Nov 20, 20184 min read

The future of payments: 4 takeaways from Money20/20.


With nearly 12,000 attendees, Money20/20 2018 brought together visionaries and innovators who are inventing new ways to spend, borrow, and share money. We had the opportunity to learn about the latest consumer trends, share big ideas, and even join industry leaders in launching new products. For those who weren’t able to make it to the hub of the payments universe in Sin City, we’ve compiled four main takeaways from the event.

1. Consumer experience is key

We’ve heard it over and over again, but this year’s speakers couldn’t stress the point enough: focusing on the consumer experience is essential. Retailers are striving to serve consumers better, more personalized transactional experiences while new technology is creating the convenience customers crave.

Klarna joined the Give-Consumers-What-They-Want Party with the launch of our new payment option Financing. Shoppers can use Financing to pay for purchases in four equal installments using their debit or credit card. Premium leather crafters Rancourt & Co is the first U.S. merchant to get in on the trend, letting their customers step out in style with hand sewn leather shoes they can pay for over time, and without interest.

Klarna CCO Michael Rouse sat down with Cheddar’s Tanaya Macheel at Money 2020 to talk about our new payment option and what it means for consumer convenience. Financing is a direct response to the preferred payment means of the 67% of U.S. millennials who don’t own a credit card. It offers them a way to increase their purchasing power without the hassle of a credit agreement or long-term commitment.

Offering consumers the payment methods they want is the ultimate form of convenience. Creating affordable terms that are more favorable to today’s consumers is enhancing the online customer experience tenfold.

2. Retail is being redefined

The retail experience is continually evolving. Today more than ever, it’s shifting to accommodate new consumer behaviors. Consumers are discovering and purchasing products differently than they were even just a few years ago.

We know that more people are plugged into their devices and spending time on social media, so it makes sense that retailers are leveraging social commerce to reach their audience and increase sales. But as powerful as online shopping is, it’s not the end-all-be-all of retail.

Much of the Money2020 conversation revolved around more consumers choosing an integrated, omnichannel shopping experience over a traditional, one-channel approach.

H&M is an excellent example of implementing an omnichannel retail strategy. Through a partnership with Klarna, the international retailer will further integrate its digital and physical stores to deliver a seamless, personalized and engaging shopping experience that allows customers to choose how they want to shop, wherever they are.

3. Mobile is the future

More people are spending time on their devices and mobile is changing every aspect of our lives. Caesar Sengupta, Vice President of Product Management at Google, believes that soon, mobile phones will be the only way consumers get online.

The way retailers approach their digital strategy should incorporate technology that enhances the buyer’s journey on a mobile device. Retailers should look at mobile as an opportunity to create a more personal experience between themselves and the shopper. Offering personalized payment methods and smooth checkout experiences through unified commerce will address this growing movement.

4. AI is transforming e-commerce

Artificial Intelligence (AI) is driving a global transformation that it is touching every aspect of our world today. At Money20/20 2018, speakers took to the stage to discuss how it’s influencing the customer experience.

For retailers, AI provides valuable insights into online shopping behavior, collecting data that shows how shoppers are engaging on a site and how they are paying for products. With this information, brands can better adapt their strategy to create a more efficient and effective customer experience.

For consumers, AI is allowing retailers to share personalized offers to enhance the buyer’s journey. Analyzing a digital trail of past purchases can help retailers understand shopper’s behaviors, patterns, and expectations, leading them to better serve their customers.