Retailers are going on the offensive. Tech savvy payments are their weapon of choice.
New technologies will change how people shop. One trend that is changing payments is prices that change by the hour. Making adjustments for markdowns or supply and demand with technology allows brick and mortar retailers to compete with online behemoths like eBay or Amazon. Variable prices is also appearing in restaurants. ‘Digital consumers have become accustomed to dynamic pricing,’ says The Financial Brand. Dynamic, variable pricing relies on data analytics and AI to analyse supply and demand and the customer relationship and find the optimal price.
Banks should follow suit.
Embrace dynamic pricing will help banks strengthen customer relationships and boost future revenue. As switching banks becomes more commonplace, consumers will increasingly expect personalised interactions, including pricing. Competitive pricing is a major reason for switching banks, says Accenture. The ability to price based on an overall relationship is logical to today’s digital consumer, says The Financial Brand..
Unmanned checkouts are all the rage.
Amazon Go has made headlines with its new tech savvy payments model. It is a checkout-free shopping experience. No physical payment needed. Opening on Jan 22 in Seattle, customers can collect their groceries and just walk out. Cameras track what you pick up, then charge your Amazon account. The store uses computer vision and machine learning so customers can simply take what they want and go.
‘Technology will be key to assisting retailers with creating new, meaningful ways for consumers to interact with the brand,’ writes Michelle Evans, specialist in disruptive technologies and global commerce.
By Grace Appleford, Research Analyst at Holland FinTech.