The way consumers can pay for goods has dramatically changed over time. From bartering, to cash, to checks, to debit cards, all these shifts had one thing in common: More convenience and reduced friction.
Well, what are consumers doing now?
According to an article on Entrepreneur.com, consumers are increasingly choosing mobile payment. Which makes complete sense since 71 percent of all time spent online is via a mobile device. And, according to Google, over 50 percent of all search queries are initiated via a mobile device. In fact, the data in the article suggests that in-store mobile payments will reach $503 billion and mobile wallets are expected to surpass the use of both credit and debit cards by 2020. That’s only two years away. This shift is happening now!
Today’s smartphones have increased security measures with biometric locks such as fingerprint and face scans now trumping passwords or pin numbers. Because of this, consumers increasingly trust their phones to store sensitive information. Apple, Android and Samsung have all integrated mobile wallets, as have many retailers, allowing customers to pay for purchases without ever taking out their wallets.
We may end up in a future where wallets no longer exist. The easier you make it for a customer to give you their money, the more of it you’ll end up getting – and much faster. Mobile wallets now go far beyond point-of-sale as payments are moving away from POS and into smartphones via the cloud.
Doesn’t it make sense to let a customer give you their money before they get to your store? Our progressive dealers receive as much as 28% of customer payments over mobile, prior to picking up their vehicle. Starbucks and many other retailers already allow this form of payment as it saves time and offers the ultimate in convenience for today’s busy customers. You can even do all your grocery shopping online, pay online and just drive to the store where it is ready and waiting for you. Their staff will even load it into your vehicle!
To make it easy and convenient for customers is why these retailers have implemented online payment programs. Customers want to save time, not spend more of it. But they are willing to do the opposite – spend more money to save more time.
What are you doing to take advantage of this trend in your dealership?
Author: Ujj Nath
Ujj Nath is the Founder and CEO of myKaarma (www.mykaarma.com), the cloud-based conversational commerce software that’s revolutionizing the auto service industry. He has 25 years of experience as an entrepreneur and automotive industry executive. In 1990, prior to myKaarma, Ujj founded Syncata, a major provider of business consulting and systems integration services. In 2004 he successfully negotiated the sale of the company to ProQuest Business Solutions (NYSE: PQE), which was subsequently acquired by Snap-On Tools (NYSE:SNA). At Snap-On, Ujj was Vice President of Global Accounts and headed the Professional Services Organization for Snap-on Business Solutions. He can be reached at firstname.lastname@example.org.