Erik Morton is Vice President of Strategy and Corporate Development for CommerceHub
As partnerships between retail and digital transaction companies proliferate, it raises the question: What is the motivation behind them?
The recent announcement that Walmart and Target were joining forces with Google was particularly interesting in that it signified retailers’ willingness to increase dependence on shopping and payments technology and cozy up to their biggest competitors. While puzzling at first glance, this type of partnership may very well be the recipe for success in the ever-evolving retail industry.
Retail and technology company partnerships represent a complementary combination of physical stores and bleeding edge technology, perhaps the only way to maintain the consumers’ loyalty and attention in the age of digital payments.
Walmart and Target are among the big retail chains that have turned to collaboration with fintechs to reach an emerging market of tech-savvy shoppers. Bloomberg News
Since no company, not even Walmart or Amazon, has mastered this recipe to date, technological innovation and partnerships have quickly become a necessary means for success. Since e-commerce and online payments’ inception, the state of the retail industry has been fluid, always facing new challenges and battles.