The Future is Phygital
December 20, 2023
As with many other aspects of life, the COVID-19 pandemic affected the payments landscape in terms of the accelerated rate in which digitalization occurred. However, for many SMEs and retailers, physical interaction is still essential.
For this very reason. Today we will be talking about the ‘phygital’ concept that has emerged in the market.
It is expected that 24% of retail shopping will be done exclusively online by 2026, while 76% of sales will be made in brick-and-mortar stores, this number is somehow boosted by the fact that 30% of shoppers prefer to look and inspect a product in-store before making a decision on purchasing. This trend was affirmed by a survey conducted by GlobalData.
WHAT IS PHYGITAL?
Phygital is the combination of physical and digital aspects, which hopes to surpass shoppers’ expectations when shopping. Some phygital examples are buy online, pick-up in store, Amazon’s system of putting things in your cart and checking out with Amazon login, Walmart’s Scan & Go system, allowing shoppers to scan products in store and check out with their Mobile phones, and other similar systems and apps.
The phygital market is expected to grow past $200 trillion by 2027.
(...) crafting an effective phygital strategy becomes crucial for neobanks, traditional banks, retailers, and SMEs. Through the seamless fusion of physical and digital strengths, companies not only fulfil customer expectations but also maintain a competitive edge in a constantly changing marketplace.
Physical kiosks at banks are also a phygital strategy, these can quickly issue cards, allow customers to make utility payments, request loans or consultations. This helps banks reduce the traffic to their employees, therefore reducing operational costs, and helps attract tech-savvy customers.
For SMEs, phygital can help by allowing customization and therefore offering personalized experiences, this includes consolidating orders and payment choices. If chosen right, the appropriate technology will allow consumers to choose their favorite payment methods and use their preferred purchasing channels.
75% of consumers expect personalized services, and 75% and more admit they are frustrated when these expectations are not met.
To learn more, watch the webinar where seasoned industry experts discuss this trend.
Want to learn more? Check out Payments Cards and Mobile’s full write-up here.
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