The way people shop has evolved, and so have their expectations. Today’s consumers don’t see separate channels; they see a single, unified brand. They want a frictionless journey that flows effortlessly between digital and physical touchpoints - from discovering products on social media and reading online reviews, to seeing items in-store and completing purchases via mobile apps. Delivering this cohesive experience isn’t just a competitive advantage anymore; it’s the baseline expectation.
The Role of Payments in the Customer Experience
Payments used to be a transactional necessity but now 70 percent of consumers across all generations prioritise having access to their preferred payment option when choosing where to shop. It’s a defining part of the customer experience. As the final step in the purchasing journey, the payment process shapes perceptions of your brand and influences whether customers will return. Millennials and Gen Z are especially quick to abandon purchases if their preferred payment method isn’t available.
Providing endless payment options may seem like a winning strategy, but too much choice can overwhelm customers, leading to frustration and higher abandonment rates. The smarter approach is to offer a selection of payment methods tailored to your audience, region, and industry. Above all, payments must be secure, intuitive, and seamless.
Businesses with strong omnichannel payment strategies boast an average customer retention rate of 89 percent, compared to just 33 percent for those without. Here are four strategies to unlock the full potential of omnichannel payments:
1) Payment Orchestration
Customers might not actively seek out innovative payment methods, but they’ll readily embrace them if they’re convenient and secure. Payment orchestration enables businesses to offer a variety of options while subtly guiding customers toward their preferred ways to pay, based on factors like transaction type, value, or location.
For instance, a car dealership might accept card payments for deposits but push open banking for final balances. This approach allows customers to benefit from credit card protection while helping merchants avoid high transaction fees on large purchases. Open banking or Pay by Bank, is particularly effective for high-value transactions, offering lower costs, reduced fraud risk, and a slick, streamlined experience for customers.
2) Smart Pay-by-Link Solutions
Today’s customers expect the freedom to pay how they want - whether by card, bank transfer, or digital wallet - and they demand consistency across every channel. If a customer uses Apple Pay in-store, for example, they should find the same option available online.
Pay-by-link solutions bring checkout directly to the customer, wherever and whenever it’s most convenient. For instance, after a personalised consultation, a luxury retailer can send a branded payment link via SMS, email, or messaging apps. Customers can then complete their purchase securely using their preferred method, extending the premium experience all the way to payment.
3) Social Commerce
Social media has become a powerful shopping platform, with billions of users spending hours daily browsing and buying. Millennials and Gen Z are particularly drawn to social commerce, which boasts conversion rates up to 10 times higher than traditional e-commerce.
Integrating pay-by-link features into live videos on platforms like Instagram, TikTok, and Facebook allows businesses to meet customers where they are. For example, viewers of a live product demo can make a purchase instantly via a secure link. With social commerce projected to exceed $1 trillion USD by 2028, now is the time to invest in this fast-growing channel.
4) Data Analytics and Automation
The customer journey doesn’t end at checkout. A seamless post-purchase experience, including returns and exchanges, is just as critical. Integrated systems that connect payment methods, transaction records, and inventory make processes like in-store refunds for online purchases effortless.
Data analytics and automation further enhance the payment experience. By analysing transaction histories and customer behavior, businesses can personalise interactions with saved cards, recurring payments, and tailored incentives. Predictive analytics can also address cart abandonment, using automated reminders or discounts to encourage customers to complete their purchases.
Streamlined operations build trust and foster loyalty, transforming one-time shoppers into long-term advocates.
Omnichannel payments are no longer just a convenience - they’re a cornerstone of modern commerce. By orchestrating payment journeys, leveraging smart pay-by-link solutions, embracing social commerce, and harnessing data-driven insights, businesses can unlock the potential and competitive advantage of omnichannel payments.
