An omnichannel payments system integrates multiple payment methods and channels, providing a seamless customer experience. Various types of payment channels are included, such as mobile applications, brick-and-mortar stores, social media, kiosks, and online stores. They store the customers’ payment history and shopping preferences. When the customers get a unified and flexible experience, they can easily switch between different channels. The system plays a key role in enhancing the customers’ shopping experience. According to a study, businesses that offer omnichannel payment solutions experience a 67% higher customer lifetime value.
But how does an omnichannel payment system work? What are its various touchpoints? What advantages does it offer? Let’s find out all this and more about this popular payment infrastructure.
Exploring the Various Touchpoints in Omnichannel Commerce
Various online and offline touchpoints form a part of an omnichannel payment system. Here is a look at all these touchpoints:
1. Online Platforms
Different digital payment methods can be used to make payments on online platforms. These include net banking, credit cards, debit cards, and digital wallets.
2. Social Media
Some social media platforms enable payment transactions within their interface, enabling social commerce and offering a quick and seamless shopping experience.
3. Physical Stores
Customers can pay at physical stores using cash, cards, or other payment methods. These stores use traditional point-of-sale systems to process the payment transactions.
4. Mobile Applications
Many applications enable in-app purchases and serve as an omnichannel payment touchpoint.
5. Payments over the Phone
Payments can also be made over the phone by providing your card details.
6. Virtual Assistants
Virtual assistants and chatbots provide essential guidance to shoppers when completing payment transactions on online platforms.
7. Subscription Services
Sometimes, customers schedule payments or provide auto-debit instructions for recurring payments. These automated subscriptions are also among the payment touchpoints.
8. QR Codes
Many customers are choosing to make payments by QR code on their mobile device. When creating these QR codes, it’s important to consider QR code sizes to ensure that they are properly scannable on various devices, providing a seamless payment experience.
9. Cross-Border Platforms
These platforms have been designed to enable currency conversion when customers make international payments.
10. Self-Service Kiosks
These advanced devices allow easy transfer of funds without any human intervention. They are installed at various places including metro stations, restaurants, malls and airports.
11. Third-Party Marketplaces
They integrate with the retailer’s payment system to enable smooth payment transactions.
12. Payment through SMS
Often, businesses send payment links to customers via email or SMS. Customers can use these links to transfer the funds quickly.
Step-by-Step Look at Omnichannel Payment Integration
Different payment channels are integrated to process omnichannel payments. The integration is mostly done through Application Programming Interfaces (APIs) that facilitate data exchange between various systems. Here is a step-by-step look at how the integration is done:
1. Collation and Synchronisation of Data
The first step in the process is collating data from different sources. How? When a customer uses a channel, their details, including the items added to the cart, purchased items, and payment methods, are recorded. This data is updated across all the channels for synchronisation. Now, if the customer uses another channel to shop the next time, all the transaction details will still be available, thereby making the switch seamless.
2. Payment Authorisation
As soon as a customer initiates the transaction, the payment gateway being used gets the authorisation request. Verification of the available amount, fraud analysis, and various other steps are involved in this process.
3. Logging Transaction Details
The transaction details are stored in a centralised database after the payment is processed. The information is easily accessible at all touchpoints. It provides important insights and helps manage inventory levels efficiently.
4. Confirmation Message
After the transaction is completed, the customer receives payment confirmation via SMS or email. Customers can choose their preferred method of receiving notifications. To offer a unified experience, messages are sent uniformly across all channels.
5. Data Analysis
Businesses employ smart data analytics software to analyse data generated from customers’ transactional history. This helps them understand the customers’ needs and buying patterns better. By leveraging this information, they can offer a personalised experience and create effective marketing campaigns.
6. Maintenance
Various checkpoints require regular maintenance to ensure they function seamlessly. Any new feature or regulatory norm must be implemented timely manner to ensure smooth transactions.
