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Features
Entering the As more small-to-medium-sized businesses
omnichannel age expand, they will need to accept payments
across more than one channel. This will
become more and more important to the retail
he term omnichannel generally pertains to sector as consumers continue to frequent
offering a consistent brand experience across different channels to finalize purchases.
all channels of business. Many companies – pri- ‒ Kristen Gramigna, BluePay Processing LLC
T marily retailers – are exploring the omnichannel
experience to provide customers with seamless messaging
at every entry point used to make a purchase. The aim
is to leverage the buying experience to distribute cross- Payment providers on board
channel promotions and deliver sticky loyalty tactics to Joseph pointed to companies like Apple Inc., which is using
keep customers engaged, regardless of the method they Bluetooth beacons in stores to prompt customers to make
use to finalize a sale. on-the-spot mobile purchases, and restaurants that give
customers NFC-enabled touch pads to find open tables,
Omnichannel retailing has been steadily making headway place orders and pay while a cashier remotely monitors.
since Starbucks Corp. introduced its mobile payment app
in January 2011. The exclusive, loyalty-based solution The mounting convergence of payment, communication
was an instant hit, and has risen in popularity since. The and marketing technologies has inspired omnichannel
app reportedly accounted for more than 85 percent of all payment veterans and newcomers alike to align with
mobile payments at the POS in 2014, giving credence to the the growing number of retailers that are seeking expert
idea of using a smart omnichannel strategy to strengthen omnichannel guidance.
a company's overall market share.
No longer the exception "As more small-to-medium-sized businesses expand,
they will need to accept payments across more than one
It is becoming increasingly common for retailers to channel," said Kristen Gramigna, Chief Marketing Officer
engage with customers across multiple channels to at BluePay Processing LLC, "This will become more and
push promotions, answer pricing and inventory queries, more important to the retail sector as consumers continue
and offer alternative checkout options. According to to frequent different channels to finalize purchases.
recent research commissioned by ACI Worldwide Inc.,
omnichannel retail sales are predicted to reach $1.8 trillion "Omnichannel has worked out well as a differentiator
in the United States by 2017, with sales in Europe predicted for us because we can integrate with the POS, shopping
to hit €920 billion ($1.02 trillion) by 2018. cart or accounting applications, and can even commerce-
enable a merchant's ERP system."
However, as one trend emerges, so does its nemesis.
Nikhil Joseph, Emerging Technologies Analyst at Other payment providers aren't as eager to put so many
Mercator Advisory Group, cautioned retailers and their eggs into the omnichannel basket; they are standing by
payment providers to be mindful of omnichannel pitfalls. while companies like BluePay ride the first omnichannel
"If you define the goal of the omnichannel strategy from wave. But if Fortune 500 companies like Starbucks, Apple
a retailer's point of view, it is to capture and monetize and Wal-Mart Stores Inc. are all reporting omnichannel
attention," Joseph said. "Customers are already looking at success it's only a matter of time before a host of other
their smartphones to check prices, read reviews and ask retailers will follow.
for advice while standing in a brick-and-mortar store, yet
the statistics show over half of them aren't purchasing." This trend is supported by recent Boston Retail Partners
research indicating five years from now, almost two thirds
Joseph reminded omnichannel retailers that, "People are of the world's retailers will be able to identify customers
using their phones in the stores, and if you're not the one via their smartphones when they walk through the
they are connected to, you've lost the sale because online retailers' doors.
competitors have already captured their attention with a
more attractive pricing and shipping offer." Joseph's advice to payments industry trendsetters who
want to help omnichannel retailers thrive is that "each
Nevertheless, as the shift to Europay, MasterCard and merchant's omnichannel needs are different, but think
Visa (EMV) chip cards continues in the United States, new about tools you can provide a retailer to make their cus-
uses for old technologies, including radio frequency, near tomer buying experience intuitive and seamless, such as
field communication (NFC), quick response, Bluetooth card-on-file services, intelligent inventory applications or
low energy, and Wi-Fi, are emerging that will help a payment solution that solves a particular pain point."
omnichannel merchants prevail.
