Digital transformation has extended into all aspects of retail space. Consumers acclimated to the on-demand economy have come to expect convenience, reliability, speed, and an expanding array of options, including choices in payment and delivery. These heightened expectations provide both challenges and opportunities for merchants to grow their customer base.

To discuss digital transformation and the role of omni-commerce payments, PaymentsJournal sat down with Benny Tadele, VP Merchant Solutions, ACI and Raymond Pucci, Director, Merchant Services, Mercator Advisory Group.

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Driving Forces behind the Digital Transformation of the Retail Space

Digital transformation has been driven by both consumers and retailers. Consumer expectations continue to rise while retailers seek to maximize market share and improve efficiency and operational excellence.

The primary force behind this transformation has been a significant increase in consumer expectations. The consumer has become a hybrid shopper. Pucci uses the word “concierge” to explain that “consumers order and pay when, where, and however they want to. So that’s why merchants really need to be prepared to handle the cross channel shopping behavior of consumers.”

Today’s consumers are accustomed to the convenience and speed of online shopping. Now, they want access to more and faster payment and delivery options wherever they shop. Brick and mortar stores can expedite the checkout process using radio frequency identification (RFID), allowing customers to enter the store, shop, and exit with their purchases without any human or device interaction.

Retailers seeking to maximize market share need to provide omni-commerce opportunities that meet consumer expectations for tailored cross channel shopping experiences. These cross channel buying options comprise over $90 billion in revenue that retailers can no longer ignore. If choices are limited, and a merchant does not provide the options that customers want, then the customers will take their business elsewhere.

The third driver of the transformation has been the opportunity to improve operational efficiency. For example, mobile equipped attendants are more responsive to consumer needs because they are able to spend more time interacting with shoppers and less time behind the counter. In addition, having an enterprise wide inventory system improves inventory management and reduces costs.

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