Digitisation is changing even most mundane things, like paying for things. Cash is almost a relic, while digital payments are multiplying and spreading. At the top is PayPal. Ever since the launch of Google Pay and Apple Pay in Germany, the enthusiasm for mobile payments is continuing to increase as the smartphone becomes the wallet of the future.
There’s no doubt that the way we’re paying for things is changing. Retailers have to act on this, especially if the complexity increases and the requirements as well. What should retailers, manufacturers, and brands in the DACH region pay attention to in order to best meet customer requirements and what does the future look like for payments?
Contactless payment with a smartphone, without use monetary notes, coins, or cards are the way of the future. But this isn’t anything new for many countries already. Forms of mobile payment have long been established and analogue forms of payment money a distant past. Compared to China or the USA, Germany is so old-fashioned in this aspect. On one side there Google and Apple and on the other the traditional German banks. Both want to change the way people in Germany pay for things every day.
But German customers and businesses don’t just change their ways because of “innovative” ways of doing things – even if analysts say a potential for change is very high.
China is booming in every way. The Chinese e-commerce market is the largest in the world and one of the most innovative. The Middle Kingdom is a role model in terms of internationalisation. For brands and retailers who want to continue to grow, China holds the opportunities par excellence. At the same time, Chinese consumers are strongly attracted to foreign brands and products. This enthusiasm is particularly easy to attract even when travelling.
Even when travelling Chinese people like to learn about the mobile Internet. The growing number of Chinese tourists in Europe makes it attractive for retailers and brands to adapt to the mobile preference of their potential customers. What strategies should they pursue in order to pick up the digitally affine consumers from the Middle Kingdom?
I type “Yapital” in my browser, the homepage is loading and, at first glance, my eyes look upon the following line: “Unfortunately we must inform you that Yapital is going to stop operating its cross-channel payments on the 31.01.2016”.
I still remember the day when Otto launched Yapital, the first European cashless cross-channel payment system. We were all looking forward to it because it was as if we were living through the beginning of a new era for E-Commerce. However, 2 years later, all hopes and expectations have been up in the air. Perhaps it was too early?
Amazon is often the non plus ultra in e-commerce, regardless of the area. But in the field of payment gateways, the Etail company recently had to concede a bitter defeat. In general, the struggle in the payment market is hard, and in Germany it is fuelled by the imminent revolution in the mobile payment sector.
In 2013 mobile brought both eBay and PayPal more turn-over than expected. Rather than 20 billion, eBay generated 22 billion US and PayPal made it to 27, rather than 20 billion. So far so good, but it could be better.
Investments in mobile and stationary trade are developing sluggishly and are becoming a milestone around the neck of fast growing company PayPal. After eBay successfully realigned itself with a focus on mobile three years ago, it was thought that the company’s future would lie here.