In the wake of the global COVID-19 pandemic, digital technologies are helping consumers and business owners stay connected while practicing social distancing. As government mandates shutter businesses around the world, record numbers of people are working from home. In this new, virtual normal, digital payment methods have largely replaced in-store shopping, and mobile and video conferencing have replaced on-site meetings.
The crisis has also placed burdens on global communications networks and supply chains, sparking innovation and heroism. Retailers, mobile carriers, internet service providers (ISPs), payment facilitators (payfacs) and independent software vendors (ISVs) are leveraging physical and digital infrastructures. Hotels are giving free room and board to healthcare workers serving on the front lines of the crisis. Manufacturers are shifting production to meet increased demand for medical supplies. Merchant service providers are waiving fees and funding small businesses.
As acts of courage and kindness continue to trend on national news and social media, payfacs and ISVs heroically work behind the scenes to keep digital commerce alive and well. Thanks to their efforts, consumers can have an uninterrupted customer experience across all channels, even at a time when millions of lives and businesses have been interrupted. Their integrated mobile and digital apps make commerce secure, simple, and seamless, enabling consumers to transact from anywhere on any device.
PSCU, a payments credit union service organization, surveyed approximately 1,750 credit union members and non-members between July and August 2019, sharing their demands, expectations, and preferences in a whitepaper, titled, “2019 Eye on Payments: Payment Preference Motivated by Convenience and Ease of Use.”
Survey respondents cited convenience and ease of use as most important, with nearly four in 10 credit union members and non-members opting for the most secure payment method when deciding how to pay. Seven out of 10 use mobile phone alerts to manage payment cards, which increased their feeling of safety when making purchases, according to the study. PSCU researchers suggested that EMV adoption and other mainstream security practices have made consumers feel more comfortable while shopping on mobile apps and online.
“Since the EMV liability shift, card-present fraud at the point-of-sale has decreased due to the prevalence of chip-enabled cards, according to Visa,” researchers wrote. “A decrease in the number of consumers impacted by fraud over the past year may help explain why security and safety are no longer the deciding factors behind how consumers pay, coupled with the advance of mobile card alerts that allow consumers to better manage their transactions.”
Like great unknown forces that can suddenly shift an economy, consumer preferences and expectations can change on a dime. Credit unions, merchants, and their service providers must be responsive to these trends and pivot along with them to remain competitive and relevant.
“Consumer preferences, expectations, and demands are constantly changing and shifting,” PSCU researchers wrote. “Convenience proves to be an important factor in choosing how to make a transaction. Credit unions need to ensure their offerings are convenient for members to access and utilize, as well as personalized in order to drive further engagement.”
Payfacs and ISVs enable small and midsize business owners to securely, quickly, and reliably process transactions while reducing risk. ISVs build extraordinary vertical solutions; payfacs provide the processing engines within those solutions that take the friction and pain out of paying. Together, they deliver a seamless, convenient, and enjoyable customer experience with purpose-built, ready-to-deploy solutions.
VyaPay, a Certified Payment Facilitator and PCI Level 1 Certified Payment Gateway processes a range of in-store and Card Not Present electronic payments, including major card brands, ACH, eChecks, 3D Secure, 3DSv2, and cross-border payment schemes. The company partners with merchant acquirers, ISOs, ISVs, and VARs to help merchants of all sizes and industries transform the B2B experience. For more details, contact us directly at 833-4-VYAPAY.