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A new white paper from payment technology specialists Giesecke+Devrient outlines the steps banks should take to deliver phygital payments for their customers – and the benefits that will accrue to those banks first to respond to the consumer demand for phygital payments and banking experiences.
An earlier blog in this series explained how many consumers came to experience phygital payments for the first time during the pandemic – and loved the speed, convenience, and enhanced security features of phygital payments, as well as their hyper-personalization.
Phygital experiences in banking and payments range from combining contactless cards with biometric security factors delivered via app, through to clients browsing for financial products online or authenticating transactions by tapping a card against a phone.
The factors that have driven the explosion in phygital include new digital-first payment methods, improved access to technology and faster download speeds, as well as a desire for the comfort and familiarity of physical payments in a digital era.
For instance, G+D’s white paper outlines how the decline in bank branch numbers across Europe over the last decade has led to new opportunities for banks to reinvent in-person services for the digital era via automated banking kiosks, further services via physical cards or through “bank of the future” virtual branches.
G+D also argue that phygital payments can be an impetus for modernization, urging banks to update existing legacy technologies.
As passwords give way to new authentication methods such as biometric ID and haptic recognition, the new white paper says banks should be adapting their products to make sure that both access and delivery are made as fast and easy as possible.
Doing so will ensure that customers of all ages remain loyal to their bank at a time when competition from digital-first “neobanks” and fintechs is intensifying.
Phygital across the entire customer journey
G+D’s new white paper makes it clear that banks should be introducing phygital experiences at every stage of the payments lifecycle, from product selection through to engaging customers in the card production process or automating onboarding for greater speed and convenience.
Today’s customers use phygital banking and payments to make their lives easier and expect their banks to provide solutions that deliver seamlessly across both physical and digital environments.
With the world now moving into a “digital first” era, the payments ecosystem must respond by putting customer experience at the heart of product and service offerings, ensuring that the physical – be it cards, in-branch experiences, or point-of-sale checkout – merges seamlessly with the digital.
Phygital experiences are only set to grow in importance – the onus now lies with banks to deliver these services across their product portfolios.
For more on how to deliver phygital payments to your clients download the new white paper from G+D HERE
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