Smart Checkout

In the everyday life of every consumer, the checkout process often becomes the “inevitable evil” at the end of a purchase: long queues at the checkout, stressed and overwhelmed cashiers, processed payment processes are still part of the shopping experience especially during peak hours.

For retailers, checkout is often an inefficient, difficult process that generates high operating costs; customers dissatisfied with the long queues and missed opportunities to retain them by providing a positive and fast shopping experience at the end of the purchase process.

On the other side of the coin, online shopping experiences have significantly changed the expectations of customers who expect the same shopping experience on Amazon when shopping in physical stores.

New technologies and smart payments

New smart checkout technologies combine mobile devices, tracking, sensors and artificial intelligence to enable intelligent payment solutions.

They can improve customer experience and profitability, and with real-time analysis of buying behavior, they can increase conversion rates and identify specific customer segments.

Using smart checkout systems, retailers can reassign checkout staff to customer service or other important processes within the store.

Additional benefits of these solutions include more effective data-driven inventory management, as well as personalized marketing opportunities. The use of technology for payment processes can become one of the most important success factors for retailers to win and retain customers and become a source of valuable information.

Technologies and smart checkout methods

There are different types of smart checkouts. We have analyzed some solutions that differ from each other in terms of costs, technical complexity and added value for the company.

Contactless payments. It is not the most innovative system because this payment method has already been in use for some time in many countries. Customers simply place their payment card next to the card reader and complete the checkout in seconds. With virtual cards, customers can also pay with their smartphone and approve the payment, for example by verifying biometric parameters.

Autonomous spending. The solution is relatively simple, fully mature and used by numerous leading chains on the market. Customers scan their products on a terminal and pay via smartphone or conventional payment methods. The advantage of this solution is a relatively simple implementation process. However, their impact on improving the overall shopping experience is limited: there may still be long queues and customers still have to interact with cashiers.

Purchase via a mobile device. Often referred to as “Scan&Go”, this method is often used by retailers in food chains. Customers can scan products with the app and checkout via smartphone.

Smart shopping cart: In this solution, traditional shopping carts are integrated with a scanner and a tablet. The smart cart allows customers to scan items and checkout directly from the cart. Tablets also provide customers with additional and relevant offers and promotions based on purchase history. The cameras in the shopping cart recognize which products are placed in the shopping cart and can also be used to recognize which products are out of stock and inform staff.

Payment with biometric data: A relatively recent checkout method that uses fingerprints or facial recognition. Critical factors of this technology include customer acceptance for face and credit card registration, technical accuracy, and compliance with data protection regulations.

Automatic checkout and checkout: The best-known example of “Grab&Go” checkout is the “Amazon Go” store. Today, Amazon operates about 15 of these automated stores and plans to open a total of 3,000 by 2021. “Amazon Go” is typically a small grocery store employing “sensor fusion” technology. Customers access the store via the “Amazon Go” app. The app automatically recognizes which items have been placed in the shopping cart. When customers leave the store, the payment is processed automatically.