The UK high street has faced seismic shifts over the past couple of decades, including the rise of online shopping.
With customers now able to enjoy smooth, streamlined browsing from the comfort of their home, city centres have had to refocus their strategies to compete.
One of the ways they’re doing this is by adopting technology throughout shopping hubs to rival the user-friendly features of the online world, including frictionless payments.
What Are Frictionless Payments?
Frictionless payments are designed to remove hurdles when completing a payment and streamline transactions, creating a stress-free experience for all customers. Swift and secure, they’re the modern alternative to cash or Chip and PIN payments.
In smart city centres and frictionless retail, the most common frictionless payment systems in use include:
Contactless EMV Payments
Contactless EMV payments are now a staple of city life. Rather than inserting their payment card and entering their PIN, users can simply hold their card to a contactless payment terminal for quick, secure transactions.
This tap-and-go method of payment is used for everything from public transport to museum entry. It’s speedy, efficient, and has become a firm favourite amongst British consumers.
Mobile Wallets
Mobile wallets are similar to contactless EMV. Customers use apps on their smartphones (like Apple Pay and Google Pay) to pre-load their card details.
They then use their phones in the same way they would a contactless card, holding it to the payment terminal for a super quick transaction.
The added benefit of mobile wallets is that users don’t need to carry around multiple cards. Instead, they can keep all of their bank cards on one device for a more convenient approach to paying on the move.
QR Code Payments
An increasingly popular payment method seen across city centres is transactions via QR codes. Users simply scan a QR code on their smartphone, and they’re taken to a secure payment page where they can input their card details to complete a transaction.
While this isn’t quite so common in retail, it’s frequently seen in restaurants, cafes, and bars, enabling customers to pay independently from their table. It’s quick and gives staff more time to focus on other tasks, like taking orders or bringing food to tables, for improved service across the board.
Just Walk Out Shopping
Though not as common as contactless payments and QR codes, city centres are welcoming many shops embracing the Just Walk Out (JWO) or checkout-free approach to payments.
In these spaces, customers use their smartphones to add a payment method to the shop’s software. As they shop, cameras and sensors monitor what they pick up and put back, creating a virtual list of items they’re buying. When they’re done, customers leave the shop, and the system uses their linked payment method to enable a transaction.
From Amazon to Aldi, an increasing number of high-street names are implementing Just Walk Out technology at their city stores to trial the new frictionless payment set-up.
The Rise of Frictionless Payments
From retail shops to buses, there’s no denying the massive uptake of this frictionless payment method.
Across London’s transport system, 71% of all journeys are now paid for using contactless payments, while in Manchester, it’s the most popular way to pay for travel. In fact, almost 95% of total eligible transactions made across the UK last year were contactless, proving the monopoly that frictionless payments now hold on the market.
Currently, there’s also talk to remove the limits on contactless transactions, paving the way for frictionless payments to become the standard for all purchases across city centres and beyond.
Frictionless Payments and Customer Experience
But why are these new methods of paying such a hit? It all comes down to customer experience.
Whether buying a coffee or paying for a taxi, technology has vastly improved the speed at which customers can make a purchase. This, in turn, reduces queues and frees up more time for staff and business owners to focus on customer service.
In busy city centres, where time is at a premium, the speed and convenience offered by frictionless payments have become essential. Shoppers no longer need (or want) to pause for lengthy transactions, which makes visiting high-street shops feel more aligned with the ease of online shopping.
They also fit neatly into a wider push for connected, smart-city retail. Transactions can easily tie into loyalty schemes, digital receipts, or personalised offers, turning a simple purchase into a multi-faceted digital experience.
The lesson from city centres is one of convenience and integration. Shops must focus on quick payments that don’t just reduce queues, but streamline the entire customer experience, especially if they want to compete with the online shopping boom.
How Retail Stores Can Join the Trend
For retail store owners, UK customers expect digital payment methods. This includes small and medium-sized businesses and independent retailers, where customer behaviour is driving widespread change.
But this isn’t just about preference. Less than half of British shoppers now carry a wallet, meaning that a lot of your potential customers are leaving cash and bank cards at home. If you don’t enable alternatives, you could start losing a vast number of your audience simply because they can’t pay in your shop.
Joining the frictionless payment revolution is essential, but it’s also simple. While more advanced systems, like Just Walk Out technology, are harder to set up for smaller shops, investing in a contactless payment terminal is a breeze.
These are small devices that connect to your existing WiFi or work using data, and are purposely designed to be user-friendly. With minimal training needed and seamless integration into your processes, offering more payment options is a no-brainer for an instant upgrade to your in-store experience.
Final Thoughts
The rise in frictionless payments across city centres has taught us that this is the future of transactions. Not only does adopting the technology help you meet the expectations of today’s shoppers, but it also prepares you for the changing habits of future generations. In the competitive landscape of the British high street, that’s an advantage you can’t afford to ignore.
