• Ray Shinzawa, Managing Director at JCB International (Europe) Ltd.


• 15.11.2024 04:00 am
#GlobalShoppers #DigitalPayments

Since the dawn of commerce, buyers and sellers have sought a smooth shopping experience. The digital age has made this more possible than ever, setting the standard for frictionless payments. As the tourism industry recovers recently, merchants catering to international tourists must adapt quickly to meet their expectations or risk falling behind. In an era when convenience reigns, customers will not hesitate to switch to competitors who offer a smoother and more familiar payment process. 

Changing customer expectations

Seamless transactions positively influence purchasing decisions. Consumers do not want a frustrating obstacle course of forms and repetitive data entry. They want speed and simplicity. For merchants, that means understanding their needs, preferences and nuances which can depend on their demographic and location. 

Millennials and Gen Z - soon to represent the majority of the global workforce - are leading the demand for quick and easy digital experiences, including payments. Failure to meeting these expectations risks lost sales, as many refuse to endure hurdles like mandatory account creation. Regional preferences also play a key role. 65% of APAC consumers, for instance, are willing to pay a premium to ensure a better payment process. Match customer needs and you can unlock loyalty that drives growth in a competitive market.

Frictionless payments: The key to capturing tourist spending

The tourism industry faces unique challenges to provide this seamless payment experience including potential language barriers and unfamiliar payment systems for visitors. Europe's tourism industry has bounced back stronger than ever, with a 6.3% increase in foreign arrivals vs. 2019. The return of Asian travellers, particularly from China, will boost these figures further. Given their reputation for high spending habits as tourists, this is a significant opportunity for European merchants - especially those in iconic luxury shopping destinations like Paris and Milan. 

Merchants should have prepared for this influx of arrivals by now. Offering mobile and contactless payment options is essential to eliminate pain points and the aim should be to give tourists the similar experience they are used to at home. That means leveraging solutions to create a frictionless customer experience such as offering a checkout process in their preferred card payment scheme.

Fostering loyalty across borders through omnichannel shopping experiences

In an age of globalization, customer loyalty is built through integrated shopping experiences across channels and borders. Enabling people to pay across all platforms creates a cohesive experience that transcends a one-time purchase - from online purchases pre-trip and in-store shopping during their visit, to buying items through the app after their trip. 

Imagine a tourist exploring Paris, visiting gourmet stalls, stylish boutiques and trendy concept stores along the Champs-Élysées. Integrating familiar and convenient payment options allows them to continue their shopping journey once they leave the store. Whether that is buying additional items online after leaving Paris or browsing the app for new collections from anywhere in the world. This continuity strengthens the bond between brand and customer, encouraging repeat purchases and long-term loyalty.

Building a frictionless payment experience: A roadmap for success

Now that we understand the driving forces behind the demand for seamless transactions, let's explore how businesses can create a frictionless payment journey that meets current expectations and adapts to future evolution.

While every business is unique, several key components contribute to a successful frictionless payment strategy:

1. Seamless Integration: Integrate your payment system with other business operations, such as your customer relationships management system to personalise the customer experience. Leverage data like purchase history and payment preferences to streamline transactions.

2. Diverse Payment Options: Do not assume what is popular in your local market is the same elsewhere. Offer a variety of payment methods to cater to diverse customer preferences, especially when serving a global audience. Consider regional differences in card issuer dominance, make sure contactless payment adoption, and mobile wallet usage are available for all payment types.

3. Transparent Communication: Provide clear and concise pricing and payment information throughout the customer journey to build trust and minimise frustration. Transparency fosters confidence and reduces the risk of cart abandonment.

4. Streamlined Checkout: Minimise the number of steps in the checkout process to create a fast and efficient experience. Implement features like autofill forms and streamlined identification processes to eliminate unnecessary hurdles.

5. Omnichannel Shopping Experience: Integrate payment options across online, in-store and mobile app platforms, so as to create a unified shopping journey for international travellers, enhancing customer satisfaction and fostering long-term loyalty beyond borders.

As consumer expectations evolve, businesses must prioritise seamless payment experiences to remain competitive. This is particularly crucial in capturing the lucrative tourism market - where Asian travellers present a significant growth opportunity given their high spending power and preference for card payments. By understanding and adapting to these evolving trends, businesses can unlock new revenue streams, cultivate customer loyalty and thrive in the increasingly dynamic global marketplace.