The payment services industry has experienced a seismic shift in recent years, due to the influx of new and emerging technologies. Consumer demand is a significant driver of the digital payment experience that will change the face of energy retail forever.
The early 2000s saw a decline in cash usage on the forecourt, this once common payment method started to lose popularity with the introduction of pay-at-the-pump technology and the increasing use of debit and credit cards.
In today’s fast-moving society, customers are demanding quick, effective and secure ways to buy fuel, goods and services at the forecourt. Time is of the essence to many busy shoppers, so long queues at the checkout and waiting for change are not an option.
Contactless payment technology triggered a significant rise in the use of debit and credit cards, which has continued to flourish since the transaction limit was increased to £100. Currently, cards are the preferred form of payment, however, alternative digital payment methods such as Apple Pay, Google Pay and PayPal, are gaining traction and are anticipated to become more widely recognised and adopted.
The Influence of Fintech on Payment Trends
The UK’s financial technology industry (fintech) facilitates the integration of technology into solutions offered by financial service companies to improve their use and delivery to consumers. This industry encompasses a wide range of applications, including PayPal, Apple Pay and Google Wallet, all of which allow for quick and secure online transactions.
For several years, the fintech industry has been a pivotal force in conventional financial services, causing traditional banking institutions to re-evaluate their operational infrastructure and payment technology.
With the rise of e-commerce, digital payments and mobile payment apps, customer demand indicates that a consistent electronic payment experience across all devices and platforms is becoming sacrosanct. This includes frictionless payment methods, real-time payments, digital wallets and mobile banking.
Given the ongoing growth in mobile payments and the deepening cooperation between banks and the fintech industry, payment innovation has never been more relevant or exciting.
Digital Wallets
Digital wallets allow users to store and transfer money, make multiple types of mobile transactions and enjoy a more streamlined payment experience. The use of digital wallets is widespread and not just with the younger generation. Mobile transactions using Apple Pay, Google Pay, Alipay, PayPal and many other digital wallets have become the payment method of choice for many drivers, necessitating forecourt operators to reshape their payment processes to remain competitive.
Whilst remaining strong, the orthodox payment methods of credit or debit cards are becoming stagnant, and the use of cash is diminishing in favour of mobile and digital wallets.
Data Analytics to Enhance Operations
Customers who pay for fuel, goods and services using credit/debit cards or mobile payment apps enable data on the transaction amount, time and items purchased to be harvested by the forecourt operators. When analysed, this invaluable information helps businesses to create time-sensitive promotions such as Early Bird Specials on breakfast foods or Meal Deals at lunchtime, enhancing customer satisfaction and loyalty.
Current Electronic Point of Sale (EPOS) systems can integrate with payment systems to provide detailed analytics on sales trends, peak times and best-selling items. This intelligence can be used to predict demand for various products, ensuring that popular items are always available and reducing waste from overstocking.
Many forecourts offer loyalty programs that require customers to register and use a loyalty card or app, allowing forecourt owners to track individual customer purchases and preferences. This in-depth insight into consumer buying behaviour facilitates the effective management of the loyalty scheme to reward frequent shoppers and encourage repeat business.
These strategies not only improve the customer experience but also enhance operational efficiency and profitability for petrol forecourts.
Safe and Secure Payments
It is critical that card payment terminals are secure and can be trusted by energy retailers and consumers alike. One isolated incident of data breach can destroy a forecourt’s reputation and consumer confidence is often irreparable.
The digitalisation of payment solutions and today’s high-speed, high-volume transactions have rendered manual monitoring and rule-based systems inadequate in the fight against modern fraud techniques. However, technological advancements in payment solutions over recent years have made transactions safer and more secure than ever before.
The mandatory protocol surrounding card payment security and data protection is set by the Payment Card Industry Security Standards Council (PCI SSC), to ensure that regulations are consistent across the globe. Any business that processes, transmits or stores cardholder data must comply with PCI Data Security Standard (PCI DSS) requirements.
These standards define how payment security is implemented and are constantly being reviewed and developed to counteract the latest techniques employed by scammers.
Furthermore, Artificial Intelligence (AI) and machine learning, biometric authentication methods and advanced encryption techniques are methods being employed to aid fraud detection and guarantee secure transactions.
TSG is here to help
TSG Systems is here to help retailers navigate the complex selection of payment solutions, guiding them through the process and simplifying the decision, to establish the right payment system for the business. TSG can supply and install personal identification number (PIN) pads, electronic point-of-sale systems, self-checkouts, outdoor payment terminals, CoffeePay, CarwashPay and digital receipt servers, ensuring full coverage of both in store and forecourt requirements. At the point of installation, full training on all of TSG’s payment hardware and software is delivered, to provide a seamless transition from the legacy equipment.
TSG has over 30 years of experience in the supply and installation of payment solutions for fuel sites across the UK. With its extensive portfolio of products, TSG can satisfy the needs of any size of operation, from a single independently owned business to a national multi-site network.
Author: Cheryl Ashton
