Consumers don't necessarily need more payment options – they need the right option at the right time. This means that companies need to put forth the proper payment platform for a specific purchasing scenario. In this way, payments should take a page from the playbook of digital-native companies such as Netflix, YouTube, and Amazon, which use product recommendation engines to entice users with relevant suggestions based on their previous choices.
Extending product recommendation engines to payments would enable the customer to select the best payment option for them. This requires deeper insight into consumer buying preferences and predictive modeling.
E-commerce product recommendation engines are sophisticated systems that use algorithms and data to predict the products most relevant to the customer in a given context – increasing the likelihood of a purchase.
The proliferation of choice is less about the next big payment platform and more about being smart about how we use the payment platforms that are already available.
Which companies will be the first to improve the customer experience by personalizing the types of payments they offer at certain touchpoints in the purchasing journey? That remains to be seen.
But one thing is certain. Those that do will have a competitive advantage and provide customers with a great experience all around.
This article first appeared in PaymentsJournal. It was authored by Kristine Demareski, global head of payments at Genpact, and Eddie Chin, experience solutions lead, financial services and insurance at Rightpoint, a Genpact company.