Top 10 Paying Trends of 2016
In the fast-moving world of payments here are the top 10 trends we’ve seen in 2016.
1. E-commerce… is rapidly evolving thanks to advances in online payment processing technology. The vast majority of merchants accept credit cards online. Whilst e-commerce’s portion of the total share of the UK retail market is still slim, nearly all the growth in the retail sector now happens in online sales.
2. Contactless Wearables… are the way forward, with over 86 million contactless cards in the UK. Half of Disney World wristbands are payment-capable Magicbands, Starbucks offers gift cards in the form of a wrist band payment device linked to the Starbucks app and Topshop offers contactless jackets, keychains and jewellery as ways to pay.
3. Mobile Shopping… 50% of UK online retail sales this year were from a mobile phone and 146 million consumers now use m-commerce, with purchases through in-app functionality.
4. Reward systems… are replacing traditional high street reward cards. Businesses like Starbucks are integrating rewards into their mobile apps and pioneering programmes that let customers order and pay for goods in advance, to avoid queuing.
5. Paying invisibly… is a quick and hassle-free experience. Apps like Uber and Deliveroo have credit card details pre-loaded into the apps, without waiting for card payments to be processed.
6. Social Media Payments… have turned their attention to payment processing. Facebook has a payment feature for Android and iOS. Twitter offers tweeting and paying via Pingit.
7. Generation Y… will be the savviest shoppers thanks to apps like Go Henry. They teach the value of money to children through allocating allowances and topping up balances by completing chores. Parents are in control whilst teaching their children how to be financially independent.
8. Bitcoin… has had a notoriously volatile value and yet it has been the best performing currency and asset of 2016. With record-low bond yields, uncertainty following Brexit and slow GDP growth, investors have been looking elsewhere for safe-haven assets and bitcoin’s value has surged.
9. Pokemon Go… has been the biggest gaming phenomenon of 2016. This augmented reality mobile app has more users than Twitter and initially added £6 billion to Nintendo’s stock value. It is free to play but has purchase options up to £79.99 for its in-game currency Poke Coins, which save time hunting for characters and unlock special features.
10. ArtificiaI Intelligence… has made the payment experience easier. In-app messenger bots are on the rise with retailers automating customer service and ordering processes. Shoppers regularly scan bar codes to add products to their shopping lists and speak to virtual assistants through voice recognition.
In 2017 we’re ready to watch out for a new era of digital assistants, enhanced connectivity and increased mobile wallets. Keep updated here with our Fidelity Payment blogs.