PYMNTS, in collaboration with VISA, recently analysed payment trends amongst US consumers in the 2018 ‘How we will Pay’ report. Across the country, 2,800 individuals were surveyed – the average age ranging around the same as that of the US itself. While you can download the full report here, we’ve also assessed the three key talking points and what they mean for you as a merchant below.
Takeaway #1: Ownership of more devices
Almost every surveyed consumer owned a mobile phone, while those who took part also owned more than four devices on average. It was also revealed that paying with voice was an upward-moving trend. 27% of consumers in the 2018 report owned speakers with which they could pay for items, which is a 13% year-on-year increase.
What does this mean for merchants?
Consumers desire convenience. While one shopper may prefer to pay with using an iPad, another might find it easier to use their smartphone. Moreover, it’s possible that they might choose an alternative to their normal payment preference if in a rush – for example, paying with voice if they can’t find their card. Therefore, cross-device payment optimisation is vital.
Takeaway #2: The growing desire for quick and stress-free payments
Tying in with the first takeaway, it was clear that many consumers in the survey are on the constant lookout to make their eCommerce experience as stress-free as possible. Automatic payments for commuting tickets, clothing and restaurants all went up this year, as did buying from a TV. Meanwhile, the majority of consumers believed that contactless payments could be valuable in multiple sectors.
What does this mean for merchants?
No matter which methods you offer, it’s vital that each customer’s payment journey is seamless. The consequence is simple… no straightforward checkout = higher shopping cart abandonment rates. Asking customers to create an account prior to paying and making the checkout page difficult to find are just two ways that can impact this. So how do you combat such problems? Allowing for guest checkouts, along with including the option to display your checkout page in multiple locations, can both help. And if you are asking customers to create an account prior to paying, utilise tokenisation to make their future payments faster and easier.
Takeaway #3: Trust and reliability
As quoted from the report, “customers trust banks and card networks to power their connected commerce experiences more than any other institution”. The statistics back up this take, with way over half of surveyed customers stating that they trusted said institutions with managing their ‘connected purchases’. In contrast, fewer than half trusted other schemes such as digital wallets and social networks.
What does this mean for merchants?
Merchants need to invest more time and effort to reassure customers about the way they collect payments from their customers. This can be achieved by including payment collection information and security policies on their site. In said section, it’s important to explain payment handling and related processes. Displaying logos of trusted methods, in addition to trusted payment providers, are other ways that eCommerce brands can convince consumers that they’re trustworthy.
To summarise…
US customers are a tech-savvy group of people and many own multiple devices. Moreover, convenience is preferred when it comes to payments. When looking at future US payment trends, it would be wise to look at other technologically-advanced nations. China would be one example. Here, efforts are being made to optimise payments across multiple channels and emerging technologies. As this becomes the trend in the US, it becomes more relevant for merchants to prove they can cater for changing consumer behaviours.