Digital Receipts and Data Security: What You Need to Know

As digital receipts continue to gain traction in the retail sector, addressing concerns around data privacy and security is crucial for the successful implementation and adoption of this dynamic tool.

Our latest consumer survey has revealed that security concerns may impact customers’ adoption of digital receipts. So let’s delve into these findings, explore best practices for ensuring data protection and provide actionable strategies for building consumer trust.

Consumer security concerns over digital receipts

Our recent survey, conducted in the UK and France, highlights the need for retailers to tackle consumers’ security concerns to boost digital receipt adoption:

• Data Privacy: in the UK, 29% of respondents cited a lack of understanding around data privacy concerns as a primary reason for not using digital receipts, and 18% of French respondents shared this view. These figures underscore the need for retailers to address privacy concerns and educate their consumers.

• Consumer Assurance: 42% of UK consumers and 41% of French consumers indicated they would be more inclined to choose digital receipts if assured their email addresses would only be used for sending receipts, not for marketing purposes. Transparency is essential in overcoming reluctance.

So, how secure are digital receipts and what about marketing consent? 

In reality, consumers do not need to be concerned about their data privacy when it comes to digital receipts. As long as the solution is implemented properly by the retailer and a reputable digital receipts provider, they are stored as securely as any other customer data captured via POS systems, loyalty programmes and eCommerce platforms, with all the best practise encryption, security protocols and access controls.

Contractually, the retailer remains the data controller, while the digital receipts provider acts simply as the data processor.  As such, the retailer owns the data and the digital receipts provider can only use the data in accordance with the contract to deliver the service and nothing else. The digital receipts provider should also offer a flexible data retention policy that permits the retailer to delete the data stored by the provider whenever they choose. 

In regards to consent, a digital receipt cannot be sent without the customer asking for one and either providing an email address / mobile number or scanning a QR code or NFC reader. This permits the retailer to send the digital receipt to the customer, but a retailer cannot then use the same customer data to opt them into marketing communications automatically. 

To be opted-in to marketing communications, retailers must ask separately, allowing the customer to confirm yes or no. There are several ways in which retailers can do this in-store:

• While helping customers in-store, sales associates can ask if they would like to receive marketing communications and customers can sign up using a tablet device.
  
  
• Ask customers at the checkout after they have been offered a digital receipt.
  
  
• Place an ‘opt-in to marketing’ checkbox within the digital receipt itself.

By explicitly requesting marketing consent and offering clear opt-in options, retailers reassure customers about how their data will be used and alleviate any concerns of spamming. 

Best practices for ensuring data privacy and security with digital receipts 

To relieve security concerns and build consumer confidence in digital receipts, retailers can implement the following best practices:

1. Transparent data usage

• Clear communication: inform customers that their email addresses will be used solely for sending digital receipts. Use visible signs at checkout or pop-up messages during email entry to ensure transparency.
  
  
• Data policy transparency: provide clear information on how customer data is used; addressing concerns about data misuse can boost confidence in digital receipts.
  
  
• Accessible privacy policies: make privacy policies easy to find and understand, clearly outlining how customer data is protected.
  
  

2. Customer education

• Staff training: train checkout staff to answer questions about digital receipt security and the use of customers’ personal data.

• Control and choice: allow customers to opt-in / out of communications and manage their marketing preferences. Offering straightforward instructions can increase consumer trust and willingness to adopt digital solutions.

3.  Customer journeys that reduce security risks:

• Receipts via QR code: 
  by implementing QR code customer journeys to receive digital receipts, you not only save time at till and reduce sales associates’ typos when customers spell out emails or phone numbers, but you also reduce the security concerns of customers’ details being overheard by other shoppers. To learn more about various digital receipt customer journeys,  click here.

Lost opportunities

Results have revealed that consumers want to use digital receipts so failing to build trust around your use of their data can lead to missed opportunities. As more consumers prioritise data protection, addressing these concerns head-on is vital for maximising adoption and realising the benefits of digital receipts for consumers and retailers. By implementing strong security practices and maintaining transparent communication, retailers can enhance trust, increase adoption rates, and improve overall customer satisfaction.

Next steps for retailers

Ready to take the next step in deploying a secure digital receipts solution? Our 2024 reports provide in-depth analysis and actionable insights into what customers are looking for from a convenience, personalisation and sustainability perspective.

Contact our team to discuss integrating these best practices into your retail strategy and download our detailed reports for France and the UK.