Anticipated Developments in Merchant Services for the Year 2021:
In the current economic climate, personal consumption is projected to grow, yet household income may see a decline, according to the Mercator Advisory Group's Viewpoint: 2021 Outlook: Merchant Services. This episode, which delves into the strategies that proactive merchants and their partners can employ to boost their chances of success, offers valuable insights into the evolving retail landscape.
One of the key trends emerging from the report is the continued shift towards digital shopping habits. As more consumers opt for online purchases, in-store traffic is expected to dwindle compared to online sales. This trend is further accentuated by the pandemic-induced transformation of Main Streets and malls into empty storefronts and silent restaurants.
Essential retailers have managed to thrive during these challenging times, largely due to their swift pivot to e-commerce. In 2021, merchants will continue to prioritise digital engagement with their customers, recognising its potential to drive growth and retain customers.
The report also highlights the importance of digital ordering, payment, and fulfilment in the post-pandemic era. Big box stores and groceries, which have successfully navigated the e-commerce waters, are poised to dominate retail with end-to-end resources from order to fulfilment.
While the report does not provide specific data about the expected changes in shopping habits beyond a continued shift towards digital and a decrease in in-store traffic, it is clear that the retail industry is undergoing a significant digital transformation.
Innovation is at the forefront of this transformation, with the adoption of digital and contactless payment solutions, integration of payment platforms with business management tools, expansion of omnichannel payment solutions, and rising adoption of alternative payment methods such as mobile wallets, buy now pay later, and cryptocurrencies.
Security and fraud prevention are also key concerns, given the surge in online transactions. Continued innovation in payment technologies, including POS hardware, APIs, and embedded finance services, is expected to address these challenges.
However, the report does not discuss the impact of the pandemic on household income beyond indicating a potential decline. Furthermore, it does not provide information about the expected growth or decline in specific industries beyond grocery and big box stores.
The pandemic has accelerated the pace of online sales growth by approximately five years, and it is expected to continue impacting the merchant landscape, causing struggles for brick-and-mortar stores, particularly legacy department stores.
For a more detailed analysis of the predictions and strategies offered by Mercator Advisory Group in their 2021 merchant services outlook, access to their official report through their subscription service or industry database may be necessary.
- In the evolving retail landscape, merchants will prioritize digital engagement with customers, appreciating its potential to foster growth and retain customers, especially as technology drives the shift towards online shopping.
- As the retail industry undergoes a significant digital transformation, innovation will play a crucial role, encompassing the adoption of digital and contactless payment solutions, integration of payment platforms with business management tools, expansion of omnichannel payment solutions, and the growing acceptance of alternative payment methods like mobile wallets, buy now pay later, and cryptocurrencies.
