The Rise of Alternative Payments

Updated: Apr 6, 2021

When we started development in 2019 on the Innervation Alternative Payments offering, aimed at giving retail clients greater choice in how they engage with their customers and provide increased convenience and choice in payments, Innervation had no idea that the pandemic would create such interest in non-touch, non-cash forms of payment.

In light of the new reality of Covid-related protocols and increased economic pressure, payments have been under intense scrutiny. In response, there has been a concerted effort to expand payment options for customers in various retail environments, with a number of alternative payment providers and new payment mechanisms coming to market.

While online shoppers have enjoyed the convenience of a vast array of payment options at checkout for a while now, in-store shoppers have had a limited choice in how they pay for goods. This, however, is changing as more alternative payment options, such as micro-credit and purpose-based lending, are being introduced in-store utilising the mobile QR code payment mechanism.

So, what can a retailer reasonably expect from implementing new alternative payment offerings as a competitive advantage?

Offering new payment options accommodates customers with alternative payment preferences such as mobile QR payments - Between January and March 2020, Masterpass processed between 240 000 and 276 000 transactions per month, growing to over 400 000 by June as the threat of the pandemic became clear.

By utilising existing payment hardware and infrastructure, such as Pin Entry Devices (PEDs) and enabling a host of alternative payment providers, retailers can unlock a new world of convenience for customers. Foreign case studies have shown a significant move to alternative payment providers, as well as a significant increase in turnover.

This new wave of alternative payment innovation is set to radically change how customers purchase goods in 2021 and beyond. For customers, this means more choice and greater convenience. For retailers, it means improved buying volumes, greater potential footfall and improved market share.

Want to know more about how to enable QR-code based mobile payments and NFC-enabled contactless payments at your till points? Contact our SALES TEAM today.