The Rise of New Retail: 3 Ways Autonomous Retail is Shaping the Future

Before the pandemic took hold in 2020, the unattended retail industry sat at a tipping point. A once cash-based industry that started in vending, the shift toward autonomous retail had been driven by widescale acceptance of cards and mobile wallet payments, not to mention by consumer expectations for digital payment solutions. This, in turn, enabled retailers to streamline their business operations from payments to delivery. Now, thanks to the pandemic tailwind driving consumers and retailers to seek and expect autonomous experiences in every retail setting, the line between unattended retail and traditional retail is blurring. Below are three ways autonomous retail is shaping the future, and giving rise to “new retail.”

Disintermediation of Credit Cards

Retailers realize that the key to growing their business is engaging their customers. As the world rapidly moves from person-to-person engagement to an unattended experience, finding ways to know the customer becomes critical. Credit cards have long provided the consumer with an easy way to pay that they always carried with them. However, I believe we will begin to see the disintermediation of credit cards in the next few years. The move away from cards may happen much quicker than the move away from cash. Alternative forms of payments will begin to take over, including Venmo, PayPal, Zelle, crypto and brand loyalty programs which allow payment in points, both of which will require mobile payment adoption across retail brands and stores.

Emergence of New Retail Settings

Labor shortages which started during the pandemic aren't going away, and retailers will look to close this gap by adopting more autonomous solutions. This will evolve into greater usage of kiosks (think of machines at the airport where travelers can purchase headphones, neck pillows, or even — in some cases — high-end brands) as well as the adoption of next-generation point-of-sale (POS) systems that can accept all forms of payment through a frictionless, touchscreen experience. These next-gen experiences, often referred to as micro markets, are going to be embraced in new settings where they have never been before. We're already seeing micro markets pop up in residential buildings, hotels and airports where travelers can quickly shop, scan and pay, all without speaking or seeing a single human being.

Future-Proofing and Modernizing Solutions

During the pandemic, retailers that didn't have a robust answer for autonomous retail experiences or, just as worrisome, offered an outdated POS experience likely felt the pinch to their bottom line. We're seeing greater flexibility around purchasing, especially for unattended retail business owners, as societal needs continue to drive expectations for a different experience. The phone or mobile device will be the center of this universe and will drive consumers’ power in the equation higher than it has ever been.

As such, the days of POS technology lasting five years to 10 years are over. Retailers are looking for solutions that can pace with customer expectations for autonomous experiences, meet evolving payment regulations, and essentially future-proof their business. Technology and service solutions that make it easy for retailers to keep up with hardware technology without a big capital outlay are going to become the industry standard. Artificial intelligence-driven merchandising and consumer engagement will be the base level to drive this experience, and will ensure that a location has exactly what the customer wants when they want it. A modern POS will provide robust information like nutritional facts, personalized advertising, and even polling, while accepting the widest-to-date range of payments.

Autonomous retail has never been more relevant, and retailers that are early to embrace new innovations, whether it be a POS within their locations or at the distribution level, will be able to keep pace with societal shifts toward these experiences. The great news is embracing this technology will also result in increased efficiencies, improved margins, and an overall better customer experience.

Sean Feeney is chief executive officer of Cantaloupe, Inc., a digital payments and software services company that provides end-to-end technology solutions for the unattended retail market.