If a consumer can’t choose their preferred way to pay, or has trouble swiping, that shopper is likely to bolt and go somewhere else to shop.
That’s a big issue for retailers given U.S. consumers are spending 43% more money swiping a credit card compared to cash and a third (33%) listed credit cards as the preferred method of payment, according to the 2021 State of Payments Report from communication and payments platform, Podium.
The study reported nearly a quarter (23%) of consumers abandon transactions at local retailers when their favorite way to pay isn’t available, according to a press release on the findings.
«With the current digital transformation and pandemic-induced pressures, payments have evolved from ‘how you get paid’ to playing a critical role in your business’ customer experience,» Eric Rea, co-founder and CEO at Podium, said in the release. «Local businesses need to be acutely aware of preferences across the entire customer experience, and with so many ways to pay these days, it’s crucial for them to provide the options their customers want.»
Other key findings include:
- Being offered convenient payment options (41%) is the second most important factor customers consider when choosing a local business, next to customer service (60%). Preferred payment options were more important to customers than proximity to their home (36%), availability of sales or discounts (25%) or a personal relationship with the business (20%), among other elements.
- If a local business only accepts cash and credit card swipes, they are missing the top payment choices of 31% of U.S. consumers.
- Digital options — including website payments, mobile wallets such as Apple Pay and Google Pay, direct pay platforms like Venmo or Paypal, and text links — were the top payment choice for 20% of consumers.
- Nearly three-in-four (72%) consumers reported the changes to their preferred payment methods due to COVID-19 are likely to last beyond the pandemic.
