the new payment way: frictionless

The Up-and-Coming Digital Payment Method

In the past several decades, credit cards have become as ubiquitous as cash in a customer's wallet. Now, the digital revolution which has swept the business world is set to create a third major player in the payments game - the frictionless one. This up-and-coming digital method made possible by the technological advancements of QR codes and Near Field Communication (NFC) is about to change it all. 

The change comes with the rise of mobile and similar payment options already available to consumers in all corners of the world. Mobile payments alone are projected to reach 1 trillion U.S. dollars by 2019

Frictionless Payment, Frictionless Life

The premise of frictionless payment is simple: enter a bookstore or a coffee shop, take a book or a cup of ready-made coffee, and then simply scan the QR code with your smartphone to charge the item to your payment account. 


Frictionless payments have also significantly positively affected e-commerce, with various businesses and service providers allowing their customers to order and pay online, after which purchased items are delivered to their doorstep. These applications range from buying clothes and books to buying food - and also allow the tracking of each stage of an order's preparation and delivery.

Examples abound, and include some commerce giants such as Amazon or Uber. Brick-and-mortar Amazon Go stores allow customers to simply walk out with items they want to purchase while frictionless payment takes place via their mobile phones as they leave the location. 

Uber's customers link their credit card accounts to the service's mobile app which tracks the rides they take and then automatically charges the fare to their account as soon as the ride is over. Alibaba's Alipay Wallet platform can boast over 520 million users who utilize its 'scan QR code at checkout to pay' approach; Alibaba also partners with Hema Supermarkets, allowing their customers to frictionlessly pay for groceries and fresh food.

Personalization of Customer Experience

Customer experience is becoming an increasingly important factor in shopping, with people looking for ease, convenience and an enjoyable experience on their way to a successful purchase. Frictionless payments are doing their part for this cause through personalization: registering purchases and customer preferences, which can then be used to offer them personalized product pages, discounts and offers. This data can also be used to customize rewards systems and perks via loyalty programs as well as aid brick-and-mortar staff to offer a better service to their customers.

Frictionless Future

Technology is moving towards allowing payment using 'wearables', meaning paying via items ranging from clothing to watches to jewelry that contain frictionless payment hardware.

But the technology that allows frictionless payments has uses far beyond it, as in, for example, Singapore, which utilizes biometric passports for all its citizens, eschewing manual checks and stamping at immigration checkpoints for automated passport and fingerprint scanners. This also benefits non-Singaporeans, reducing queue lengths at airports and checkpoints. 

Frictionless payments have not only almost conquered e-commerce and retail, but are now moving toward offering smoother and efficient services to customers in other industries, ranging from healthcare to education.

Mercury Processing Services International is Frictionless

Our clients are already equipped with all sorts of contactless cards, mobile stickers and NFC enabled phones. Wearables are the next step and we are working to make the same kind of ease of use for e-commerce. We are committed to providing our customers with the best user experience.