However, the payment experience – albeit central to the journey – has long been neglected, with retailers generally choosing to outsource the responsibility to banks, largely due to its complexity. While making payments may seem run-of-the-mill and seamless to many customers, complexity arises as shopping channels, technology, issues with types of payment, and consumer preferences evolve rapidly.
Retailers are beginning to develop strategies around integrating payments into their value proposition. While some still see payment as a process to be optimized from a technical and cost standpoint, implementing the right payments strategy is an opportunity for retailers to gain a real strategic advantage.
Payment is a crucial and largely untapped opportunity for retailers to increase revenues and improve profitability
EXHIBIT: Getting payments right boosts sales and loyalty
Source: Oliver Wyman analysis, Morgan Stanley Research