The digital revolution kicked off in the 1980s with the advent of the internet, and it really gained traction in the 2000s due to the growth of mobile devices, big data, computing clouds and social networking sites.
In that time, the way customer transactions are performed has changed markedly. To the point where now, the average Australian makes around 730 electronic transactions every year, according to the Reserve Bank of Australia.
With major developments and innovations in technology showing no signs of slowing down, the way goods and services are bought and sold is unrecognisable from what it was before the Sydney Olympics of 2000.
From contactless payments to personalised online shopping experiences, here are some of the key ways in which the digital revolution has changed customer transactions.
1. Contactless Payments
Although the first EFTPOS payment in Australia was made at BP stations back in 1984, the rise of Near Field Communication (NFC) technology has been a real game changer.
Long gone are the days when people fumbled around for cash or struggled to remember a PIN code at the cash register. Instead, equipment such as a contactless payment machine offered by Smartpay enables consumers to enjoy a fast, secure, and convenient way to pay.
Just by simply tapping a credit card, phone, or even a wearable device like a smartwatch onto the machine, transactions can be completed in seconds, which goes a long way towards improving a customer’s shopping experience.
2. e-Wallets
There was a time when the act of leaving home without our purses or wallets would leave us well and truly stranded. But thanks to e-Wallets, this is something more than 40% of the population does now whenever they go out.
Thanks to their capability of securely storing all of your payment details on your phone, applications such as Apple, Google and Samsung Wallet have made transactions much quicker, safer and convenient for both business and customers.
3. E-Commerce and Online Shopping
Perhaps the biggest change brought about by the digital revolution, in relation to how customer transactions now take place has been online shopping.
It has been estimated that there are over 30 million e-commerce stores online selling everything you could possibly imagine. Between them, the likes of Amazon, eBay, and Shopify have revolutionised retail, making it possible for any e-retailer to reach a global customer base.
Overall, around 2.14 billion shoppers are believed to buy items online, at least once every 12 months. For them, online shopping is a way to buy something conveniently, at any time of the night or day, without having to negotiate crowds or people, travel long distances or wait for a long time at the cash register.
4. BNPL (Buy Now Pay Later)
Another recent innovation to come out of the digital revolution is the ability to Buy Now Pay Later (BNPL).
Championed by providers like Afterpay and Zip, these types of applications enable shoppers to pay for what they want to buy over four equal payments, typically scheduled between 2-4 weeks apart.
Subsequently, if a person wants to purchase a jacket or dress for $160, but doesn’t currently have all those funds available. They can choose to pay for it over four instalments of $40 instead.
Due to the purchase not accruing interest, this option has become particular popular in recent times, as people view it as a much more preferable solution than using credit cards.
5. Cryptocurrency
Cryptocurrency has been around for about 15 years now, but in recent times, it has become more widely adopted as a method of payment for goods and services.
Hundreds of major companies around the world now accept the likes of Bitcoin, Ethereum, Binance and Litecoin as legal tender, including Microsoft, Starbucks, AT&T, PayPal, Whole Foods Market and Tesla.
While only a very small percentage of people currently pay for their purchases through this form of remuneration, it does pave the way for more types of decentralised transactions to occur. Moreover, as cryptocurrencies are borderless, they allow for international sales to take place without the need for exchange fees.
Additionally, being verified through blockchain technology ensures they have extra security associated with them.
6. Enhanced Customer Experience through AI
By adopting Artificial Intelligence (AI), retailers can now offer shoppers a much more personalised experience.
For instance, chatbots can assist with general product and customer inquiries 24/7. At the same time, through the use of algorithms, AI can help businesses to provide shoppers with tailor recommendations and suggestions based on their previous spending patterns, preferences and habits.
As the process is automated, it also goes a long way towards reducing human error and speeding up the delivery of the purchase.
7. Social Media
Social media platforms like Instagram, Facebook, and TikTok have become very integral parts of the promotional mix.
Many businesses now use these platforms to showcase and sell their products directly to consumers. Often, this is done through ‘shoppable’ posts or ads that allow users to make a purchase without leaving the app.
For customers, the great thing about these social media sites is that it allows them to discover, research, and purchase products all within the same app. Businesses also regularly collaborate with influencers to help drive sales.
James is the head of marketing at Tamoco
