Payment by check and by card has been joined by mobile and online payments. In France, FEVAD (Federation of e-commerce and distance selling) estimates that in 2013 €2.6 billion worth of sales were effected by mobile Internet, smartphones and tablets. This represents an increase of 160% compared to 2012 and a total of 5% of the Internet sales market. These new payment methods use client knowledge to adapt themselves as best they can to user habits.
All stakeholders including banks, merchants, card issuers, mobile operators and device manufacturers are working collaboratively to develop a multi-channel payment process in line with customer expectations. Thanks to data analysis technology, new players in the payment market are able to better understand consumer habits. Client knowledge is built up through a collection of data from multiple sources. In other words, a 360° view! The real time understanding of each customer depends upon both an advanced statistical analysis and automatic learning techniques relating to very large data sets.
It is thanks to this multitude of data that companies can better understand their customers and further customize their communications and processes. Responses, comments, clicks, shares: each reaction of every client is processed and analyzed. This analysis can provide information not only about the effectiveness of advertising campaigns, customer loyalty but also regarding changing consumption habits or the financial benefits of a communication campaign. This information is intended to ensure that these new channels are fully adapted to consumer habits.
A safe and improved customer experience
Then there are also the payments made through social networks. We note, for example, that Facebook has hired the former president of PayPal. In France, the « banque populaire » and « la caisse d’épargne » have developed the S-Money application that allows the transfer of money between Twitter users. Denmark is at the forefront of mobile payments. Two initiatives of “cashless” payment have been announced there. It will be possible to pay by mobile phone in all stores in the country and a pilot project will be launched where only mobile payments will be allowed. The stores will be allowed to refuse cash payments. The digital transformation has forced the payment ecosystem to adapt and evolve with it. Mutations have allowed businesses to operate differently. Payment providers must ensure that the customer experience is improved whilst ensuring that regulations and safety requirements are satisfied.