Friday , December 6, 2024

Elevating the consumer payment experience – Setting the stage for merchant growth

Steven Velasquez, Senior Vice President and Head of Partner Business Development – U.S. Bank | Elavon

With retail sales predictions clocking in at $1.59 trillion for this year’s holiday season[i], it’s a good time to reflect on how you can support and help your merchants meet this demand while maximizing their revenue potential. Discerning, and increasingly sophisticated, shoppers expect businesses to offer their preferred payment method. In fact, 48 percent of shoppers consider payments choice an important feature for merchants to provide.[ii]

Let’s take a closer look at the market trends shaping shopping behavior. It’s no surprise that e-commerce sales have skyrocketed, but merchants must address both the online and in-store experience. Case in point: digital wallets. With the global mobile wallet market expected to reach USD 51.53 billion by 2030[iii], it’s apparent that seamless, secure, and convenient payment experiences are driving customer expectations. In-store transactions are no exception with a 33 percent increase in 2024 alone.[iv]

It’s important to note that the use cases for digital wallets, and therefore adoption, are set to increase. The seamless experience will extend to identity verification via driver’s licenses, passports, and “Know Your Customer” (KYC) data points. Not only will digital wallets impact a merchant’s sales, but it will also mitigate the risk of fraud. What’s good for the merchant is also what consumers want. More than 29 percent of global users say they would use their digital wallet for verifying identity or age in the next three years.[v]

The transaction lifecycle doesn’t stop with payment acceptance or ID verification. If we look beyond the basic payment transaction, consumers want options in how they finance their purchases. Integrating a point-of-sale lending solution API offers your merchants a valuable add-on service that improves their customers’ purchasing power and drives business growth by extending the customer relationship lifecycle. The demand is there. The embedded lending market’s estimated worth is USD 6.35 Bn in 2024 with projections reaching USD 23.31 Bn by 2031.[vi]

Bringing it all together – Partnering to maximize your partners’ revenue potential

A payments partner that can offer functionality beyond payment acceptance is crucial in a crowded market and positions your merchants for success. Offering the latest payments technology through the entire consumer experience means increased revenue potential and stickier customer relationships.

With our new digital wallet offering, Paze™, your merchants can offer consumers this peace of mind and convenience by integrating a wallet into their consumer checkout experience, removing the need for manual entry of full card numbers and giving them choice among the cards they use for online and in-store purchases.

When you’re building the blueprint for your success, it’s critical to select a proven partner that can help you build your long-term strategy. Embedding value around the payments experience is a win-win for you and your merchants. Discover what’s possible with our award-winning APIs[vii], comprehensive integrated software solutions ecosystem, and Avvance™, our point-of-sale lending solution.

Ready to learn more? Backed by the strength and stability of U.S. Bank, we offer global payment expertise, so you can focus on expanding your business capabilities and providing more value for your customers. For more information, fill out our short form to connect with us.[i] Deloitte

[ii] 2023 Pymnts.com Global Digital Shopping Index

[iii] Research and Markets

[iv] 2023 Pymnts.com Global Digital Shopping Index

[v] Pymnts Intelligence

[vi] Coherent Market Insights

[vii] 2023 API World Awards – “Best in Payments APIs”

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