Retail-Tech Landscape: Frictionless Payment

Payment methods that reduce friction at the point of sale improve the customer experience—and digital technologies are becoming integral to frictionless checkout. Coresight Research has identified a digital payments boom as one of our key global trends for retail in 2021: We expect global transactions using digital wallets to grow by over 10% this year. Driving factors behind the expansion of mobile and digital payments include improved speed and efficiency of payment technologies, as well as advances in data security.

We have also seen a recent shift in consumer preferences for contactless shopping and checkout due to heightened concerns over hygiene and safety amid the Covid-19 pandemic. We expect this shift to extend beyond the end of the pandemic as consumers continue to seek convenience and more retailers are equipped to facilitate digital payments.

This Retail-Tech Landscape comprises selected startups globally that can help retailers improve how they receive payments and thus enhance the overall customer experience. We have identified 40 startups across the following categories:

• Buy now, pay later
• Fraud prevention
• Payment processing
• Point of sale (POS)
• Self-checkout

Key Trends in the Payments Sector

Below, we highlight two key industry trends in the payments sector.

1. Covid-19 has altered consumer payment preferences.

An increasing number of shoppers are using digital payment methods. We expect digital payment to continue to see strong growth in 2021 as more consumers get connected and comfortable with the digital payments ecosystem. A Coresight Research consumer survey undertaken on February 1, 2021 found that one in 10 US consumers expect to use contactless payments in stores more often after the pandemic crisis eases.

2. Retailers are focused on combating fraud.

E-commerce has accelerated amid the pandemic, increasing the need for retailers to minimize the risk of digital fraud via unauthorized transactions, transfer scams and false credit-card chargebacks. Combating fraud is among the topmost priorities for retailers: According to a survey that Forrester conducted for the National Retail Federation in June 2020, 41% of US retailers said that combating fraud is among their top three payment-related initiatives over the next 12 months.

Retail-Tech Landscape: Frictionless Payment—Infographic

 

Retail-Tech Landscape: Frictionless Payment, by Category

Buy Now, Pay Later: Companies enabling shoppers to make purchases and pay later in installments

[wpdatatable id=814]  

Fraud Prevention: Companies assisting in identifying fraudulent transactions

[wpdatatable id=815]  

Payment Processing: Companies offering payment-processing solutions

[wpdatatable id=816]  

Point of Sale (POS): Software and hardware providers allowing businesses to receive payments

[wpdatatable id=817]  

Self-Checkout: Technology providers enabling cashierless checkout

[wpdatatable id=818]