Technology & Innovation

Digital Payment Technology Transforming the Retail and Banking Sectors

digital payment technology

There have been significant shifts in the banking and finance sector over the last decade, with occupiers now targeting small-scale footprints for cashless banking models that cater to the digital banking habits of customers. As a result, new fit outs trend towards an open plan and a less rigid retailing environment. As a result, tenants can adopt a more flexible approach to their design masterplan.

It isn’t only banks that are benefiting from a tech-focused customer transaction revamp, as fashion, food and electronic retailers are enjoying improved efficiency in floor space design as bulky point of sale (POS) stations are no longer required.

With portable and cashless POS technology, transactions can become part of the natural sales process allowing an efficient and streamlined transaction experience between shoppers and retailers. This also enables secure transactions and removes the risk of human error whilst handling cash.

“Customer experience is enhanced around impulse purchases, because of the ability to meet and transact at the shelf or location of the product. This creates a more immersive sales experience as it removes traditional physical barriers,” comments Cushman & Wakefield’s Director of Retail Leasing NSW, Matt Hudson.

Early this decade, Apple recognised the need to minimise waiting times by providing employees with handheld POS systems. Customers can purchase an iPhone at the display, tap their credit card and have an electronic receipt emailed to them within a matter of seconds, followed by the product being delivered right to them. As advanced financial technology becomes more affordable, it is only a short time before smaller retailers adopt similar transactional practices in pursuit of improved customer satisfaction and sales efficiency.

So what’s next for financial technology?

  • Wearable NFC (near field communication) payment methods – the Bankwest Halo is an Australian market first
  • Amazon Go – introducing ‘Just Walk Out’ technology to grocery shoppers, reshaping the weekly shopping trip
  • A shift in retail floor space requirements – customer focused layouts, queue minimisation and innovative visual merchandising

The above originally appeared on Cushman & Wakefield’s The Retailer series – an Australian publication highlighting the latest retail and consumer trends.

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