Payment Trends in 2019 | Part 1
Our first TWO PART blog! Why two parts? Because there is a lot of great information on the payment industry and a lot of changes that will be happening in 2019. Let’s dive in.
Back in 2017, we wrote about payment technology changes in the industry. It was then predicted that by 2020 we would see a 12% decrease in cash, and 18% of consumers would use digital currencies. What we have seen in the industry is certainly gaining ground on those numbers. Cash is going away, and digital is here to stay. The ever growing trend of living in a digital oasis is certainly growing, and we believe there is a lot to be said for keeping up with the times. Here are the latest payment trends to look out for in 2019 and beyond.
THE EXPERIENCES WILL INCREASE
The last several years have blown up as far as app usage and the capability to purchase items from anywhere, then show up to redeem your purchase. Target, Panera, and McDonalds have all jumped on board with this trend. You can now tell Siri or Alexa to add items to your Amazon account and approve a payment simply with your voice. Imagine telling Siri or Alexa to pay your bills. The idea of a completely seamless payment makes it so customers don’t even have to think about the process of paying for their services. Why put friction in a process when you can make it completely frictionless?
BUSINESS ACCOUNTS AND FLEET ACCOUNTS WILL TRANSITION TO DIGITAL
B2B payments account for $38 trillion, which are still traditionally made by paper checks. The problem this creates for some business owners can be really frustrating. Slower time to payment, lost invoices, costs of postage, paper, and printing. Talk about friction! The car wash industry especially sees some of these issues arising. However, in more recent times, the switch to digital is taking off. Many believe that 2019 will be the year that B2B digital billing will be revolutionized and adopted across many different platforms. What does this mean for a car wash operator? A lot. Stay tuned for some more information on how this specific trend can mean huge opportunity for your wash.
TECHNOLOGY WILL BRING IN THE NEWCOMERS
Generation Z is on the rise. While they are just teens and young adults right now, they will make up 40% of the consumer population by 2020. This young group doesn’t know of a time before Google, Apple, Facebook, Instagram, Amazon, etc. Not only that, they have a huge influence on their own generation around them, as well as the generations before them. I can’t lie, if my 13 year old daughter tells me something is cool, I’m quick to download the app, or research whatever it is she says. Why? Because she is way more in tune with what’s “cool” than I am. This group will be the lead in whatever technology changes happen in the future. They are the ones who will be building the experiences through app based technology. When it comes to purchasing a car wash, those who have an incredible app experience over a card or cash based experience will win.
Payment trends are definitely a big topic. So big we had to break it into two blogs. Check back next month for more trends to watch for in 2019!