Apple Pay: there’s a lot more retail and hospitality needs to get right before taking a bite

Like most technology vendors, we’ve been eagerly awaiting the formalisation of Apple Pay’s launch in the UK – and paid particular interest to which retailers and hospitality vendors will be first to launch the service.

Boots, Dune, JD Sports and New Look are early retail adopters, while Costa, KFC, Pret A Manger, Nando’s and Wagamama are all flagship Apple Pay candidates on the hospitality side.

Of course, whilst this has novelty value at the moment, there is still a consumer adoption mountain for Apple Pay’s advocates to climb. For starters, the function is only available to Apple Watch, iPhone 6 and iPhone 6 Plus users – those devices equipped with NFC technology – so it will take time for earlier technology users to make an upgrade.

Also, the concept of mobile payments is still very young. Don’t forget, it’s only in the last 18-24 months that we’ve seen contactless take off as a convenient transaction method; and that’s using debit cards, a familiar means of paying for goods.

Speaking of contactless, this brings me to another point. The purpose of these emerging payment technologies is to make life quicker and more convenient for the consumer. Giving them the chance to use a niche payment service like Apple Pay is fair enough, but many retailers and hospitality vendors still haven’t perfected their current transactional offering.

In today’s customer-centric society, getting the basics right cannot be underestimated. Adding new payment channels puts greater strain on stores and hospitality venues – devices, data, networks, staff knowledge, customer service etc. Without a solid foundation to build on, businesses risk adding to a house of cards that could collapse at any second.

One thing we do know is that mobile commerce has increased significantly in importance over the past 12 months, so it’s likely that mobile payments will follow suit. While consumers are coming to terms with using their smartphones as a payment device, retailers and hospitality companies have a prime opportunity to refine their existing transactional technology, ahead of Apple Pay’s widespread launch further down the line.

For more payments insights visit our sister site, The Payments Network.

Welcome to the store that never sleeps

Switching off is not a concept that most consumers are familiar with. We’re trying to fit more activities, across more channels, into every single day. In fact, some would go as far as saying we’re ‘always-on’.

The Always-On Consumer was a term coined by Vivaldi Partners last year to describe the 48% of shoppers who go online multiple times each day, using an average of 3 devices and logging on from at least 3 locations, invariably engaging with retailers and brands along the way.

There are 5 types of Always-On Consumer:

Social bumblebee – extrovert, spontaneous, avid social media user

Mindful explorer – early tech adopter, minimalist, very loyal to favourite brands

Deal hunter – discount driven, listens to social media for tips

Focused problem solver – sticks to tried and tested brands, prefers store shopping

Ad blocker – ignores online ad content, mostly shops online for household staples

One thing they have in common, though, is the relentless pace with which they interact and digest information, not to mention the expectation that their needs will be met right there and then.

Because of this, it’s not just consumers that are always-on – retail stores must be too. The high technology dependence and low tolerance levels of today’s shoppers mean any interference in their offline encounters could result in defection to another, potentially more reliable brand. The store can’t ever afford to sleep on the job.

This so-called ‘interference’ could consist of a lack of goods availability, or a long queue at the checkout. Some retailers may claim these are inevitable experiences in the bricks-and-mortar environment, though, in-store technology enables store associates to smooth over such shortcomings; I’m thinking specifically of using mobile POS for queue busting and mobile clienteling.

However, these devices – and fixed POS terminals too – are all reliant on the store network, which underpins every element of the customer experience. Connecting devices is crucial to delivering seamless customer service. The disruption of store networks can cost retailers thousands in lost sales, while the damage caused to consumer relationships can be far greater, and longer lasting.

With this in mind, organisations cannot afford to rely on outmoded networks that are not optimised to cope with the multi-channel, multi-device demands that modern retail places on the store. They need a business-class network that can cope with high traffic, high pressure trading – across multiple sites in many cases.

Remember: the Always-On Consumer is an unforgiving being. Get caught napping even once, and these high spenders are likely to take their business elsewhere.