Updated on December 17, 2018
The CEO of Paypal, Dan Schulman recently said that the retail industry is going to be changed by mobile device and would eventually change the way customers think about checkout.
This has already started by bridging the gap between online and offline. People usually think about e-commerce and in-store but Paypal CEO, Schulman said these boundaries have been erased by mobile in an event which was hosted by the New York Economic Club.
So as to buttress this point, he illustrated a case whereby a mobile phone was used to place a food order. “If you order a Subway sandwich on your mobile device, customize it and pay for it immediately, you can then proceed to the shop, skip the line and then pick it up, you can also tap your phone so as to pick the reward point, and this kind of transaction can be regarded as an online and offline transaction.”
Omni-channel which implies a seamless approach to shop across various channels is what everyone would turn to. You have already seen a store starting up after the closure of another. This is because we are over-capacitised when it comes to physical retail. About 30% of the malls in the United States are dead or dying already and the list of those who are closing stores can be read to the audience.
This does not imply that there is a reduction in retail sale, but there is a shift in the way people shop. For instance, checkout lines can be a past event very soon.
Amazon is currently testing its Amazon Go store, which is a convenience store where there is no checkout or lines. Those that come for shopping can scan an app and then pick up whatever they want, after which they can work out with a receipt which show up on their phone, there is a co-operation with Mastercard and some other similar trials are made available.
Paypal CEO, Schulman likewise noticed the number of stores which does not have shopping carts or checkout lines in China.
Checkout can be referred to as olden vestigial organ which will disappear very soon, he likewise said that the retail shops in china are like a Hollywood set. It can be likened to a bag which is moving around because when you order it, it would be shipped to your location within 30 minutes.
Schlman anticipate that the mobile will change the retail as well as everyday consumer behavior. “My thought is that the app will transcend only the payment, but Schlman said it will tie into all other activities as well.”
He observed that the Chinese consumers are making use of WeChat Pay, payment apps as well as AliPay on regular basis.
These apps are opened at about 30 to 40 times on daily basis and they ensure everything is done on them. He also said that the average Paypal customer is 30 to 40 times a year but they do 30-40 times a day. Thinking about the way mobile payment finds its place in everyday life.