As Black Friday approaches, retailers prepare for the busiest shopping period of the year. With Nationwide Bank forecasting record sales and a 9% increase in transactions this Black Friday compared to 2023, many retailers will focus on the final touchpoint in the customer journey: the point of sale. The rise of new payment methods and growing consumer expectations are encouraging retailers to find the right balance between convenience, transaction security and efficiency.
Payment trends: flexibility and convenience
The evolution of retail payment methods continues to impact consumer shopping preferences, and Black Friday in particular encapsulates this trend. As consumers switch to a mobile-first shopping approach, businesses should prioritise diversifying their payment processing methods in order to meet shifting customer demand.
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“In today’s environment, consumers want speed and convenience,” commented Deepak Anand, General Manager at SHOPLINE UK, “The most successful brands this Cyber Weekend will be those that meet these demands – especially at checkout”.
Digital wallets, Google Pay, PayPal, and flexible payment options such as “buy-now-pay-later” or “pay in instalments”, are gaining traction as consumers increasingly seek the most convenient checkout experiences. In the lead up to Black Friday, Anand’s message is clear: “Retailers must cater to these preferences or risk losing business to competitors offering more flexibility”.
However, optimising payment flexibility goes beyond selecting the right array of methods offered by businesses. Partnering with a reliable payment provider is key. Saran Talasila, payment specialist at Exactly, emphasised: “A reputable payment solution provider can assist in identifying the most suitable options tailored to specific business needs, whether they are merchant accounts, hosted or integrated payment gateways, or a strategic blend of both”.
While online transactions are one area to consider for brands, streamlining payment processing in-store is equally important for those with bricks-and-mortar locations. Retailers who fail to optimise their payment systems risk losing valuable opportunities to engage with customers during the holiday rush.
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By GlobalDataAmber Hovious, VP of Marketing & Partnerships at Teamwork Commerce, pointed out that long queues and slow checkout times remain a persistent challenge during high-traffic events like Black Friday.
“Advanced technologies can drastically reduce checkout times; mobile POS allows staff to complete transactions anywhere in the store, improving efficiency.”
On developing Black Friday strategies, Hovious emphasised the importance of prioritising long-term gains over short-term rewards: ”Retailers who can deliver top-tier shopping experiences and improve customer satisfaction during the Black Friday shopping season can lay solid foundations for the other festivities ahead such as Boxing Day and Christmas. Most importantly, an expanded customer base and enhanced consumer loyalty off the back of these busy shopping periods can provide retailers with increased opportunities in the New Year.”
Security challenges
As online sales grow, so do cyber security threats. With businesses handling extreme volumes of data and the intensification of online transactions, fraudsters and hackers exploit this moment of high vulnerability to strike.
Andy Hind, Head of Online Fraud & Legal Services at NBCS, highlighted the growing prevalence of fraudulent claims and returns fraud, particularly within online retail.
“With so many transactions now taking place online, the opportunities for fraudulent claims are multiplying”, explains Hind.
“Fraudsters are using ever more sophisticated methods, including social engineering, to exploit retailers. It’s critical for businesses to have the right systems in place to detect and respond to these threats swiftly.”
Returns fraud is now becoming one of the most significant areas of loss for retailers during peak shopping events. Shopping scammers are employing clever tactics like returning goods they never bought, or even stolen and counterfeit items, in exchange for cash or store credit.
Dean Frew, President of RFID Solutions Division at SML Group noted that the key to addressing this issue lies in investing in the right technology to mitigate shrinkage: “One retailer has shared with us that over $2m per year is lost to returns fraud. Using RFID technology, retailers can instantly verify whether an item has ever been sold and manage the returns process accordingly. This not only prevents losses but also deters fraudulent activity”.
Progressive technology, such as RFID tags, can be applied to items to help businesses track products through the return process, ensuring only legitimate returns are accepted. This system acts as a safeguard, ensuring retailers can efficiently handle high customer traffic without getting slowed down by endless refund lines or the constant threat of fraudsters slipping through the cracks.
Exactly’s Saran Talasila added: “Prioritising a secure checkout experience and safeguarding against fraud is essential for fostering consumer trust, especially as customers become more tech-savvy and aware of security risks”.
Dominik Birgelen, CEO of Onceclick AG Group, warned that the vast amount of data collected both online and offline makes retailers attractive targets for hackers, increasing the risk of sophisticated cyberattacks.
“Throughout the holiday season, retailers collect a wealth of data from online and offline stores”, explained Dominik Birgelen.
“While technology allows retailers to improve their security, it is also leveraged by hackers to perform sophisticated attacks. Credential theft, phishing, malicious bots, and insider threats are some of the common cybersecurity threats facing retailers. To mitigate these risks, retailers should deploy a combination of advanced security solutions while pairing them with proactive cybersecurity strategies”.
Opting for a Zero Trust approach ensures that no user or device is inherently trusted. Its adoption represents a turning point for businesses.
“If a hacker gains access to part of the system, they won’t have free rein over other resources” added Birgelen.
Achieving the perfect balance this Black Friday
Emerging payment methods are transforming Black Friday into a smoother and more seamless experience for consumers. Retailers can expand their customer base by offering flexibility and functionality during this peak shopping season.
However, as payment systems become more complex, the risk of cyber criminal activity also increases. Striking the right balance between flexible payment options and convenient retail experiences, while ensuring security, is essential for businesses to capitalise on this festive season.
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