Exciting Trends in Payments and Their Value to Merchants

The evolution of payments has created many opportunities for increased convenience and greater access. Omni-channel solutions can now form a coherent experience for consumers with more insight for merchants. At IBM, we are again at the forefront of creating access to these opportunities and reducing the complexity for our clients with our Store Engagement solution as well as our recently launched white-label payments solution, IBM Pay. I’m also seeing trends in payments that I’ll cover here.

Imagine being able to know your customers’ preferences better and to offer personalized rewards at check out, all without the need for the customer to use plastic cards or phone numbers, and without standing in line. Increasing customer satisfaction without adding new hardware to accept different forms of payments, and being able to influence what payments method customers use.

So, what do we believe to be the most important and exciting trends in payments? We identified three areas with great potential to create value for our clients in which IBM can leverage its long history in payment innovations.

  • Digital Commerce Payments: It has become standard for merchants and retailers to allow customers to buy goods and services online. But the progress in eCommerce and the ever-increasing number of people that make their purchases online shows the potential for a differentiated product in this area.
  • Software-initiated Payments: Subscription models used by many services and the app economy have established another area of opportunity for payments. The payment process disappears in the background. More and more consumers demand a similarly convenient payment experience. And merchants and retailers can create revenue opportunities over the life of the customer interaction when having cards on file.
  • Closed Loop Payments: Finally, there is value in enabling merchants to control the funding source and offer integrated rewards at check out. This allows merchants to accept more payment methods and steer their use at the same time.

With recently launched IBM Pay and Store Engagement, IBM addresses this complexity and allows for a brand-controlled experience throughout the checkout process, be it in store, online or mobile.

Alberto Jimenez will deliver a keynote presentation on the Future of Payments at the MPE Conference in Berlin (February 14 – 16) which will illustrate how that integrated experience can look for consumers, merchants and retailers.

Share this post:

Share on LinkedIn

More Payments Stories

Grow Your Holiday Sales in 2015: Offer Your Customers More Ways to Pay

As we put Halloween behind us and turn our focus fully toward the holiday shopping season this year, I am excited that it’s time for reporting on many retail activities. You may have heard of our announcement last week of IBM Watson Trend. IBM Watson Trend expands on IBM Benchmark, the industry’s go-to source for […]

Observations from NACHA PAYMENTS 2016

I spent last week in the Valley of the Sun attending the annual NACHA PAYMENTS conference. While it was a great excuse to enjoy some time in the beautiful Phoenix weather, it was also an opportunity to learn more about what is top of mind for banking payment professionals. This year’s prevailing theme was payment […]

IBM and SWIFT Modernization

Banks around the world deal with many different currencies, transaction types, clearing and settlement mechanisms. Financial transaction processing has involved into complex systems that are often spread across multiple platforms. Originally developed in the 1970s, IBM MERVA for SWIFT message handling continues to be used by many large financial organizations to extend financial message processing. […]