Diverse Payment Options for a Dynamic Consumer Experience 

By Suresh Dakshina, President and cofounder, Chargeback Gurus

One of the most significant trends in retail for 2023 will be the proliferation of new payment options. Consumers are becoming more comfortable with digital payments, and retailers will need to keep up with this trend. Digital wallets are becoming increasingly popular, and new technologies like real-time payments and biometric payments are opening up new doors for merchants and customers alike. In addition, the rise of embedded payments has enabled merchants to create their own payments systems.


Many of these changes are driven by consumers’ desire for faster and more convenient transactions. Security also plays a role, as many new payment methods incorporate fraud protection features such as tokenization. In order to remain relevant and meet the needs of consumers, businesses need to offer a diverse range of payment options in 2023.


Typically enabled by third-party vendors, companies are using embedded payments to allow customers to pay within a merchant’s own platform. This technology has enabled companies to provide a more seamless experience for their customers, resulting in improved customer satisfaction and increased revenue. While discussion of embedded payments has often focused on brick-and-mortar businesses facilitating payments through their own apps, this trend will affect e-commerce as well.

Fulfillment centers that streamline processes and adopt intelligent, scalable, and strategic automation technologies are setting themselves up to be resilient against continuing market dynamics.

For e-commerce merchants, embedded payments reduces the amount of manual data entry associated with traditional payments, streamlining the checkout process for customers. It can also reduce payment processing costs for merchants when customers are encouraged to make larger transfers that can facilitate multiple purchases. For these reasons, embedded payments are becoming increasingly popular amongst both businesses and consumers.


The proliferation of new payment methods will also help lower the barrier to entry for merchants looking to accept payments without having to set up complicated payment gateways or have extensive technical knowledge. By providing customers with more options and convenience, merchants will be able to build better relationships with their customers, increase sales, and reduce lost revenue due to failed payments.

New payment methods carry new risks for retailers. As these payment methods become more widespread, businesses must ensure that their systems are secure and compliant with industry standards. This includes investing in security measures such as encryption and tokenization, as well as monitoring for fraud and other malicious activity. Additionally, retailers will need to stay up-to-date on the latest regulations related to payments in order to protect customers and remain compliant.


Every payment method also comes with its own complications when it comes to customer disputes. Most merchants will be uncomfortably familiar with credit card chargebacks, but different methods of payment have different rules for what happens when a customer disputes a charge. Some go through the usual chargeback process with the platform acting as an intermediary, while others have entirely separate dispute systems.


Maintaining a secure transaction environment is essential for customer satisfaction and trust in any retail business. Retailers should educate their customers on the security measures they have implemented to ensure that their transactions remain secure. By investing in a secure payment infrastructure and keeping customers informed about security measures, businesses can ensure that customers feel safe when making their purchases.


It's clear that retail is rapidly changing in response to consumer preferences and technology advancements. As payment methods evolve, retailers must keep up in order to remain competitive in the market. From offering new payment options and embedded finance solutions to implementing security measures, businesses must stay ahead of the curve in order to remain successful. By understanding the coming trends in payments, retailers can make informed decisions that will help them succeed in their business.


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