2 min read
Australia ranks third only behind Japan and South Korea when it comes to providing 5G services. Though there’s still a way to go in deploying 5G into the country’s rural regions, it’s already having an impact on online and mobile payments. It’s helpful for businesses to understand this 5G impact to provide faster, more secure forms of payment using the latest technology. No matter the network you’re currently using, here’s how 5G will impact business going forward.
Impact of 5G technology on consumers
For the average consumer, 5G offers numerous benefits, not least of which is its faster speeds. These are up to 100 times faster than 4G technology, on average, making it easier to upload and download content in a matter of seconds. Yet beyond media content, 5G technology offers a smoother mobile commerce experience. Your customers can be connected on the go both within Australia and abroad, from 5G towers placed around the world. It’s estimated that these will cover nearly half of the globe by 2024 for a seamless mobile experience even when travelling.
How 5G will impact business
Consumers will enjoy faster download speeds and more reliable connections. So, how will 5G impact business? It opens new doors for the retail industry with a high-tech, data-driven shopping experience. You can make your mobile shopping experience more convenient for customers based around the world, with interactive features like immersive video. Implementing these features without 5G would lead to a potentially clunky website with slow load times – a major turnoff to shoppers. Yet with superfast 5G speeds, you can create visually rich mobile storefronts with custom features.
Data gathered during the shopping experience can also be used to customise features for each customer. Offer personalised recommendations based on buyer behaviour in real-time. The speed of 5G enables a more immersive experience with virtual reality and 3D modelling. This allows customers to ‘test’ the products virtually before making a purchase.
The 5G impact on payment trends
While 5G can make the online shopping experience more innovative and feature-rich, how does this translate into payments? Fast and secure, it encourages uptake of payment methods like mobile wallets. With faster data download speeds, you can offer this payment option at checkout.
There will also be an impact of 5G technology on contactless payments, which traditionally have been prone to connectivity issues. These can be frustrating for both consumer and business, leading to failed payments and even customer churn. Contactless payments have been a growing trend since the start of the pandemic, with one survey reporting that 30% of shoppers were driven to trying them for the first time. Your business can bank on the convenience of contactless payments with 5G, eliminating pesky connectivity problems with faster speeds and a reliable 5G network.
Payment security is also an area where 5G will have an impact. Tools like facial recognition require vast quantities of data, made easier with 5G speeds. The growth of this technology will also help with biometric security features built into mobile transactions.
How to use 5G technology in your business
To maximise the growth potential that 5G technology offers, you should look at the payment methods you’re currently using. Are you offering mobile and contactless payments yet? Do you accept digital wallets? If 5G is available in your area, it’s worth looking at these types of alternative payment methods.
Another way to harness the power of faster transfer speeds is with bank-to-bank payment methods like PayTo. GoCardless is teaming up with this real-time payment services provider driven by Australia’s New Payments Platform. It allows businesses to collect payment directly from a customer’s bank account, with real-time settlement and instant account validation. Teamed with 5G, it puts infrastructure in place for faster, more secure transactions completed with a single swipe.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.