5 payment trends you need to know in 2020
What’s one of the best ways to stay ahead in the e-commerce payments game? Knowing what’s going on. This is why we’ve put together our top five payments trends for 2020: to help your business grow and set you on the way to giving your customers the easiest payment experience possible.
Trend 1: Mobile payments and wallets
More and more people are shopping and paying for items online with their mobile phones and this will only continue to grow. Do you know why? Because it’s convenient for consumers since most of them have mobile phones on which they do almost everything.
This means that the easier you as a merchant make it to pay on mobile, the better it is for your business.
An easy and safe way to cover mobile payments is through mobile wallets, also known as eWallets or digital wallets like Apple Pay. The safety part comes in that consumers must authenticate payments using two factors. In terms of mobile, this usually means using a unique device, aka a consumer’s phone, and a biometric like their fingerprint or face.
Another way to include mobile payments is to offer QR codes. Even when people shop online on desktops, they like to pay with their phones because it’s convenient. Generating a QR code where all your customers have to do to pay is scan a code and authenticate ticks the convenience box.
Trend 2: Seamless payments
It may be obvious, but we can’t repeat it enough: consumers expect payments to be as easy as possible. So much so that the more steps you have in a checkout process, the fewer consumers will potentially buy something.
Hence, you can increase the convenience factor in your checkout by lowering the number of steps it takes to buy, which is what’s referred to in the payments industry as “reducing friction”.
One way of reducing friction? Not redirecting consumers to an outside website when paying. This gives them a seamless payment experience that looks and feels the same, making your customers feel safe. Here, we’ve created Mollie Components for credit card transactions, which lets your customers pay within your webshop environment.
Trend 3: Digital payments everywhere
The great thing about digital payments is that they can be connected to almost everything. That’s why they’re showing up in digital spaces that are crucial to your business.
For example, take accounting and invoicing software. Integrating payments in software means you have to switch less between different platforms, which saves you time and effort.
This is why we have a ton of integrations with major accounting and invoicing software, webshop platforms, and other software, and we’re constantly adding more. We’ve even created a payment link you can send your customers in an email or text message, making it that much easier to have payments where you need them.
Trend 4: Subscriptions
There’s no denying it: the subscription market is growing, and it’s going through the roof. Subscriptions aren’t just for entertainment like Netflix, though: they’re for everything from car hiring and bicycles to clothing, food, software, and even dog treats.
But do you know why all of this is happening?
We don’t want to sound like a broken record here, but we will: because it’s convenient for consumers. They can use products that are always up-to-date and have no maintenance costs. All for a monthly fee usually significantly lower than outright purchasing an item. This saves them a lot of time and gives them peace of mind.
As a merchant, subscriptions open up your offerings to a much larger group of people and can earn you a steadier cash flow. Setting them up, though, on your own can be difficult. But we’ve got you covered on that front, too: our eCurring product makes setting up and managing subscriptions a breeze.
Trend 5: Security
With more people shopping online, payment security for consumers is critical to both preventing fraud and keeping your customers safe.
So, how should you go about shoring up your payment security?
Two -factor authentication (2FA)
As of 31 December 2020, all online payments in Europe will have to have 2FA. But fear not: the majority of our payment methods are already compliant, with the remainder being exempt.
Keeping up with security
You should also stay on top of the latest security developments. This can take a lot of time and effort for businesses, though. At Mollie, security is our job, and we have full-time staff dedicated to making our platform as secure as possible. That way, you don’t have to worry about fraud; you can just focus on growing your business.
We also value security so much that we have a bug bounty, which means that we offer cash rewards to those who find vulnerabilities in our system.