The emphasis is often generational when looking at how payment preferences are set to change. Indeed, Millennials and Generation Z do often lead the charge in embracing payment innovation, but recent events have sparked a change in consumer payment habits across the board. This article will take a deep dive into how our core verticals have been impacted and explore how coronavirus has prompted a shift in how consumers shop and pay for goods.
Retail
As shops in the UK are able to reopen this month, merchants should focus on how they can make consumers feel safe in their space. Clearly signposting your rigorous hygiene practice is key, but also ensure that you don’t neglect the moment of payment. The use of cash is dwindling and unlikely to pick back up for the foreseeable future, therefore, look at putting the spotlight on contactless payments. This doesn’t just mean having POS terminals enabled with NFC technology that allows you to accept mobile and contactless card payments. You can take it a step further and offer card-on-file payments to regular customers, meaning that they don’t have to supply card details except for the initial transaction.
The concept of curb-side pick-up is also gaining momentum. It enables merchants to use their shop as a physical base and allow customers to come to them but prevents footfall and overcrowding within their store.
Gambling
Although the Premier League, amongst other sporting events, will be kicking back off shortly, there has still been a significant lull in live sports over the last few months, causing the focus to shift to other forms of betting. There has been less of a change in the way consumers place payments, but rather the subject matter punters are betting on, with
esports and virtual sports betting gaining prominence.
Travel
The ease in which a consumer can get a refund if their holiday is unable to go ahead is now informing the initial purchase. They want assurance that they will not miss out financially if their trip is cancelled. Considering this, travel merchants should have robust policies in place.
Another substantial shift in the way that consumers pay for travel relates to the timeframe; travellers are understandably apprehensive about paying for holidays that may be impacted by a resurgence of the virus. Therefore, consumers may be wary about booking holidays too soon, too far in advance, or paying the total cost up-front. Buy now, pay later payment methods, like Klarna, could be beneficial for travel businesses as they enable consumers to pay in instalments rather than in a lump sum.
eCommerce
eCommerce has seen the most growth as many consumers have relocated online to shop for items they would usually purchase in-store. Some consumers may be new to online shopping so make sure the user experience (UX) is as intuitive and simple as possible, gently guiding consumers through each step of their purchase journey. As less experienced online shoppers continue to embrace eCommerce, look into ways of making the payment experience seamless. Furthermore, if you are an eCommerce merchant selling high-value items, UX is even more important as it helps signal that your brand is reliable and trustworthy. Another way of overcoming customer concerns relating to fraud and security is looking into pay on collection and invoicing payment methods, removing the fear that their money is taken but the goods never arrive.
Concluding thoughts
Consumer tastes and preferences are always fluctuating, but the scale and pace of recent digital adoption was unprecedented. Businesses across verticals were forced to switch up their strategy and many are still struggling to adapt to the sudden changes brought about by COVID-19. However, change to some degree is necessary to ensure customers feel safe and comfortable buying from you. Putting the needs of your customers at the centre of your strategy will help build
loyalty and allow you to stay abreast of shifting shopping and payment habits.
If you’re interested in learning more, get in touch today to speak to one of our sector specialists.