Exploring the transformative role of digital payments in APAC’s sports and entertainment sector, with fans and consumers demanding convenience, choice and cybersecurity in their retail experience.
In recent years, high-profile concerts such as Taylor Swift and Coldplay have not only captivated audiences but also significantly boosted local economies in the region. In Singapore, for instance, the Monetary Authority of Singapore (MAS) estimated that these events generated over S$450 million in tourism receipts, underscoring Singapore and the rest of South-east Asia’s potential as a premier hub for major events.
But for retailers aiming to capitalize on this influx of tourism dollars and set new standards for fan experience and operational efficiency, the ability to deliver personalized and frictionless experiences across touchpoints in the shopping journey is essential.
Adyen research underscored the imperative for retailers to offer a range of payment options or risk losing sales, revealing that 56% of global consumers are ready to abandon a purchase if their preferred payment method is not available.
Consumers across Asia Pacific today demand convenience, efficiency, choice, and security in their shopping experiences, making digital payment technologies the key to meeting these expectations. We find out more in this interview with Warren Hayashi, APAC President, Adyen.
What are the key challenges in digital payments for sports and entertainment events, especially in APAC?
Warren Hayashi (WH): Asia Pacific (APAC) is home to nearly 60% of the world’s population. Unlike regions like Europe where a Digital Single Market strategy is pursued, APAC is a very diverse region when it comes to payment preferences. Retailers looking to gain the share of wallets of the consumers should bear in mind that each market has their own unique, preferred way of paying.
Managing the payment preferences of tourists and having the capability to handle high transaction volumes during high-traffic periods like sporting and entertainment events are vital. As a business, the last thing you want to do is to frustrate your customer by not offering their preferred payment method during the ticketing experience, so much so that they abandon their cart altogether.
In fact, the business opportunity doesn’t stop at the ticket office. For the host country, it’s an opportunity to engage international tourists with peripheral activities. In fact, Adyen’s research found that 21% of retailers in Singapore are leveraging sporting events like the recently concluded Olympics and the F1 season to drive sales.
In practice, this could mean the sale of fan merchandise, exclusive fan experiences, or even food and drinks during half time at a sports event. Like locals, tourists today are more likely to prefer cashless payments. As a retail business, you need to make sure your physical payment terminals are quick and reliable to handle the volume of orders, while offering their preferred payment methods to these tourists.
Working with the right fintech partner will ease the operational burden on retailers, allowing them to focus on their core products and services while providing a seamless customer experience.
What are fans and consumers looking for when it comes to digital payment experience? How should businesses balance seamless convenience with trusted security?
WH: While international fans and consumers want to be able to explore retail stores and purchase the latest apparel, memorabilia, and limited-edition merchandise with ease, they are expecting retailers to employ strong security measures that safeguard sensitive consumer and payments data. This is where contactless payments shine.
Near-Field Communication (NFC) technology has made its mark in the payments scene, most prominently by allowing purchasers to make quick and contactless payments using any NFC-enabled mobile or device. A wireless connection is established by holding the device near an NFC-enabled payment terminal and exchanging encrypted payment information.
This means that at a sporting or fan event, fans can authorise payments through mobile phones and wearables, with fingerprint scans, facial recognition, or passcodes, eliminating the need for physical cash or card insertion that takes up more time and risks attendees missing a part of an event, losing cards, or worse, getting robbed.
How can event organisers and retailers leverage digital payment technologies to drive exceptional fan and consumer experience?
WH: One way event organisers and retailers can elevate fan and consumer experiences would be through the implementation of contactless payment options such as Tap-to-Pay and QR codes. These offer a streamlined checkout process, allowing attendees to complete transactions swiftly without handling cash or enduring long queues.
Offering a range of payment options that cater to different preferences will ensure that fans can use their preferred methods to pay, which further improves their overall experience. For instance, providing WeChat Pay or Alipay offers businesses the ability to earn Chinese tourist dollars. This is crucial as Chinese shoppers tend to be big spenders, spending as much as 9x the industry average transaction value in the luxury sector during the recent Olympics. Additionally, in the event of an unforeseen circumstance where cancellations or refunds need to be made, digital payment technologies can help facilitate a swifter refund process, by automatically returning the funds to the payments card used for the purchase.
By focusing on convenience, personalisation, and efficiency, event organisers and retailers can enhance engagement and satisfaction, ultimately driving a more exceptional fan and consumer experience.
