With an influx of modern technology and the resulting alteration of consumer behaviour, retailers are having to become increasingly inventive in order to attract customers to their stores. However, for those without the funds necessary to install delivery services or “contactless” payment points, this challenge can often seem insurmountable – meaning small high street retailers can often lose out to larger chain stores based out of town or online.
However, internet payment firm PayPal may have come up with a cost-effective solution which will allow businesses to utilise existing technology and at the same time benefit from high street trade.
In a scheme similar to the “click and collect” operation running in many nationwide chains, consumers could order items from local high street stores using a mobile app which highlights shops and restaurants which accept PayPal as a payment method.
Users can then “check in” by clicking on the retailer of their choice and their first name and picture will be logged on to the store’s computer database. When paying for their items, the cashier simply scrolls to their account using this information and charges all purchases to their PayPal.
Upon completion of purchase, the customer will then receive a digital receipt on their smartphone along with the standard PayPal email notification.
The app is currently only available for residents in Richmond, London, where the new method of payment is being utilised by 12 retailers. One such business is The Farmery frozen yoghurt store, with co-founder Ismail Ahmed claiming that the benefits of the initiative are already beginning to show.
He says; “Lots of our customers have a mobile phone, and are familiar with using apps on their phones.
“What’s better is that we didn’t even have to change anything about the way we run our business – we’re still using the same tills and system, including iPads and iPhones to operate the technology.
“All the customer has to do is check in on their phone, we see them on our system and we can just charge them – they can even check in before they get to the shop for their frozen yoghurt, saving even more time.”
PayPal claims that the app is a further step in bringing local businesses and their customers together. This is greatly helped by a certain aspect of the app which allows the retailer to view each customer’s recent and favourite transactions, helping them to determine which products are likely to appeal to each individual and making recommendations based on this information.
A PayPal spokesman discussed the future of the app, saying; “While we can’t disclose any confirmed retailers who will use “check in to pay”, we will have brands such as Oasis, Coast, Karen Millen, Warehouse, Snow and Rock, Runners Need, Cycle Surgery, M&Co, Soletrader, SOLE and Thomas Pink live within the app this year.”
With contactless payment becoming more and more popular both within the UK and further afield, it is hoped that this initiative will provide a cost-effective option for small high street retailers keen to get in on the action.
Would you use the “check in to pay” app if given the option, or do you prefer to use traditional payment methods such as cash or card?
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