According to a new study, payment innovation is becoming increasingly important to long-term retail shop success.
Introducing new and improved payment options for their clients is a primary driver of internal innovation plans among some of the top merchants in the United Kingdom and the United States.
Many businesses stated that their present array of digital solutions is just unable to match their consumers’ rapidly changing expectations of seamless payment experiences.
89% of retail executives believe that having several digital payment methods is critical to customer retention and business success.
Choice Isn’t Just a “Nice to Have”
Larger non-grocery stores with at least 50 locations were the most likely to indicate they were expanding in-store payment options, with 65% saying they intended to introduce new ways. 55% of grocery shops agreed, as did 56% of convenience stores.
Survival requires modernization. While some payment advances are frequently used in the retail industry, the findings of the analysis revealed that which innovations to provide at checkout may differ depending on where merchants conduct business.
Seven in ten retail executives feel that preferences for certain conveniences might cause customers to prefer one retailer over another, but the in-store checkout experience is becoming an increasingly critical contact point to nail in order to increase shopper loyalty.
While popular digital technologies such as real-time payments, app-based scan-and-go functionalities, and buy now, pay later (BNPL) are welcomed by customers and merchants equally across geographies, payment systems such as Venmo and Zelle are more prevalent in the United States than the United Kingdom.
Furthermore, in the United Kingdom, loyalty cards are considered a far more appealing means to acquire consumer loyalty than in the United States, which does not perceive them as required for enhancing the payment experience.