The past few years have brought about transformations in how business is done across the UK, and payment processes are one of those aspects that had to adapt to new changes. Local businesses all over the country are starting to turn to innovation and technological solutions to meet customer demand.

The entrepreneurial spirit of the people of Mansfield continues to shine. The Mansfield District Council reported an increase in the number of startups in the area by 578 in 2020. The decline in cash payments signals the evolution of digital payment transactions across the country, so new businesses in Mansfield can benefit from adopting new payment methods. By doing this, it allows them to build resilience in the face of globalisation and digitalisation.

To provide your customers with a seamless and frictionless shopping experience, here are three payment trends your business should take note of this year:

Open banking

Open banking is a way for consumers and small and medium-sized enterprises (SMEs) to share their bank transaction data with trusted third parties. These third parties provide applications and services which allow both parties to save time and money as they complete their payments. Open banking enables consumers and SMEs such as retail shops to initiate payments directly from their bank accounts to their payee’s bank accounts without using cards.

Consumers nowadays have multiple sources of payments as part of their financial and income management. Businesses that have tapped open banking can help their customers manage their finances better and aggregate their spending data. Businesses in Mansfield should take advantage of the secure remote access open banking provides, as local banks in the area typically close at 5pm and are often located in just the central commerce district. Open banking means that no matter what bank your customers use, payments can be instantly credited to your business account. It likewise provides businesses with a wide range of providers who can help plan out your operations, from borrowing to cash flow planning.

Contactless payments

Shoppers have demanded and are now embracing next-generation, non-cash payments to complete their day-to-day financial affairs. Although digital wallets and QR codes are some of the newer ways to proceed with contactless payments, debit and credit cards remain the most popular method among local consumers. Even Mansfield District Council highlights the speed and convenience debit and credit cards provide as a method for paying council bills.

The Guardian reports that the number of cash payments fell by 35% percent in 2020, with five in six payments involving no notes or coins. This means that businesses, no matter how small, should be equipped with a portable card reader that can be accessed by Bluetooth or Wi-Fi and only requires an internet connection. An excellent mobile reader should accept a variety of contactless payment methods, such as Apple Pay, Android Pay, and Samsung Pay, as well as credit and debit cards. Restaurants, cafes, and pubs should take note of this payment trend, which is an ideal way for customers to remain in their places as they complete their transactions conveniently.

Buy Now, Pay Later

Buy now, pay later (BNPL) is a type of instalment loan or short-term financing that allows customers to purchase an item and pay for them at a future date. This payment scheme can increase local spending while building trust between local merchants and consumers. BNPL usually works by giving the customer this option at checkout and granting immediate approval as long as they make a down payment, typically 25% of the total purchase amount. The remainder is then paid in a series of instalments.

Businesses such as furniture and electronics stores should pay attention to this trend because it can make their shops more attractive to customers who prefer this type of payment. Even large retail banks in the UK like NatWest have made plans to enter the BNPL market, enabling their clients to split their purchases into several repayments. By offering BNPL, your customers can complete the checkout even if they are still waiting for this month’s paycheck. It also encourages customers to purchase higher-value goods, as they can spread out the cost of the item over time.

As the UK enters a new era of payments, Mansfield will eventually have to keep up. Businesses that innovate and adapt these payment trends can undoubtedly rise above the competition and make payment transactions accessible and convenient for their customers.