

The trend of integrated software vendors or SaaS companies is almost mind blowing, but it’s really amazing how these solutions have helped small business owners manage just about every aspect of their day to day. For small business merchants, the point-of-sale solutions have become really exciting. The back-office capabilities have become so powerful and easy-to-use and are now moving to become highly specialized for a range of major verticals like bar and restaurant, retail, medical and field service.

Ultimately, it’s about serving the customer.

 

 

https://www.tsys.com/news-innovation/whats-new/Articles-and-Blogs/Industry-Insights/Merchant/2019/2019-trends-in-payments-for-small-businesses.aspx


Payments Analytics Highlight Valentine’s Day Spending Trends

On this Valentine’s Day, insights from payments data show that Americans will continue to increase their day of love spending on experiences, according to an analysis from ETA member Mastercard. According to Mastercard SpendingPulse, which provides overall retail spending trends across all payment types, including cash and check, experiential purchases – restaurants and hotels – is set experience solid growth this Valentine’s Day.

For restaurants, retail sales could increase 5.4 percent to $15.3 billion today, Mastercard predicts. For hotels, sales could jump nearly ten percent year-over-year, reaching $1.4 billion.

Unlikely to feel the love tonight are more traditional Valentine gifts, the report said. Jewelry sales are expected to decrease this year to $1.1 billion, despite a 2018 Valentine’s Day performance that surged over 25 percent higher than 2017. Overall luxury sales are likely to be flat, Mastercard predicts, generated $250 million and falling just .4 percent.

Data from the National Retail Federation’s (NRF) Valentine’s Day Spending Survey predicts that consumers will spend $162 per person on average on Valentine’s Day in 2019, up from $144 in 2018. Despite the higher average spend, NRF data suggests a downward trend in participation in the holiday – 51 percent of Americans plan to celebrate the holiday in 2019, down from 55 percent last year and from a high of 63 percent in 2007.

Significant others aren’t always the focus of Valentine’s Day spending, the NRF survey found. Gifts for pets continue to be popular, the NRF report says – 20 percent of consumers will buy a present for the pets, totaling $886 million and dwarfing 2008’s $519 million. And 11 percent of Americans plan on treating themselves to gifts like clothing and jewelry; just under 10 percent plan to get together with other single friends and family.

 

https://www.electran.org/publication/transactiontrends/payments-analytics-highlight-valentines-day-spending-trends/


ETA Expert Insights: Imagining the Future of Mobile Payments

By the ETA Mobile Payments Committee

Our industry spends a lot of time trying to make our products and services invisible. That is, we try to make payments frictionless so that the end user doesn’t have to think about the process at all. We want consumers to focus on what they’re buying, not how they’re buying. The ETA Mobile Payments Committee works hard to make this seamless shopping experience a reality for everyone by promoting the adoption of mobile payments and identifying ways to expand the opportunities afforded by new technology. Below, committee members step back and consider what the mobile payments space will look like in 2025.

Q: Fast-Forward to 2025 – what is your wildest idea in terms of what will be hot in the Mobile Payments space?

Harry Hargens, TSYS: We may see a significant number of merchants (retail and restaurants) deploy technology that enables an “Uber experience”. Walk in, pick up an item you want to purchase, walk out. Or, finish your meal and just walk out. No interaction with a clerk, waiter, or POS required.  I can’t predict exactly how this will work, but I’m pretty sure that a mobile device (phone, wearable, or implant) will be involved.

Craig Ross, Apple: “Hey Siri, pay for my items.” This is the catch-phrase that I think will be commonplace in 2025. I envision a world where I will be able to select items in a store and place them in a lightweight, reusable, and biodegradable bag made from hemp. Once I’ve completed my shopping, all I will need to do is speak those six words and Siri will take care of the rest. I will not need to authenticate via TouchID or FaceID, as Siri will use the biometrics of my voice to authenticate the transaction and then leverage Apple Pay to complete the transaction. Also, since Siri will know where I am, based on geolocation, she will be able to also send along my loyalty credentials so that I receive my standard double-points or loyalty discount percentage. Talk about hassle-free (and hands-free) commerce …

Steve Klebe, Google: Conversational Commerce (“OK Google, I need a Tall Latte”) is here now and will become much more pervasive in the next 5 years. Starbucks’ integration with Google Assistant is available today across Android, iOS and any Assistant enabled device from a variety of purveyors.

Markiyan Malko, Paysafe: At storefronts I can envision the Amazon Go type of experience where a consumer effectively walks in, grabs what they want, and walk out. We have the tech today and by 2025 it will be cheap enough to deploy and integrate that many mid-large retailers will have it. In eCommerce, I can see the checkout experience getting more streamlined as offerings like Apple Pay in Safari grow and the W3C works on the Payment Request API to make the integration of payments simple for merchants.

 

 

Source: https://www.electran.org/publication/transactiontrends/eta-expert-insights-imagining-the-future-of-mobile-payments/