illustration helping to understand digital payments

Evolutions and trends of payments

Just 10 years ago, payment was not a strategic issue for e-commerce and even less so for the hospitality industry. With the arrival of a new service model pushed by multinational companies such as Uber or  Amazon, a new trend based almost exclusively on digital has emerged. This new operation of online  services has required the development of new technologies to make the customer’s experience more  fluid throughout its journey. Here we are facing a sustainable evolution of our consumption model.  These major players, who have enabled us to get what we want in just one click, have profoundly  changed our purchasing habits.  

In addition to all these technological advances, there are regulations that are stated at the European  level and applicable in all the countries that make up the economic coalition. These standards aim to  protect the consumer but also the professional. Indeed, the emergence of digital payment also brings  its share of risks related to online transactions. These new security standards, requested by the  European Union or card scheme publishers such as Visa and MasterCard, aim to protect customers’  personal data (RGPD), their bank card data (PCI-DSS) and to prevent online payment fraud (3DS or DSP2)  as much as possible.  

Fraud protection is as important for the consumer as it is for the professional. Thanks to the double  authentication (Strong Customer Authentication – SCA), the customer ensures that his payment is  secure, and the professional will receive the funds due to him. The PSD2 standard (Payment Services  Directive) came into force on January 1, 2021. It is the evolution of 3DS security that we are already  applying today. During an online payment, it is a question of authenticating that the cardholder is  indeed the author of the transaction via an SMS code for example. The evolution brought by the PSD2  standard is a double authentication via the smartphone: SMS code + validation on the banking  application or facial recognition or fingerprint. 

Customer centricity 

What gives online payment its strategic interest, for any e-commerce or hospitality business, is that  consumers are always on the lookout for the latest technological trends in the sector and want to vary  their means of payment. The customer adapts quickly, the professional must adapt even faster! The  customer experience has become paramount at every stage of the purchasing process, of which  payment is a part. The transaction must be as fluid and smooth as possible. It must give the feeling that  the payment is not an effort or even almost make the customer forget about it.  

This new consumer trend and purchasing process is part of the long term and brings with it a whole  range of technological upheavals. Online consumption now requires a digitalized and dematerialized  payment via a secure payment link. The time of payments done through physical payment terminals is  almost over. The sanitary situation is further accelerating this “contactless” approach. The economic  and social situation requires professionals to change and adapt their methods. The aim here is to  respond to the new needs of consumers, which also requires adapted payment solutions. 

An improvement in online payment services allows a better rate of adoption by customers. If the  professional succeeds in adapting his payment solution to make it faster and more fluid, he improves  the entire customer experience, as well as his brand image. On the other hand, a purchasing experience  that encounters incidents or complexity of use is likely to lead to abandonment and thus the loss of a  customer. Furthermore, consumer mobility requires the ability to make payments on a variety of  different tools, especially on a smartphone. This new technological tool ensures the continuity of the  online service such as “fast check-out”. 

Benefits for professionals 

Online payment fraud causes on average 5% loss on a company’s total revenue. The risks of online  payment therefore affect the merchant just as much. It is important to ensure security while keeping  the flexibility of this service for each party. The adoption of an online payment platform allows the  transfer of funds from one account to another to be fast and secure. Also, the authentication of the  cardholder allows the professional to ensure that he receives the funds due to him (3DS and DSP2). 

The fight against online transaction fraud begins with the collection of credit card data via a secure  payment link. This reassures the customer and saves the professional from a risky and time-consuming  remote payment protocol. Then, the tokenization of bank card data authorizes the storage of card data  in a “digital safe” accessible only via a secure code (PCI-DSS). Once the card is stored and secured, the  professional no longer needs to ask the customer for payment information again. The professional is  thus spared an additional manual task and can devote more time to the quality of service for his  customer. 

These benefits related to the new payment methods and more particularly to online payment will make  the professional’s task easier. This fluidity resonates for the customer but also for the merchant in his  daily work. If we take the example of a hotel establishment, the reception team will save time in  managing reservations and their payment. This time can be devoted to a more personalized reception  function and thus promote customer adoption and loyalty. Finally, the integration of a payment solution  into the tools or the merchant website is the culmination of this new technological trend in online  payment.  

Maëlle Briot – Key Accounts Manager – SysPay

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