How omnichannel payments benefit businesses

 

Omnichannel payments may sound like a buzzword, but it's becoming increasingly important to offer consumers the ability to connect their online and in-person shopping experiences. Consumers spend more time online than ever before; more than 90% of Canadians have access to high-speed Internet, and one quarter of Canadians spend 20 hours per week using the Internet for general purposes.

So what exactly are omnichannel payments, and how do you find the right payment provider? Here’s what you need to know to achieve success across different channels.

 

What are omnichannel payments?

Omnichannel payments are an integrated payment solution that allows customers to seamlessly make payments through multiple channels, including online, in-store, and at events. Take, for example, a coffee shop where customers can order and pay for their drinks both in-store and through a mobile app.

While omnichannel payments involve offering multiple payment options, they differ from multichannel payments in several key areas. Businesses that offer multichannel payments allow consumers to pay with multiple payment methods, such as credit card and debit card, digital wallet, and buy now, pay later (BNPL).

Businesses that offer omnichannel payments, on the other hand, support payment options that work together both online and in person. For example, imagine a customer trying on dresses at their favourite clothing store. A staff member helps them choose the perfect shoes, but the store doesn't have the right size in stock. The clerk uses a handheld device to order the correct size from their online store, ship the shoes to the customer's home, and accept payment all at once. That’s the power of omnichannel payments.

 

 

Omnichannel payment examples

Omnichannel payment systems provide customers with multiple payment options, including:

• In-person payments
  
  • Credit cards
  • Debit cards
  • Mobile wallet

• Online payments
  
  • Credit cards
  • Debit cards
  • Automatic funds transfer (AFT)
  • Electronic funds transfer (EFT)
  • Mobile wallet
  • In-app or in-browser payments

The true power of omnichannel payments is how all those methods can work together. A simple example is a parking meter that accepts payment in coins at the meter or through an online portal accessed via a QR code.

In-store scanning systems are another excellent example of omnichannel payments in action. Using their phones, customers at certain stores can use a mobile app to scan items as they shop. Once they complete their shopping, they can check out through the app, avoiding long lines at the register. Many store apps offer additional features like online ordering for home delivery or in-store pickup, allowing customers to switch between channels seamlessly.

 

Omnichannel customer journey examples

Omnichannel payments facilitate several different customer journeys across multiple channels and at different touchpoints before, during, and after shopping. These journeys include:

• Buy online, pick up in-store
  The customer completes their purchase online and picks up their order in-store.
• Reserve online, pay and pick up in-store
  The customer reserves a product online and then pays for and picks it up in-store.
• Scan and pay (also called scan to pay)
  The customer scans a QR code to complete a payment without the need to enter merchant details.
• Buy in app during visit
  The customer orders an in-stock item via the merchant’s mobile app while in-store.
• Pay by link
  The customer pays by clicking a link sent via email or text.
• Endless aisle
  The customer can purchase from a merchant’s entire inventory — via a tablet or kiosk, for instance — while viewing a smaller sample of products in-store.
• Delivery subscription
  The customer provides their payment information online or in-store and agrees to recurring deliveries.
• Buy online, return in-store
  The customer returns an online purchase in-store.

 

How omnichannel payments benefit customers and businesses

Omnichannel payments are all about convenience — for both customers and companies. Forcing customers to switch between multiple apps during the purchase process creates friction, which can reduce conversions. By streamlining the payment process with omnichannel payments, companies can improve the customer experience in a simple but effective way.

Omnichannel payments do more than improve the bottom line. Let's explore the benefits in more detail.

• Better customer engagement
  Omnichannel payments make it easier to offer personalization across channels. A customer who makes an in-store purchase, for example, can receive related product suggestions while shopping online.
• Increased customer loyalty
  By allowing customers to seamlessly transition between online and offline channels, businesses provide a smoother purchasing experience, which can increase customer loyalty.
• Lower customer churn
  With omnichannel payments, customers can easily order online while in-store if they can’t find the specific item they’re looking for. Plus, they can continue a digital shopping experience on a different device once they’re home. By decreasing friction in the payment process, businesses can reduce the likelihood of losing sales to a competitor.
• Better customer data
  By connecting online and in-person purchases, businesses gain deeper insight into their customers’ preferences. They can use this data to improve marketing and personalization efforts.

 

 

Are omnichannel payments right for your business?

An omnichannel payment strategy is a smart choice for businesses that offer online and offline sales. By taking strategic steps to improve the customer experience, businesses increase their chances for conversion and brand loyalty — an especially important factor for businesses looking to compete with well-known brands.

Imagine a clothing brand with both online and brick-and-mortar locations. A customer visits the store's website on their computer and adds several items to their digital cart. Before they complete the purchase, they realize they need to head to work. With an omnichannel payment strategy, the customer can seamlessly transition from the desktop browsing session to the mobile shopping experience without needing to abandon the purchase. Once at the office, the customer logs in to their account from their smartphone to find the items they added to their cart synced and ready for checkout. The customer continues their shopping experience, then selects their preferred payment method and finalizes the transaction.

Customers are already enjoying these types of experiences with many of their favourite brands, and smaller businesses can offer the same experience. With smooth transitions between devices and locations, you can expect cart abandonment to decrease and customer satisfaction to increase.

 

 

Choosing an omnichannel payment solution

Selecting the right omnichannel payment solutions is the key to building a successful program. So what features and factors should you consider when comparing prospective payment processing partners?

• Support for the right channels
  The right solution must support and connect the channels your customers use. Depending on your needs, you may look for a provider that can integrate mobile apps, in-store shopping, BNPL, social media, and more.
• Reliability
  Trustworthiness is crucial to maintaining customer trust and preventing disruptions. Choose a partner with a track record of secure payment processing, minimal downtime, and consistent transaction speeds.
• Scalability
  As your business grows, you need a payments partner who can scale its services accordingly. Scalability includes accommodating increased transaction volumes, expanding into new markets, and supporting additional features or integrations.

 

Adopting an omnichannel payments program

Building an omnichannel payment program is ideal for businesses looking to improve the customer experience and customer engagement while reducing churn. The key to competing in today's digital world is choosing the right omnichannel payment processing partner to fit your business needs today and as you grow.