How do you convince users to adopt a new payment system?

In my experience, the value prop of new payment methods centers around 3 key factors: convenience, security and cost effectiveness. These factors determine the adoption rate of new payment systems both for consumers and businesses. A perfect example for the successful implementation of a new payment system is the instant payment method PIX in Brazil. Since its launch in October 2020, more than 150 million consumers have adopted the payment method.

Incentives and rewards certainly contribute to the adoption of new payment methods but they can hardly be seen as decisive factors for the success of a payment system. In my opinion, more important than incentives or rewards are factors like the easy access to a certain payment method and its acceptance rate by merchants and businesses in a given market. The easier (as in convenient + secure) it is for consumers to start using a payment method and the more incentives (i.e. cost efficiency, settlement speed, etc.) there are for merchants to offer the payment method, the higher the adoption rates will be.

Clearly communicate the unique value and benefits of the new payment system, such as enhanced security, convenience, or cost savings. Illustrate how the new system can streamline processes, save time, or improve the overall user experience.

I agree that a simple onboarding process is a crucial success factor. An easy onboarding and/ or implementation ensures faster adoption rates. Highly successful payment methods, like Ideal in the Netherlands or Pix in Brazil are developed in a way that ensures full interoperability for providers (any provider that integrates and offers the payment method uses the same technology standard) and platform ubiquity for end users (e.g. technology runs seamlessly on iOS and Android from day 1)

The level of trust in new technologies varies greatly across different regions in the world. Trust in payment systems has a lot to do with trust in the financials system and actors (i.e. banks, governments), familiarity with technology and ultimately with the level of financial inclusion of a given society. Trust is typically built rather slowly initially (as it many times relies on word of mouth, rather than on expensive marketing campaigns) and eventually reaches a tipping point in building momentum once a critical mass adopts the system. Nevertheless, constant communication and information by trusted entitites (e.g. your bank, your preferred retailer, etc) are needed to support the ramp up.

Provide comprehensive educational materials and training sessions to familiarize users with the features, functionalities, and benefits of the new payment system. Offer tutorials, guides, and interactive sessions to demonstrate how to use the system effectively.

Ensure the new payment system seamlessly integrates with existing platforms and technologies to minimize disruptions and transition challenges and Highlight how the integration will simplify tasks and improve overall workflow efficiency

The experience of payment needs to be so seamless and secure that it is as good as nonexistent, a means to an end, a background process that enables the user’s end objective, rather than being a job by itself. That’s the CVP. End consumers don’t think as much about “payments” as an objective by itself, unlike practitioners like ourselves.

Highlight the customizable features and flexibility of the new payment system that cater to diverse user needs and preferences. Emphasize how users can personalize their payment experiences to align with their specific requirements and preferences.