Smaller Retailers Will Pay the Price For Not Embracing New Payment Technology, warns SME Champion
Says ParcelHero’s David Jinks MILT: ‘Apple Pay is well-established in the US and already a hit in the UK following its July launch; Google’s Android Pay is imminent and Samsung’s new Pay App arrives in the US in September and will have its European launch first in the UK. Retailers who haven’t kept up with the latest new payment methods need to embrace new technology quickly to ensure consumers don’t vote with their feet come the Christmas sales period.’
David continues: ‘Around 250,000 locations in the UK alone should be able to use Apple Pay; and smart retailers will ensure they are one of this number. In addition the revolutionary new Samsung Pay system won’t even need special equipment. It doesn’t require new Near Field Communications (NFC) but will work off “old school” magnetic strip readers, using clever new Magnetic Secure Transmission technology that effectively tricks existing magstrip terminals into registering they have been swiped.’
Urges David: ‘It shouldn’t be the case that only the major retailers gain the benefits of the latest switch in consumer behaviour. SME’s need to be proactive about embracing new technology. ParcelHero’s latest research reveals 40 per cent of UK consumers plan to set a strict budget this Christmas and stick to it. The majority of UK shoppers (59%) believe a prepaid card with a set limit to spend on it would minimise the risk of overspending, and they are also considering new payment technologies to help them stick to their budgets.’
In the US David says Apple Pay, which generates dynamic security codes for each transaction, rather than reveal bank card numbers, is extremely popular in stores like Macys and Bloomingdales, which have welcomed the system. Google Wallet – soon to morph into Android Pay - is also popular amongst security conscious buyers.
Adds David: ‘In the UK, Apps such as EE’s Cash on Tapp mobile App has been widely accepted - although so far they are often limited to transactions under £20. Additionally a number of personal finance Apps proved very popular last Christmas with tech-minded shoppers. Apps such as Money Dashboard and Spending Tracker enabled consumers to keep an eye on all their expenses, from gifts to coffees!’