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James Hervey, EVP and Head of Petro, took center stage at the Verifone Customer Forum to spotlight how innovation is transforming the petro industry. This article dives into his key insights from the event, exploring strategies for driving connected experiences and meaningful growth.

Innovation is essential to driving business growth and improving customer experiences. This is particularly true in the petro industry, where retailers have to provide reliable, trustworthy payment processes at various touchpoints.

Still, many companies fall into a common trap: Innovating merely for the sake of change or competitiveness. While it can be tempting to chase the latest tools and technologies, especially when it comes to payments innovation, doing so without a clear purpose or roadmap can lead to wasted budgets and confusing customer experiences.

Instead, businesses should prioritize meaningful innovation—strategic changes that deliver real business value and concrete results. From fraud detection to loyalty programs, there are many next-level solutions that retailers can use to deliver real value for their customers.

Let's unpack the importance of payments innovation for fuel retailers, explore specific examples of meaningful initiatives for petro and convenience businesses, and outline some strategies to help build your own innovative systems for sustainable growth.

What is meaningful innovation?

According to McKinsey, innovation is "the systematic practice of developing and marketing breakthrough products and services for adoption by customers."

That said, it's not enough to introduce new products and services and hope they fit in seamlessly with current processes. As Boston Consulting Group reported, 83% of business leaders say innovation is among their top three priorities, yet only 3% were actually deemed ready to deliver on those priorities. In fact, only 12% said their companies had made strong links between business and innovation strategies to deliver real impact.

Those 12% were using meaningful innovation. This involves making purpose-driven decisions that transform customer experiences and generate measurable results. A petro retailer, for example, might drive meaningful innovation by updating their point of sale (POS) system to enable contactless payments and increase conversions in-store.

Why is meaningful innovation essential to business success?

Meaningful innovation doesn't just help businesses keep up with the competition, it also gives them the tools to raise the bar for the entire industry and develop new business models for long-term success.

According to McKinsey, businesses say their ability to innovate is the most important strategic factor for generating growth. The second-most important factor? Building relationships with customers.

For petro retailers, specifically, meaningful innovation can help:

Meet changing customer expectations

Today's fuel customers expect fast and efficient experiences—from the moment they drive up to the pump to the second they pay. According to a study from YouGov, more than two in five consumers say they choose their preferred gas stations based on their quick "in and out" process. After the cost of fuel, this is the biggest differentiator for customers.

To deliver these speedy experiences, fuel retailers can offer contactless payment options through digital wallets and mobile apps as well as self-checkout solutions. According to a study by Incisiv, 79% of retailers say self-checkout provides a better customer experience, and 51% noticed improved operational efficiency in-store.

Increase revenue

Beyond just offering fuel, petro companies have an opportunity to diversify their revenue streams and cater to convenience store customers. Sales inside gas station convenience stores grew from $278 billion in 2021 to $328 billion in 2023—an 18% increase.

As electric vehicle (EV) usage continues to grow, fuel retailers will need to continue finding alternative ways to meet their bottom line and drive sales, and it's never too early to start seeking out that innovation.

Mitigate fraud risks

Fraud is on the rise, putting businesses and customers at increased risk of data breaches, identity theft, and other payment scams. According to the Federal Trade Commission, consumers reported losing more than $12.5 billion to fraud in 2024—a 25% increase from 2023.

Fuel retailers can help build trust among customers by adopting innovative fraud protection solutions. As Dover Fueling Solutions found, nearly 80% of consumers value payment security most when making purchases at gas stations and convenience stores.

Enhance customer loyalty

Many gas consumers choose their preferred fuel brand based on their loyalty program. By building innovative, customer-focused rewards programs, fuel retailers can differentiate themselves in a crowded market and drive repeat sales.

What are the biggest challenges of payments innovation for petro retailers?

It can be difficult for petro and convenience retailers to innovate. Customers rely on them for quick and reliable access to necessities, like fuel and food. As a result, many petro retailers may be hesitant to change the way they operate and introduce new payments processes, as they may risk disrupting the business and losing loyal customers.

By comparison, the world's most innovative companies—like Waymo, NVIDIA, and BYD—are deeply entrenched in the technology space. Their audience craves innovation, and their businesses are built to churn out new iterations of their offerings every few years. Petro retailers haven't always had that luxury.

Some of the biggest obstacles preventing petro retailers from driving meaningful innovation in payments include:

• Changing compliance regulations: Retailers have to keep up with evolving regulations, like Payment Card Industry Data Security Standard (PCI DSS), which helps protect customers' credit card information against data breaches and fraud. Staying up to date with these regulations can be complex, but failing to comply can result in fines or diminished customer trust.
• Technical complexity: With so many disjointed vendors involved, it can be tough to integrate payments systems, gain approval from oil companies to adopt new technologies, and create a unified experience between the pump and the convenience store.
• Costs of new systems: Modern POS systems can be expensive. It can also be difficult to negotiate costs and get transparency about fees, especially if you're buying from third-party resellers.
• Unreliable customer service: Even with their current systems, fuel retailers may have trouble accessing unified, 24/7 service, so when issues with their payments systems arise, they may be unable to get immediate help and risk losing sales—a scenario that's best avoided.

