As digital payments dominate consumer preferences, retailers are under pressure to adapt. The shift demands significant investments in modernising legacy systems, ensuring data security, and addressing privacy concerns. Despite the hurdles, retailers recognise that payment innovation is key to staying competitive.
With three in five retailers actively upgrading their payment infrastructure and introducing new options, the industry is embracing change. However, the complexity of integrating modern systems poses challenges. According to KPMG, implementation costs remain the most significant barrier, with nearly two-thirds of retailers struggling with the financial burden. Additionally, over half report difficulties in training staff to transition from outdated systems.
Consumer behaviour is also a driving force behind these changes. Younger generations, particularly Gen Z, prefer mobile wallets and contactless payments over traditional cash or credit cards. Despite their love for in-store shopping, their payment habits lean digital. To meet these evolving expectations, three-fifths of retailers have already launched or plan to introduce a dedicated app to streamline transactions.
Frictionless payments offer undeniable advantages. They speed up transactions, enhance security, and boost customer satisfaction. However, they also present new privacy risks. As payment systems become more integrated, bad actors can exploit consumer data for unauthorised transactions. Retailers must strike a balance between seamless experiences and robust security measures to maintain trust in the digital economy.
itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors. Itim adds retail value by helping multi-channel retailers optimise their business and their stores to improve financial performance and compete more effectively with the “Amazons”.
