Ever since Mastercard announced its efforts to make contactless payments even more secure the industry has been buzzing with questions. From what the technology is to how it will benefit the industry and the players in it. Even though Ecos is in its early stages, it is important to have these conversations and better understand how it applies to everyone from the merchant to the end consumer.
You may not know this, but the U.S. possibly has the most complex point of sale (POS) debit payment system on the planet. You can trace this back to its origins as an ATM card acceptance process, supported by multiple ATM networks. These grew into what we know as today’s POS networks. With support from major card brands, the concept of “signature debit” transactions is processed through credit networks.
The age-old question in the retail industry has been about who possesses the power of influence. Can the retailer change consumer behavior or do consumers have the power to affect what retailers offer or how they operate? This question is harder to answer than you think, as in most scenarios both retailers and the consumers meet somewhere in the middle. When you think about impulse purchases in a retail setting, you think of candy or gum at the corner store, sunglasses or wallets at an apparel retail chain, even automobile accessories when paying for your car being serviced. While impulse buys are based on consumer behavioral psychology, over the past few decades they have evolved into an effective strategy for retailers to influence shoppers into buying not just these products but anything new that is introduced in the stores.
The COVID-19 pandemic has changed travel and hospitality forever. 2020 saw many hotels and flights go empty for long periods. But with additional precautionary measures, CDC guidelines and the start of the vaccine rollout in the US, things are starting to look up. Most importantly, consumer confidence is making a comeback. According to Deloitte’s State of the Consumer Tracker, the percentage of US adults who feel safe staying in a hotel (46%) and flying (34%) reached their highest levels since April 2020. As hotels and travel organizations look to boost their business they need to keep a few things in mind:
The year 2020 changed has forever changed how retailers, restaurateurs and other merchants will accept payment. Consumers wanted – and expected – the ability to pay online, via mobile app, with contactless cards or mobile wallets, or in-person with EMV chip cards. Most of all, they expected the choice to pay in ways that were most convenient or made them feel most secure during social distancing.
To respond to this demand, merchants adapted their operations to meet those expectations by introducing or enhancing existing processes, such as:
