There is a lot going on in the payments space. One trend, in particular, I would like to highlight is how retailers are starting to see the benefits of driving payment innovation to respond to a shift in consumer shopping behavior.
A perfect example of this is the recent launch by Brazilian fashion retailer, Renner. They just announced the launch of their MasterPass digital wallet, a first for a department store in the Latin America and Caribbean region. For those that don’t know, Lojas Renner is the second largest Brazilian department store in the country with more than 300 locations across Brazil.
Despite their strong brick and mortar presence, they saw the value in strengthening their online shopping experience and becoming an innovator in payments among retailers. And, this launch couldn’t come at a better time.
Research conducted by Business Insider (BI) Intelligence is predicting that Latin American markets will see an increase in the growth of online retail sales. And, according to their research, Brazil dominates this trend, accounting for 42% of the region’s total e-commerce sales.
Despite this shift in consumer shopping behavior, digital wallets are a new innovation for retailers. But it’s a trend that can reap many benefits. A well-built wallet can offer retailers as well as consumers much more than just a better payment experience. These include:
- More payment options: digital wallets open the door for easier e-commerce transactions but can also be used at the POS
- The ability to implement loyalty or rewards capabilities: This can be done by linking their existing reward systems to the wallet or implementing one. Retailers also have the ability to learn a bit more about their customers shopping habits – allowing them to optimize their offerings.
- Security: Digital wallets come with a series of security features to protect consumer data. This security along with app simplicity and ease of use will encourage adoption.
Digital wallets is just one example of how MasterCard and merchants can work together to continually innovate for the benefit of consumers. It also helps to enhance a retailer’s brand experience – given that more and more consumer touchpoints are being done in the digital space. With a focus on convenience, experience and speed of payments, retailers can truly reap the benefits of digital – and MasterCard is the perfect partner to help them do this.