How can you avoid innovation fatigue?

Another common obstacle to change is innovation fatigue. This occurs when business leaders get burned out from the constant pressure to optimize strategies and develop new ideas. As a result, they might lose motivation, resist change altogether, and get stuck using outdated processes and tools.

Again, it's important to consider meaningful innovation here. Instead of piggybacking on every new trend and playing catch-up with competitors, give yourself the time to research and rationalize each new strategy. Research your customer behaviors, consider your resources, and thoroughly evaluate any strategy before you invest in it. Taking this mindful approach to innovation can help you avoid burnout and make more informed decisions for your business.

What does payments innovation look like for petro and convenience retailers?

Even in the face of these challenges, petro retailers shouldn't be left behind while other industries enjoy technological advancements—especially when it comes to processing payments and driving sales. They should be able to harness new payments tools to improve customer experiences and fuel growth.

To that end, petro and convenience store operators can drive meaningful innovation by:

Upgrading to an integrated payments system

Connect your POS hardware and payments software to increase efficiency and gather real-time data from every transaction. Use this integrated system to reach customers with their preferred payment methods, be it credit cards or digital wallets.

With cloud-based integrations, you can also sync data between other services, like your inventory management and accounting platforms, further optimizing efficiency. Additionally, upgrading to an integrated payments system can mean better PCI DSS compliance and enhanced customer service.

Verifone Commander Payments, for example, is an all-in-one solution for all of your POS and payment needs. Built specifically for fuel and convenience retailers, it's certified across all major payment networks and oil brands for seamless integration.

Boosting security to minimize risk

Use encryption and tokenization to securely handle customer payment information and reduce the risk of data breaches. This helps ensure that cardholder data is safe during each transaction and securely stored for future payments.

Offering intuitive loyalty programs

Make it easy for repeat and long-time customers to pay using loyalty points via an app, at the pump, or in store. Also, use your integrated payments system to provide personalized loyalty offers and product recommendations at checkout, which can increase average order values.

Enhancing compliance

Work with your payments provider to ensure all systems are automatically updated to maintain PCI compliance with the latest regulations. This way, you can keep customer data protected, build trust, and avoid hefty fines for compliance issues.

Using AI-powered fraud protection

Leverage AI to monitor transactions and detect fraudulent payments based on specific parameters. By doing so, you can ensure verified transactions go through without a hitch, while risky transactions are flagged in real time, before the damage is done.

How to fuel innovation for your petro business

Now that you know what meaningful innovation looks like for your industry, you might be wondering what it looks like for your business, specifically. After all, you don't have to implement each of these services and initiatives at once. You should consider the unique needs and behaviors of your customers and the resources at your disposal.

If you're planning your next innovative move, ask yourself these questions first:

What problem is this initiative going to solve? What processes will it improve?

Example: An integrated payments system will make it easier to process payments, gather customer data, and troubleshoot issues.

How will implementing this initiative impact my customers? Will there be a learning curve, or will the transition be seamless?

Example: Customers will enjoy a faster, smoother checkout experience, with options for using self-checkout, fleet cards, and loyalty perks. The POS will be intuitive for customers to use.

How long will this initiative take to implement? Will there be any downtime for my systems or operations

Example: The integrated payments system may take a few hours to set up, but it will save time and money in the long run by automating processes.

What level of resourcing does this initiative require? What is the projected return on investment?

Example: An integrated system offers bundled pricing for cost savings and affordability. It will pay off in increased sales and reduced customer churn.

Can I scale this initiative easily across multiple locations?

Example: Since the system runs on the cloud, it can be rolled out across locations, syncing valuable transaction data and breaking down silos between businesses.

How often will this program or technology need to be updated? How easy will it be to make these updates?

Example: The payment processor can handle software updates remotely to keep the system running smoothly.

Are there support solutions in place to help service this technology and troubleshoot issues as needed?

Example: Your integrated payments processor has a team of specialists on call to make sure you're getting the most from your service.

With these questions, you can assess each innovative strategy to ensure it will improve results and drive meaningful change for your business.

The future of payments innovation in the petro industry

Innovation is the key to business growth, but not all innovative strategies are equal in value. Business owners must make sure each initiative aligns with their overall goals and delivers measurable results. Remember that the most impactful changes solve real problems, contribute to long-term value, and make life easier for your customers. That's why innovation quality matters much more than speed or volume.

As you look to update your payment processes to better serve your customers, think critically about your next steps. Consider high-impact upgrades, like integrated payments systems and AI-based fraud protection, and thoroughly assess new offerings to help bring your business into the future of payments innovation.

Ready to drive meaningful innovation that improves customer experiences at scale? Verifone Commander is an all-in-one payments solution built to foster petro business growth.