Key industry statistics
- Contactless payments now account for one third of all card payments.
- In 2006, 62 per cent of all payments in the UK were made using cash; in 2016 the proportion had fallen to just 40 per cent.
- By 2026, it is predicted cash will be used for just 21 per cent of all payments, down from 62 per cent in 2006
- Online shopping is now 24 per cent of the total market share of non-food sales, up from 12 per cent in 2012.
- By 2022, spend via smartphone is forecast to account for 23.8 per cent of all online expenditure, up from 15.1 per cent in 2017.
The UK and Ireland has seen a dramatic shift in consumer purchase behaviour in recent years with 2017 the first year that card payments overtook cash purchases as the most common method of payment. Online payments continue to rise, as more shoppers go online, and new payment methods are being introduced to give consumers more options to pay. While payments companies are fast introducing new ways to pay, businesses also have to stay up to date and make sure they have the capability to accept the latest payment methods.
Growing usage of mobile and tablet devices means consumers are shopping more often on these devices. By 2022, spending via smartphones is forecast to account for 23.8 per cent of all online expenditure in the UK, up from 15.1 per cent in 2017. According to Worldpay, the average value per transaction on a smartphone is rising too, up 11 per cent in the second half of 2017, indicating that consumers are becoming more comfortable making large purchases on a mobile device. At BRS Golf by GolfNow, almost 70 per cent of our user web traffic comes from a mobile or tablet device.
In the past five years, we’ve seen the introduction of ‘digital wallets’ like ‘Google Pay’, ’Samsung Pay’ and Apply Pay’, removing the need for shoppers to carry a card. Instead, they can upload their card details to their digital wallet app, and then use their phone for contactless payments. Technology is removing barriers to make payment in instances where shoppers don’t have cash or a card to hand.
How are golf clubs impacted?
Accepting payments online or over the phone for bookings and other items in advance of visiting benefits golf clubs by enabling them to receive upfront payments, removing the risk of lost revenue through ’no shows’ and making it easier to forecast incoming revenue. Contactless payment terminals in bars and restaurants are becoming the norm with contactless payments now accounting for one third of all card payments in the UK.
Member golfers may want flexible payment options when it comes to things like membership fees. Younger members in particular may come to expect that they can pay their fees online or in monthly installments for greater flexibility. Golfers might also prefer to attach their card details to an account with their golf club, so that the payment process can be fast tracked. As a business, you want your customers to always be in a position to pay you. Offering multiple payment options maximises sales opportunities.
Looking ahead, new payments technology like ‘invisible’ payments is already being used by companies like Uber. This technology removes the need for consumers to physically engage in a payment transaction. Card details are stored on the customer’s account through the app, and payment happens automatically when a trip is complete.
Barclaycard has already trialed their ‘Grab+Go’ technology for supermarkets, allowing the consumer to scan their item in store with their smartphone, pay with a single click, then walk out of the store. A potential future scenario is golfers eating in your club restaurant post round, receiving their bill and paying via their smartphone, then walking out.
The expectations of consumers are rising as they become accustomed to technology and improved customer experiences with businesses that make the buying process fast, easy and convenient. These expectations are not industry specific, and golfers will come to expect a similarly easy shopping experience when buying goods and services at golf clubs. Using the latest payment solutions will enable golf clubs to deliver great customer experiences and ensure they capture sales by giving customers flexibility when it comes to making payment.