53
Entering the As more small-to-medium-sized businesses
omnichannel age expand, they will need to accept payments
across more than one channel. This will
become more and more important to the retail
he term omnichannel generally pertains to sector as consumers continue to frequent
offering a consistent brand experience across different channels to finalize purchases.
all channels of business. Many companies – pri- ‒ Kristen Gramigna, BluePay Processing LLC
T marily retailers – are exploring the omnichannel
experience to provide customers with seamless messaging
at every entry point used to make a purchase. The aim
is to leverage the buying experience to distribute cross- Payment providers on board
channel promotions and deliver sticky loyalty tactics to Joseph pointed to companies like Apple Inc., which is using
keep customers engaged, regardless of the method they Bluetooth beacons in stores to prompt customers to make
use to finalize a sale. on-the-spot mobile purchases, and restaurants that give
customers NFC-enabled touch pads to find open tables,
Omnichannel retailing has been steadily making headway place orders and pay while a cashier remotely monitors.
since Starbucks Corp. introduced its mobile payment app
in January 2011. The exclusive, loyalty-based solution The mounting convergence of payment, communication
was an instant hit, and has risen in popularity since. The and marketing technologies has inspired omnichannel
app reportedly accounted for more than 85 percent of all payment veterans and newcomers alike to align with
mobile payments at the POS in 2014, giving credence to the the growing number of retailers that are seeking expert
idea of using a smart omnichannel strategy to strengthen omnichannel guidance.
a company's overall market share.
No longer the exception "As more small-to-medium-sized businesses expand,
they will need to accept payments across more than one
It is becoming increasingly common for retailers to channel," said Kristen Gramigna, Chief Marketing Officer
engage with customers across multiple channels to at BluePay Processing LLC, "This will become more and
push promotions, answer pricing and inventory queries, more important to the retail sector as consumers continue
and offer alternative checkout options. According to to frequent different channels to finalize purchases.
recent research commissioned by ACI Worldwide Inc.,
omnichannel retail sales are predicted to reach $1.8 trillion "Omnichannel has worked out well as a differentiator
in the United States by 2017, with sales in Europe predicted for us because we can integrate with the POS, shopping
to hit €920 billion ($1.02 trillion) by 2018. cart or accounting applications, and can even commerce-
enable a merchant's ERP system."
However, as one trend emerges, so does its nemesis.
Nikhil Joseph, Emerging Technologies Analyst at Other payment providers aren't as eager to put so many
Mercator Advisory Group, cautioned retailers and their eggs into the omnichannel basket; they are standing by
payment providers to be mindful of omnichannel pitfalls. while companies like BluePay ride the first omnichannel
"If you define the goal of the omnichannel strategy from wave. But if Fortune 500 companies like Starbucks, Apple
a retailer's point of view, it is to capture and monetize and Wal-Mart Stores Inc. are all reporting omnichannel
attention," Joseph said. "Customers are already looking at success it's only a matter of time before a host of other
their smartphones to check prices, read reviews and ask retailers will follow.
for advice while standing in a brick-and-mortar store, yet
the statistics show over half of them aren't purchasing." This trend is supported by recent Boston Retail Partners
research indicating five years from now, almost two thirds
Joseph reminded omnichannel retailers that, "People are of the world's retailers will be able to identify customers
using their phones in the stores, and if you're not the one via their smartphones when they walk through the
they are connected to, you've lost the sale because online retailers' doors.
competitors have already captured their attention with a
more attractive pricing and shipping offer." Joseph's advice to payments industry trendsetters who
want to help omnichannel retailers thrive is that "each
Nevertheless, as the shift to Europay, MasterCard and merchant's omnichannel needs are different, but think
Visa (EMV) chip cards continues in the United States, new about tools you can provide a retailer to make their cus-
uses for old technologies, including radio frequency, near tomer buying experience intuitive and seamless, such as
field communication (NFC), quick response, Bluetooth card-on-file services, intelligent inventory applications or
low energy, and Wi-Fi, are emerging that will help a payment solution that solves a particular pain point."
omnichannel merchants prevail.
53