Additionally, security measures such as multi-factor authentication and encryption are implemented to facilitate secure transactions at various touchpoints. Regulatory compliance standards for payments are adhered to. Businesses also provide round-the-clock customer support to help shoppers with any issues that may arise during the payment process.
The Top Advantages of Streamlining Payments Across Channels
Here is a look at the various advantages of streamlining payments across multiple touchpoints:
1. Enhances Customer Experience
It offers the convenience of switching between different channels without losing the transactional history. The flexibility of switching channels enhances customer experience.
2. Availability of Comprehensive Data
Since the data is collected from multiple channels, it offers comprehensive information. This information can be used to create effective marketing campaigns and make improvements.
3. Strengthens Security
A unified payments system enables managing the security protocols from a single point. This makes it easier to implement security measures and monitor data.
4. Better Inventory Management
It becomes easier for businesses to manage their inventory when they get real-time information about sales, order history, and other essential customer data.
5. Implementing Updates becomes Easier
Businesses can quickly implement updates and make changes in response to market demand. Changes are made uniformly across channels from a central point.
6. Aids in Expansion
With an omnichannel payments system, businesses can easily enter new markets. It is especially beneficial for those trying to expand into international markets as integrated systems support multiple currencies. They also facilitate payment transactions through different methods.
Key Factors to Consider in an Omnichannel Payment Partner
Choosing an efficient and reliable omnichannel payment partner is imperative for establishing a robust payment system. Here is a look at the various factors to consider while selecting an omnichannel partner:
1. Assess your Requirement
To begin with, understand your requirements. This should include both your current needs and long-term business goals. You must also identify your customers’ payment preferences. You will be able to choose a suitable payment system once you know whether your customers prefer to make payments through net banking, digital wallets, or another method. Based on this information, you should be able to understand the features your payment system must possess.
2. Budget
Setting up an omnichannel payment system requires a substantial investment. The amount charged by different providers can vary substantially. Many of them charge fees for every transaction you make. It’s essential to compare prices from various providers and consider your budget before signing a deal. Find out about any hidden costs, and prefer going for someone who maintains transparency in this regard.
3. Reputation
The partner you choose should be well-versed with their task and should comply with all the regulatory standards. You may seek recommendations from your colleagues or mentors to get a reliable partner. Checking online reviews and ratings can also help in this regard.
4. Customisation
Some providers customise the payment process to match your specific requirements. They may add additional features upon your request or modify existing ones to suit your needs better. This helps manage transactions more effectively. He should also be able to scale up if your transaction volumes rise.
5. Provide Test Run
It is advised to take a test run before implementing the system. This is essential to identify any loopholes in the system and take corrective measures promptly. Go for an omnichannel partner who is willing to conduct a test run and make any necessary changes. He should also agree to help train your team to use the software.
6. Maintenance and Upgrades
Your partner should not only create a system tailored to your needs and help with the installation process, but also be available later. He should upgrade the system regularly and provide maintenance services to ensure its efficiency.
How Shiprocket Checkout Simplifies Multichannel Payment Handling
Shiprocket Checkout streamlines multichannel payment handling by offering a single, unified payment experience across all sales channels. Whether your customers shop through your website, app, or marketplace, we offer them a consistent and secure checkout option. We support multiple payment modes, including UPI, cards, and wallets. This ensures convenience for the buyers.
Businesses love our platform because it is secure and efficient. It enables you to manage payments from various sources in a single dashboard. This makes the process simple and quick. It enhances the customer experience and encourages them to come back. Our customer service team is always available to answer your questions and address any concerns.
Conclusion
An omnichannel payment system is gaining popularity, with more businesses opting for it. Managing payment transactions from different customer touchpoints becomes easier with this system. It also helps implement efficient security measures, upgrades the system through a central point, and collects comprehensive user data. In addition to being beneficial for businesses, a unified payment system enhances customer experience. Consistency across various touchpoints helps build trust and enables them to shop with greater ease. It has been observed that businesses that have incorporated this system have seen an increase in their conversion rate.
