Frictionless Payments 101
What are Frictionless Payments?
In our digital age, seamless payment experiences are a consideration as crucial as brand loyalty. Customers increasingly prefer businesses that offer easy and efficient ways to pay. Frictionless payments require little effort from customers and eliminate obstacles in the payment process. The key elements of frictionless payments include:
- Speed: Quick transactions that do not slow down or hinder the shopping experience.
- Convenience: Easy-to-use payment methods that fit seamlessly into customer’s preferences and routines.
- Security: Safe transactions where sensitive information is protected.
A prime example of frictionless payment is mobile wallets, which have become a standard in today’s payment landscape. For many customers, using mobile wallets has become second nature, almost like muscle memory. Continue reading to discover the impact of frictionless payments on business and learn how you can streamline your transaction process.
Frictionless Payments Expand: Why These Modern Solutions Work
If you haven’t considered offering frictionless payments yet, now is the time. The demand for frictionless solutions knows no bounds, spanning campuses, arenas, online platforms, and in-app purchases. Each year, frictionless payment methods continue to grow as consumers adopt more convenient and efficient habits.
Here’s a list of frictionless payments to watch for and consider implementing for your business:
Contactless Cards
Contactless cards allow payments with just a tap (or dip), using EMV technology. Although they still require a physical card, these cards are less susceptible to fraud and create a unique impression each time they are used. With superior security, they have become the new standard compared to traditional swipe-only cards.
Mobile Wallets
Leaving your wallet at home is now a reality thanks to digital wallets. With a simple click, your digital card appears, making payments quick and easy. Mobile wallets utilize near field communication (NFC) for transmitting information, providing the same security as EMV cards. Popular mobile wallets include Apple Pay, Google Pay, and Samsung Pay.
Buy Now, Pay Later
This payment model offers consumers flexibility by allowing them to make purchases before paying in full. Customers can pay in installments, sometimes with interest. The market for buy now, pay later was valued at $1.64 billion in 2022 and is projected to grow at an annual rate of 24.3%, reaching projected $9.20 billion by 2030.
Apriva’s AprivaPay Mobile app supports a variety of buy now, pay later options including one-time and recurring digital invoices. These invoices can be sent via SMS or email, allowing customers to pay for goods and services before or after, without needing to present card data or interact directly with a POS system.
QR Codes
QR codes provide a flexible, contactless payment method when paired with mobile devices. They can be scanned in seconds, letting customers use various payment methods and apps beyond just a stored credit card. With Apriva, QR codes are secured by card not present tokenization, which hides and devalues sensitive data as it travels through the payment gateway. The encryption capabilities make QR codes a desirable and secure payment option, reducing the times a customer exposes and uses their card.
Biometric Technology
Biometric technology uses fingerprints, palm scans, facial recognition, voice recognition and more to verify identity and process transactions. While still relatively uncommon, biometric payments are highly secure. Juniper Research estimates that there will be over 100% market growth for global biometrics in the next four years. You may already use facial recognition on your phone, but soon you’ll be able to use the same technology when ordering at your favorite restaurants. Click here to learn more about this topic.-
Why Frictionless Payments Matter for Business
Meeting customer expectations means staying up to date with the latest technology and services. Offering frictionless payment options can set your business apart from competitors. While brand loyalty is carefully cultivated, providing a smooth buying experience can significantly enhance that loyalty. Customers today expect straightforward checkout processes. Whether online or in-store, they have little patience for complex flows.
Customer Experience as Brand Extension
Customer experience is an extension of your brand, and payment is one of the final steps in that journey. Prioritizing superior service means allowing customers to pay in whatever way suits them at that moment, as quickly as possible. By intelligently curating their payment experience, you make them feel valued and understood.
The Role of Payment Gateways
A reliable payment gateway is essential for maintaining a seamless transaction flow. Its primary role is to ensure payments are processed quickly and securely, regardless of the payment method customers choose. With over 50% of U.S. customers likely to abandon a complicated checkout process, selecting the right payment gateway is crucial for your business or merchants. To guarantee smooth transactions and positive customer experiences, your gateway should be dependable, secure, experienced in the industry, and transparent in its operations. Read our blog about choosing a payment gateway for more information.
Refresher on how to choose a payment gateway here!
The Value of Frictionless Options
Reinforcing your payment system to offer frictionless options brings significant value. Choosing the right payment partner who can simplify the process for you ensures seamless transactions across multiple channels.
Loyalty customers are invaluable, they hold significant power in determining your business’s success. In a world with endless options, and where one bad experience can turn shoppers away from future transactions, consumers will quickly shift to competitors offering better deals without the hassle.
Customer Data: A Double-Edged Sword in Frictionless Payments
The digital nature of frictionless payments has made it a lot easier for companies to collect consumer data. This includes browsing and order history, loyalty rewards, and shopping behavior—valuable insights that can be used to drive sales. Businesses can leverage this data to send personalized SMS and email messages, create targeted ads, and offer customized discounts.
While this is good news for companies, it raises concerns for consumers about the security and privacy of their personal information. It’s unsettling to browse a website briefly, switch to social media app, and see an ad for the exact product you were just viewing. The vast amounts of data generated through these transactions create more opportunities for fraud.
As privacy and security remain key challenges in frictionless payments, providers must prioritize safeguarding customer data. They need to ensure their systems are protected against malicious threats, while adhering to legal standards on data security and compliance.
How Apriva Enables Frictionless Payments
Apriva is your one-stop shop when building a secure, flexible payment system. We provide customers with a variety of payment options, ensuring smooth transactions and peace of mind when it comes to data protection.
Building your payment ecosystem can feel complex, but Apriva simplifies it. Acting as a gateway, processor, and supplier of EMV certified devices, Apriva offers comprehensive solutions to meet all your payment needs. Whether you are interested in white-labeling mobile payment apps, exploring diverse payment methods, or generating custom reports, we can be your one-stop payment solution.
Apriva supports multiple payment acceptance methods, including:
- Mobile wallets
- EMV chip cards
- Campus cards and other closed loop payments
- Digital invoices
- Virtual terminal
- Card tokenization
As a PCI level 1 service provider, Apriva is independently validated by VISA®, MasterCard®, American Express®, and the Payment Card Industry Security Standards Council™. We are certified every 2 years by a PCI Council Auditor, ensuring top-tier security. With Apriva, you can minimize the risk of data breaches and stay compliant with the highest security standards.
Frictionless payments are revolutionizing how businesses and consumers connect, offering speedy, convenient, and secure transactions. From mobile wallets to biometric technology, these modern solutions are being adopted across industries. To fully benefit from these innovations, businesses need a well-orchestrated payment system and strong data protection. Apriva’s comprehensive payment services with PCI-compliant security empower businesses to offer various payment options without compromising customer’s trust and safety. Now is the perfect time to embrace frictionless payments and keep your business stays ahead in the rapidly evolving digital landscape. Contact Apriva today to get started!
