Cashless, smartphone-based payment platforms are rapidly becoming the next essential technology for U.S. retailers. Currently, over half of Americans (51%) utilize some form of contactless payment, including mobile wallets like Apple Pay and tap-to-go credit cards.
Currently, a new generation of frictionless smartphone applications is expanding beyond the realm of basic contactless payments, providing innovative methods of purchasing products in physical stores. A prime example of this is Buy Now Pay Later platforms, such as Klarna and Afterpay.
It is anticipated that BNPL transactions in the United States will increase by approximately 14% in 2024 compared to 2023, as retail leaders such as Walmart take payments from BNPL apps in-store. In the interim, the prevalence of applications such as Venmo, which allow consumers to divide bills between them, is also on the rise. CVS and Forever 21 are among the retailers that are leading the way in the implementation of these applications on the supply side.
The issue of in-store connectivity becomes increasingly important with the proliferation of innovative app-based payment services and contactless payments. Consequently, it is reasonable to anticipate that an increasing number of retailers will resolve the challenges associated with in-store connectivity in order to guarantee a positive and seamless purchasing experience in the coming years.
In order to achieve this goal, it will be necessary to implement cellular coverage solutions, such as cellular signal enhancers, that guarantee reliable connectivity within stores.
Sales are stimulated by payment innovation.
Retail leaders recognize that BNPL services are economically viable due to their ability to provide consumers with numerous payment options. They are also aware that contactless payment platforms can facilitate transactions that may not have been achieved otherwise.
For instance, 48% of BNPL users report that they utilize the service to make purchases that do not align with their typical budgets, as indicated by a single study. Retailers will reap the rewards of guaranteeing that consumers remain connected, from anticipating increased revenue to offering shoppers greater purchasing flexibility.
Solving connectivity deficiencies
The payment experience is of paramount importance to the consumer. They anticipate that their applications will be accessible when required, and they desire the ability to make payments swiftly and effortlessly from their mobile devices. Consequently, in-store connectivity deficiencies are an issue. The usability of smartphone applications and point-of-sale systems can be substantially impacted by connectivity gaps when cellular coverage is limited or nonexistent.
Wi-Fi has been the preferred solution for providing consumers with in-store connectivity for a long time and is a common feature in retail. Nevertheless, despite the numerous advantages of Wi-Fi, it is most effectively employed for private business operations, such as inventory management or responding to communications from headquarters. This is due to the fact that private Wi-Fi networks are distinct from the WiFi networks we use while purchasing. The majority of public Wi-Fi networks are unencrypted and necessitate users to sign in with their personal information. This constitutes an evident security vulnerability. Forbes reports that 40% of consumers in the United States have experienced data breaches while using public Wi-Fi networks.
Cellular technology is not only significantly more secure for public use, but it also operates silently in the background to ensure a seamless connectivity experience for consumers when in-building coverage is robust. The emergence of cashless payments has further underscored the significance of dependable cellular coverage and its influence on the purchasing experience. Consequently, numerous retailers have implemented measures to enhance in-store connectivity in the event of inadequate coverage.
Utilizing distributed antenna systems and cellular signal enhancers
The good news is that there are straightforward solutions to satisfy coverage requirements that are contingent upon the scale of the building: a smart cellular signal enhancer or an intelligent cellular coverage DAS (distributed antenna system). These technologies operate by capturing signals off-air and extending them within a building to provide dependable, robust connectivity.
In comparison to its Legacy DAS counterpart, intelligent cellular coverage DAS are the most cost-effective and optimal solutions for big-box retailers. Legacy DAS are most appropriate for large venues, such as stadiums or airports, and necessitate a protracted carrier approval procedure. Intelligent cellular coverage DAS can be installed rapidly, do not require carrier approval, and provide comparable coverage performance at a significantly reduced cost.
Conversely, clever cellular signal boosters are optimally fitted for small-box retailers. These systems are ideal for filling stations, convenience stores, and mini-marts, as they can be installed in as little as one day and provide superior performance and functionality that traditional “dumb” repeaters cannot match. They are a rapid and uncomplicated method of enhancing the user experience and connectivity for both employees and consumers.
Facilitating the digital transformation of retail
Signal enhancers guarantee uninterrupted data transmission throughout stores by efficiently amplifying cellular signals. In doing so, they enable the pervasive use of payment apps and platforms such as BNPL, thereby enabling retailers to deliver the best possible user experience for consumers and drive sales growth. Therefore, it is imperative to consider modern, intelligent cellular coverage DAS and smart signal enhancers as a critical component of any in-store digital transformation and as a means of aligning payment capabilities with consumer expectations.