The Green Sheet Online Edition

September 09, 2024 • Issue 24:09:01

Capitalizing on back-to-school: A tech-focused guide

By Elie Y Katz
National Retail Solutions (NRS)

At the tail end of the back-to-school season, fintech companies and payment processors still have a unique opportunity to showcase their technological prowess and capture a significant market share. This annual shopping period presents high transaction volumes and tech-savvy consumers, making it an ideal time for industry leaders to shine.

Here's how to leverage your technology to make the most of this lucrative time and be in a prime position to meet the demands of the even busier year-end holiday shopping season.

Embrace contactless and mobile payments

The modern student and parent expect seamless, touchless transactions. Ensure your payment solutions support:

• NFC-enabled contactless cards
• Mobile wallets (Apple Pay, Google Pay, Samsung Pay)
• QR code payments.

Highlight the speed and security of these methods to merchants, emphasizing how they can reduce queue times during the rush.

Optimize for ecommerce and omnichannel

With many back-to-school purchases happening online or through hybrid shopping experiences, it's important to:

• Provide robust APIs for easy integration with ecommerce platforms
• Offer seamless omnichannel solutions that unify in-store and online transactions
• Implement one-click checkout options to reduce cart abandonment.

Educate your merchants on the importance of a smooth online-to-offline experience, such as buying online and picking up in-store.

Leverage AI and machine learning

Utilize advanced technologies to enhance the shopping experience by:

• Implementing AI-powered fraud detection to handle increased transaction volumes securely
• Using machine learning algorithms to offer personalized product recommendations
• Developing chatbots to handle customer inquiries and provide instant support.

Showcase how these technologies can help merchants manage the influx of customers while maintaining security and personalization.

Harness data analytics

Empower your merchants with actionable insights as follows:

• Provide real-time sales dashboards to help manage inventory and staffing
• Offer predictive analytics to forecast peak shopping days and popular items
• Develop customer segmentation tools to enable targeted marketing campaigns.

Demonstrate how data-driven decisions can maximize profits and improve customer satisfaction during this critical sales period.

Streamline loyalty and rewards programs

Create tech-driven loyalty solutions that cater to the back-to-school crowd by:

• Implementing digital loyalty cards integrated with payment methods
• Developing apps that gamify the shopping experience with challenges and rewards
• Offering instant cashback or points that can be redeemed immediately.

Highlight how these programs can drive repeat business and increase average transaction values.

Implement cash discount programs

Offer merchants a powerful tool to incentivize cash payments and manage processing costs with actions such as:

• Providing POS systems that automatically tabulate dual pricing: regular prices and lower prices for cash payments
• Highlighting how this program allows merchants to offer valuable discounts to customers who choose to pay with cash

Emphasize the technology behind seamless dual pricing calculations, showcasing how your solution makes it easy for merchants to implement and manage such programs.

Facilitate buy now, pay later (BNPL) options

The back-to-school season can strain budgets. Offer flexible payment solutions. To do so:

• Partner with popular BNPL providers or develop your own solution
• Ensure seamless integration of BNPL options at checkout, both online and in-store
• Provide clear, transparent terms to build trust with consumers.

Demonstrate to merchants how offering BNPL can increase average order values and attract budget-conscious shoppers.

Prepare for high-volume stress

The back-to-school rush can test even the most robust systems. To ensure you're ready:

• Conduct thorough load testing of your payment processing systems
• Implement auto-scaling solutions to handle traffic spikes
• Offer 24/7 technical support during peak shopping periods

Emphasize to merchants the reliability and scalability of your solutions, giving them confidence during this crucial sales period.

The back-to-school season offers a prime opportunity for fintech companies and payment processors to demonstrate the power of their technology. By focusing on contactless solutions, ecommerce optimization, AI implementation, data analytics, enhanced loyalty programs, robust security, flexible payment options and system reliability, you can position yourself as an indispensable partner to merchants navigating this busy period.

Elie Y. Katz is founder, president and CEO at National Retail Solutions (NRS), https://nrsplus.com. Contact him by phone at 201-715-5179 or by email at ekatz@nrsplus.com.

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.