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A new white paper from payment technology specialists Giesecke+Devrient reveals that the combination of physical and digital experiences is now the number one consumer preference for payments and banking across Europe, North America, and Asia.
From using apps to enhance payment cards through to “click and collect” services at retailers, phygital payments are now so popular with shoppers that a recent article[1] predicted phygital will constitute a quarter of retail sales by Q4 2026.
In their paper, G+D explain how many consumers used phygital payments for the first time during the pandemic – and found they loved the speed, convenience, and enhanced security features of phygital payments, not to mention their hyper-personalization.
71% of those who first used self-checkouts in-store during the pandemic have continued the practice, while just under half (49%) of those surveyed said they spent more in-store when picking up click-and-collect items.
More than two-thirds (68%) of consumers now use their mobile devices to research products while shopping in-store.
Phygital experiences in banking and payments range from combining contactless cards with biometric security factors delivered via app to confirm user ID, through to clients browsing for financial products online, or authenticating transactions by tapping a card against a phone.
The white paper outlines how banks can enhance the overall customer experience through phygital payments, positively building loyalty, growing customer usage/engagement and creating new revenue streams at a time of stiff and rising competition.
Fresh thinking required
However, G+D note that taking advantage of the opportunity will require fresh thinking from banks compared to the strategies they have employed over the last decade, especially when it comes to designing customer experiences, and ensuring that customer expectations for phygital services across the payments journey are met.
Their white paper also sets out the benefits of taking a fully phygital approach for banks, from technology modernization through to increased revenue, new product opportunities, and improved profitability thanks to better customer loyalty and growth in their usage of a bank’s products.
For more on why consumers are going phygital – and how to deliver phygital payments and banking to your clients – download the new white paper from G+D here
[1] “Phygital is the new black”
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