Payment methods aren’t the same as ten, even five years ago. Digital payments took center stage in 2022, without popularity only expected to grow going into 2023. In fact, digital payment use increased to 89% in 2022, with the forms of digital payments offered growing from 51% to 62%.
Understanding the different digital payment trends you can expect to see going into 2023 will help you position your business for success and properly meet changing consumer demands.
Payment gateways give your business the ability to accept credit and debit card payments from customers. This is the technology that facilitates most online sales. Payment gateways are going to increase in popularity as ecommerce continues to grow and customers are looking for safe and reliable ways to make purchases.
Payment gateways act as the middleman between consumers and businesses, simplifying the entire experience for customers and allowing businesses to collect funds quicker. Most types of payment gateways follow PCI-DSS compliance standards to ensure the safety of sensitive information. If your payment gateway isn’t at peak performance, it may be time to transition to a new provider like exactly.com.
The pandemic sparked a rise in contactless payments, such as digital wallets and payment apps. This digital payment method provides users with convenience, speed, and easy accessibility, making it a trend to watch out for in 2023.
If your business isn’t already offering consumers contactless payment methods, you may be missing the mark, especially amongst a younger crowd. Apps like Apple Pay, Venmo, and Cashapp are becoming widespread, calling on the need to integrate this digital payment option into your business.
Buy Now, Pay Later (BNPL)
2023 will also see an uptick in Buy Now, Pay Later (BNPL). This is a type of short-term financing that allows customers to purchase and receive goods, but spread payments out over a defined timeframe. This works similar to an installment loan, but without the tedious application process.
Depending on the products or service your business sells, you may want to offer BNPL. These digital payments are often facilitated by an outside third party, minimizing risks in your business while still making the sale.
Variable Recurring Payments
An increase in open banking demand has led to new digital payment methods, one of which is variable recurring payments. VRPs use the permissions found in open banking to facilitate a transaction on behalf of a customer to an authorized payment provider.
VRPs are considered a better option compared to direct debits because they follow predefined arrangements. In addition, payments can be instant, reducing lag times and giving your business access to funds quicker.
VRPs might be something to consider offering going into 2023. You may need to partner with a financial institution or other provider that offers open banking before you adopt this digital payment method. However, offering VRPs can give your business a competitive edge and generate more value for your customers.
Are you currently offering these four digital payment options? If not, it may be time to reconsider your payment options to appeal to a wider customer base and promote cash flow. One way you can do this is by optimizing your payment gateway with exactly.
Our system allows you to streamline technologies, leverage flexible management, and benefit from various reporting solutions. Reach out to a team member today to go over how exactly can position your business for digital payment success going into 2023.