Cashless, smartphone-based payment platforms are establishing themselves as the next must-have technology for U.S. retailers, with more than half (51%) of Americans using some form of contactless payment, such as tap-to-go credit cards or mobile wallets like Apple Pay.
Now, a new cohort of cashless smartphone apps is going beyond simple contactless payments, offering new ways of paying for goods in stores. Buy Now Pay Later platforms, like Klarna and Afterpay, are a case in point.
With retail leaders like Walmart accepting payments from BNPL apps in-store, it is thought that BNPL transactions in the U.S. will be approximately 14% higher in 2024 than in 2023. Meanwhile, apps like Venmo, which enable shoppers to split bills between them, are also rising in popularity with stores like CVS and Forever 21 leading the way in supply-side adoption.
With the rise of cashless payments and innovative app-based payment services, the issue of in-store connectivity becomes crucial. As a result, over the next few years, we can expect to see more retailers addressing in-store connectivity challenges to ensure a positive and seamless shopping experience.
Meeting this objective will require implementing cellular coverage solutions, such as cellular signal boosters, which ensure robust connectivity inside stores.
Retail leaders understand that BNPL services make good market sense by offering consumers multiple ways to pay for items. They also understand that cashless payment platforms can unlock purchases that otherwise may not have been made.
According to one study, for example, 48% of BNPL users report they use the service to make purchases that don't fit within their regular budgets. From expecting additional revenue to providing shoppers with more purchasing flexibility, retailers will benefit from ensuring customers stay connected.
From a customer's perspective, the payment experience is everything. They want to make payments from their phones quickly and easily, and they expect that their applications will be available to use when needed. For this reason, in-store connectivity gaps are a problem. When cellular coverage is weak or non-existent, connectivity gaps can significantly impact the usability of smartphone apps and point-of-sale systems.
Wi-Fi is common in retail and has long been the go-to solution for providing customers with in-store connectivity. However, although Wi-Fi has a lot of strengths, it is best used for private business operations - such as inventory management or responding to emails from headquarters. This is because private Wi-Fi networks are different than the ones we use while shopping: most public Wi-Fi networks are unencrypted and require users to sign in with their personal information. This is a clear security risk. According to Forbes, 40% of U.S. consumers have had their information compromised while using public Wi-Fi networks.
Not only is cellular much more secure for public usage, but when in-building coverage is strong, it works quietly in the background to provide a seamless connectivity experience for customers. The rise of cashless payments has put an even greater spotlight on the importance of reliable cellular coverage and its impact on the shopping experience, leading many retailers to boost in-store connectivity when coverage is lacking.
The good news is that there are clear solutions to meet coverage requirements depending on the building size: an intelligent cellular coverage DAS (distributed antenna system) or smart cellular signal booster. These technologies work by collecting signals off-air and extending those signals inside a building to deliver strong, reliable connectivity.
For big-box retailers, intelligent cellular coverage DAS are the most optimal, cost-effective solutions compared to its Legacy DAS counterpart. Legacy DAS require a lengthy carrier approval process and are most suited for large venues like stadiums or airports. Intelligent cellular coverage DAS can be installed quickly, don't need carrier sign off, and offer the same coverage performance at a fraction of the price.
On the other hand, smart cellular signal boosters are best suited for small-box retailers. Perfect for gas stations, convenience stores, and mini-marts, these systems can be set up in as little as one day and deliver high performance and functionality that traditional "dumb" repeaters can't match. They are a fast and straightforward way to improve connectivity and the user experience for employees and customers alike.
By effectively amplifying cellular signals, signal boosters ensure seamless data transmission throughout stores. Doing so, they allow retailers to deliver the best possible user experience for customers while driving sales growth by enabling the widespread use of payment apps and platforms like BNPL. Modern, intelligent cellular coverage DAS and smart signal boosters should therefore be considered a key piece of any in-store digital transformation and essential to bringing payment capabilities in line with consumer expectations.