The world has changed. Customer behaviour has changed. Business needs have changed. The pandemic has shown that in a blink of an eye, shopping can move almost completely online. It’s also shown us that plans and strategies can be rendered null and void in a heartbeat.
When we talk about the speed account-to-account payments deliver, a very important piece of the puzzle is the demand from the digital world we live in. Generation X, born between 1965 and 1980, saw the birth of computers. Millennials or Generation Y grew up in what we can call a technological revolution – from landlines to the first mobile phones and then onto the internet boom.
Then we have Generation Z, who were born between 1995 and 2012 and have never been without the internet, social media or any of the other myriad of tech offerings that have completely changed our world. To raise the stakes even higher, enter Generation Alpha, who will outnumber boomers over the next few years.
Let’s talk about generations and their spending
There’ll be nearly 2 billion people of Generation Alpha across the globe by 2025. Dubbed the ‘mini millennials’, they are more likely to develop an affinity to a brand passed on by their millennial parents and stick with them.
Nearly half of Gen Z used a Buy Now Pay Later service in the UK in 2021 to buy fashion and tech items. Their UK spending power comes in at £113 billion.
According to Experian, in 2020 millennials were set to spend the bulk of their money in the categories of retail, lifestyle and holidays. Their UK spending power comes in at £151 billion. Millennials are more likely than other generations to use mobile banking.
Let’s talk about what consumers want (and are demanding)
The great consumer payments race: Unpicking the challenges consumers face when paying online
When considering a new payment method, 76% of respondents expect to check out in a few steps.
60% would be swayed into using a new payment method if they weren't asked to manually enter their card details.
Retail payments reinvented: How consumer demand is changing
More than a third (36%) of online shoppers would spend a maximum of 1 to 3 minutes paying for goods and services online before abandoning their cart, highlighting inefficiencies in the payment and authentication process.
65% of respondents who have had to chase for a refund said that this made them feel frustrated.
Speed goes far beyond the checkout journey
Using Open Banking powered payments can reap many benefits for businesses. From replacing outdated technology with fit-for-purpose experiences to device-agnostic seamless payment journeys, the era of alternative payment methods is gaining blistering momentum. It’s an easily integrated and multi-faceted payment method that can bring benefits to various parts of every business. And we’ll explain how.
Innovative account-to-account (A2A) payments allow consumers to pay directly from their bank account straight to the merchant. The new payments ecosystem delivers faster payments by cutting out the need to set up an account, register or download any other apps.
Instead, consumers can verify their account details, check their balance and checkout with ease. Businesses also have the benefit of a one-stop shop portal, which gives them a bird’s eye view of everything happening.
Open Banking payments bypass all the friction faced by consumers and provide holistic solutions that can elevate customer sentiment and give businesses access to checkouts that convert, instant refunds, instalment payments and easy reconciliation.
7 ways businesses can benefit from A2A payments:
Customers are less likely to become frustrated by having to enter card details and potentially abandon their carts.
The three-tap checkout experience provides the seamless and fast checkout expected by consumers living in a digital-first age.
Businesses have peace of mind that their funds have landed almost instantly.
With Vyne’s Pay with bank, funds arrive fast, meaning happy customers and money in the bank sooner.
No more days spent waiting for refunds to be processed. This means customers are less likely to become frustrated and teams have more time to focus on growing the business.
The heavy lifting of manual reconciliation is replaced with a seamless and fast process with real-time notifications.
An automated process for bulk and individual payments to suppliers means that everything happens and can be viewed in one place and done through a single transaction.
How Vyne's Pay with bank works
How sectors can benefit
Retail
The retail sector is under strain with serial returns being made, profits dropping and a cost of living crisis, which means customers have tighter budgets. Retailers can use instant refunds to encourage repeat purchases and drive customer sentiment.
Travel
With a fast and seamless checkout, travel companies can increase their conversion rates, provide an elevated experience and drive business growth.
iGaming
The market is saturated and customer sentiment is high on the agenda for businesses. The ability to provide instant payouts means businesses can keep customers happy and attract more.
Small businesses
For small to medium businesses, cash flow is of the utmost importance. It can mean thriving or going under. SMEs can have complete visibility of payments with real-time status, knowing that when they release goods, they can be confident that funds have landed on their side.
Automotive
Buying a car is an important purchase for many. By providing customers with a payment method where they can pay directly from their bank account in a fast and seamless payment journey, sellers can create an experience that matches an important event. Sale made!