Position paper
Payment has always been an important part of the consumer journey in retail. The Nordics are on the path towards a cashless society, where regulation and new technology drives the pace of the change. But as complexity increases, and new players and innovation thrives, retailers are forced to take a stronger grasp on the surrounding partners to enhance the competitive edge of retail experiences.
Upcoming Events
ons. 07. feb.Solli Plass07. feb. 2024, 09:00 – 16:00Solli Plass, Henrik Ibsens gate 90, 0255 Oslo, Norway
ons. 15. feb.Hotel At Six15. feb. 2023, 13:00 – 16:00Hotel At Six , Brunkebergstorg 6, 111 51 Stockholm, Sverige15. feb. 2023, 13:00 – 16:00Hotel At Six , Brunkebergstorg 6, 111 51 Stockholm, SverigePayment has always been an important part of the consumer journey in retail. During the era of digitization, where shopping related tasks are being included in the digital consumer journey, the complexity increases and we as retailers must take a stronger grip on the surrounding partners.
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Upcoming Events
- ons. 07. feb.Solli Plass07. feb. 2024, 09:00 – 16:00Solli Plass, Henrik Ibsens gate 90, 0255 Oslo, Norway
- ons. 15. feb.Hotel At Six15. feb. 2023, 13:00 – 16:00Hotel At Six , Brunkebergstorg 6, 111 51 Stockholm, Sverige15. feb. 2023, 13:00 – 16:00Hotel At Six , Brunkebergstorg 6, 111 51 Stockholm, SverigePayment has always been an important part of the consumer journey in retail. During the era of digitization, where shopping related tasks are being included in the digital consumer journey, the complexity increases and we as retailers must take a stronger grip on the surrounding partners.
QR and non-cardbased “tap-and-go” use-case
The Nordic Initiative Community celebrates the dynamic wave of innovation emerging in mobile applications within the retail sector.
Recognizing the mobile channel as a key strategic interface for consumer engagement, it has evolved into a pivotal platform where consumer actions are seamlessly initiated through the tap-and-go process.
Acknowledging the existing fragmented and partially silo-standardized landscape in the market for retail-friendly use cases, the Nordic Initiative is committed to addressing these challenges. The primary goal is to enhance standardization and promote best practices, fostering a cohesive environment that supports sustained innovation in the Nordic retail sector. By doing so, the initiative seeks to encourage healthy competition without compromising the opportunities for industry followers to harness tomorrow's cutting-edge commodities.
Nordic Initiative approach
By request of the retail community, the Nordic Initiative is extending invitations to participants for an inaugural meeting focused on validating facts, assessing risks, and defining collaborative objectives. This meeting sets the foundation for a strategic and actionable plan that unites efforts toward common goals.
One approach would be to invite schemes to explain plans for nordic harmonization, develop an nordic retail payment position paper and facilitate a joint roundtable with all payment schemes operating in the nordics. Phase 2 (after an revaluation) might be to move forward with a conceptual desktop implementation project, visualizing how retail might be able to operate a payment scheme in a multi stakeholder approach with nordic banks. Phase 3 would be proceeding with a limited pilot alongside the first generation of nordic retail payment scheme aligned with EU regulation and its objectives.
Limitations
Every year we facilitate billions of payment transactions and interact frequently with more customers than any other sector. This makes us by far the biggest users of payment solutions and the most important interface towards the customers. Still it is our joint experience that existing payment solutions do not support our need for providing seamless, effective and cheap services to our customers.
Billions
of payment transactions
Millions
of customers
Ineffective
Payment solutions
Halting
The customer journey
We write this paper as a call to action and an invitation to dialogue with: banks, card schemes and solution providers, other retailers that have identified the same challenge as us, regulators who want our input and innovative newcomers wanting to help!
Views on a good payment solution
No lock-in
The market must work, with no lock-in effects (different standards or other barriers that make it difficult to change vendors)
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Support different payment scenarios
Variable recurring payments. Flexible risk based payments. Different use cases not limited toPay first, buy later (Petrol), Hospitality, ecommerce, In-store, Subscription, in-app.
Purpose: Better fit for applying appropriate services to different retail scenarios
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The retailers should be in control of the orchestration of customer dialogues.
Payment providers must allow the retailer to be in control of the client relationship and the transaction data generated in the retail channel.
Purpose: Ensure all embedded service offerings are aligned with the retail brand
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Contextual authentication with the ability to be leveled up when required
The retailer needs an effective way to identify the customer. The quality of ID should be based on the situation the payment is being made, e.g. regular, small, on the run payments (buying a coffee) would require less quality of the ID than large, one-time purchases (buying a TV).
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Standardized, rich and effective APIs
APIs must support customer centric retail experience across different channels. API providers should adhere to industry standards and market best practices catered by independent
Purpose: Predictable time to market for new and changed capabilities
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Low, predictable and simple fees
The payment solutions should be cost effective across the total cost of the value chain. Leveled to actual and measurable risks. Not proportional to the amount of a basket.
Purpose: Prioritization of preferred services
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Real time clearing and settlement
The money must be on the retailer's account at the time of the transaction.
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Scheme fees
The card schemes need to lower their fees on in-store payment to reflect the low risk of the transaction
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