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FINANCIAL SERVICES COVID-19 CHANGES THE WAY WE PAY When considering the impact that Covid-19 has had on the retail payments landscape, a lot of the changes we’re seeing constitute a general acceleration of existing trends. BWy Quest Payments System CEO Jan Mason. hile the transition to a ‘less-cash society’ and the rise of digital payments are nothing new, the pandemic has increased the pace of change. Recent research indicates that since the Covid-19 outbreak, more than two-thirds of Australians are using less cash in favour of contactless technology and other digital payment methods. More consumers are accepting new payment technologies and embracing the convenience that digital payment options provide – a trend that will continue and one that retailers must adapt and cater to now, without having the luxury of time. The current state of pay Several factors are at play as the pandemic reshapes retail payments. Widespread lockdowns and ‘stay- home’ directions from government have meant significantly reduced foot traffic in physical stores, although this is recovering, while general hygiene concerns around the use of cash have brought an increase in contactless payments. We’ve also seen an increase in competition from alternative payment providers, such as buy-now-pay- later service Afterpay, vying for a larger slice of the demographic pie as more shoppers opt for deferred payment options. Add to the mix a dip in discretionary spending by consumers and you’ve got a period of intense change and uncertainty that retailers are being forced to navigate. During this time, payment technology providers stepped up to help retailers facilitate more online payment options, ensuring payments kept flowing despite the disruptions. For Quest this involved changing its software to increase the maximum tap-and-go limit from $100 to $200, to minimise the use of PIN pad key mats, as well as developing custom- made payment terminal protective shields that can be disinfected after each use without damaging the terminal. Naturally, some sectors have been harder hit than others. Hospitality continues to grapple with extended lockdowns and restrictions on capacity, while transaction volumes in the fuel sector decreased in the face of border closures and travel restrictions. Supermarkets and pharmacies, while responding to an increase in contactless payments and online orders, have fared well. However, for smaller businesses with no online presence, this period has threatened their viability altogether. Introducing an online offering is the first step. Investing in the payments experience Looking ahead, retailers that offer customers’ preferred method of payment and adopt technology that facilitates and maintains flexible, seamless transactions will position themselves well. Retailers must also consider the vulnerability of retail payments to prolonged outages, which may jeopardise their ability to trade, and threaten business continuity. To assist with this issue, Quest has developed ‘business continuity technology’ to deliver an uninterrupted payments capability and provide retailers with peace of mind when outages occur. It’s also important for retailers to remain wary of the risks involved when setting up an online store, keeping in mind that if something seems too good to be true, it probably is. Businesses must innovate to survive, but it’s critical this doesn’t come at the cost of compliance or customer security. Ensuring the right security systems are in place will ensure the move online is a beneficial one. While the Covid-19 crisis has created considerable challenges for the retail industry, it also presents an opportunity for retailers to reassess their approach to the customer payment experience to help drive the recovery, innovation and growth for businesses and the economy. About Jan Mason Jan Mason is CEO of Quest Payment Systems, based in Melbourne. She leverages more than 30 years’ experience in the payments arena, having contributed to many industry forums including 3DES, EMV, BPAY and card scheme risk committees. Before joining Quest, Jan held various senior management positions at National Australia Bank. About Quest Quest is Australia’s largest and leading full-service payment technology supplier, providing a suite of innovative end-to- end payment solutions for retailers, including countertop, unattended and mobile point of sale payment terminal hardware, software, online payment solutions, contactless, communications and transaction routing solutions. For more information visit questpaymentsystems.com 74 RETAIL WORLD OCT, 2020