India recorded 23.06 billion digital transactions in the third quarter of this financial year. This figure included transactions from credit cards, debit cards, and the Unified Payments Interface (UPI), with a value of Rs 38.3 Crore. UPI transactions alone exceeded 19.65 billion transactions worth Rs 32.5 lakh crore. These figures showcase the stellar rise of digital payments in India. The future of finance is cashless. Many banking and non-banking players have entered the digital payments arena. This, combined with the introduction of UPI for feature phones & linking of UPI payments to RuPay cards, has exponentially increased customer choices.
Hansa Research’s, “Digipay CuES (Customer Experience Score) 2022,” shows how customer experience plays a pivotal role in choosing digital payment media. According to the study, 74% of consumers abandoned a digital payment brand after a negative experience. In such a scenario, how does a digital payment app set itself apart? The answer is “by refining the customer experience.”
Here are five ways digital payment systems can enhance customer experience & help in retaining customer to the brand by building loyalty:
Safe and Secure
In light of increasing instances of data breaches, payment fraud, and cyberattacks worldwide, trust has emerged as a deciding factor in selecting digital payment systems. According to the study, banking digital payment apps, rather than non-banking apps, are the winners in this competition because customers believe they have better security, privacy, and customer support. One of the reasons given by 36% of digital payment users who abandoned a digital payment brand after a negative experience was fraud or fraudulent activity. Furthermore, 22% of those who do not use digital payment apps cite fraud risk as a reason.
To prevent a slowdown in the adoption of digital payments, brands need to ensure complete security, fraud protection, and privacy of customer data, as well as have a proactive strategy for detecting new risks and updating authentication and anti-fraud technologies. They also need to emphasize on their data security measures and stringent privacy policies while developing brand communication to assuage customers’ fears. A brand should also routinely inform and educate its customers about safe digital payment practices.
Fast and Easy
Digital payment is extremely popular among Generation Z and Millennials. They are also less loyal than Gen X because their exit barrier is lower. The younger generation is more likely than the older generation to stop using a digital payment brand due to a bad experience. According to the study, fast, easy-to-understand, and use payment solutions as well as responsive customer support, drive their loyalty.
As a result, it is high time for digital payment companies to simplify their systems. Companies need to focus on reducing the complexity of the user interface, offer clean UI with intuitive navigation and support via ‘How to or a step by step’ guide and tutorials, using communication and messaging that is appropriate for both generations. This is essential especially in the race to bank the unbanked in underway.
Read More: Explained: How is RBI making Digital Lending safer with P2P Platforms?
Lose the glitches
Customers choose digital payment systems to make quicker and effortless transactions. If your app is gilded with glitchy transactions that take forever to go through, it can add up to a loss. Developing a strong transaction infrastructure is key to enhancing customer experience and retention. Enhanced compatibility with major e-commerce platforms and quick integration with the upcoming 5G technology is essential.
Be Available
According to the study, 59% of digital payment users reached out for customer support, primarily for information and queries. 37% of digital payment users claimed they faced a problem/ had a reason to complain in the last 3 months and 10% of them claimed their problem remained unresolved. Given the massive volume of customers actively seeking support, brands need to have their customer support front and center. Humanize it, increase options- text, audio, and video, and reduce resolution time. Investing in new-age customer support tools can go a long way for digital brands.
Reward and Engage for loyalty
Given that digital payments will continue to grow and usage will increase significantly, there will be other shifts in consumer behaviour that will drive preferences. So, while security, features, and functionalities currently triumph over rewards, discounts, and cashback for digital payment users in general, the future will see some shifts. Our data from heavy digital payment users revealed that offers, discounts, and cashback, among other things, play an important role in driving their advocacy. Companies need to constantly evolve to ensure engagement with user, this could be via alternatives non-discount methods through collaborations, sweepstakes, games etc. Rewards and Engagement incentives will boost loyalty in the future by driving higher engagement with the consumer.
Digital Payments Going Forward
Digital payment brands are facing both unique challenges and endless opportunities. Given the expanding choices in the landscape of cashless transactions including cryptocurrency, e-RUPI etc and changing value features like digital assets, transaction insurance- loyalty is going to be driven both by companies’ ability to adapt, invent and enhance value for customers. Brands must leverage their financial expertise, and digital technologies and focus on retention as well as acquisition to ensure growth and become first choice.
