We’ve no doubt that this year has continued some of the uncertainty we saw during the pandemic period. Post-pandemic trends show that year over year in-store shopping is regaining momentum after the pandemic and this doesn’t seem to be slowing down. Despite this rise, E-commerce sales growth does remain high as consumers grow in confidence from purchasing online.
Read on to find out more …
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What’s trending?
Retail trends and purchasing habits have meant businesses have had to adapt their operating methods over the past few years; more recently payment methods have been a big part of this development.
Despite changing trends and consumer behaviour, it is key to remember that there are some trends that remain important for all businesses. Throughout 2022 we’ve experienced an inflationary environment, a continuing rise in fraud, extremely cost-conscious consumers and a competitive eCommerce environment – all this means that businesses need to ensure they are delivering all products and services with the following:
1. Control & Choice – a wide range of payment methods ensure consumers are able to use their preferred option.Types of payment methods are included in this and can include: post purchased balance check & pay later options – e.g. Klarna, Paypal, Apple Pay, Google Pay
2. Security & Safety – Trust and reassurance is essential for consumer confidence, especially in a time when this may be lower due to the ongoing economic situation.
3. Convenience & Seamlessness – Fast consistent payment options, and ensure you consider when, how and where consumers pay.
Influences for customers
We’ve also seen a change in priority for most consumers as they readjust what is important to them, as cited in MarketingDive 63% of consumers prefer to purchase products and services from companies that stand for a purpose reflecting their own values and beliefs. Whilst 67% of consumers would be more likely to make a second purchase from brands committed towards diversity & inclusion according to a YouGov study.
Ultimately, although eCommerce will continue to grow, recent events have dictated a change in where and how consumers will spend their money.
Instalment payments
As of 2022, there are currently an estimated 360 million people worldwide using Buy Now, Pay Later services, with around 3 in 5 people in the UK already using such schemes.
Buy Now, Pay Later schemes (BNPL) are a form of short-term credit which allow you to pay in a number of instalments or one repayment at a later date, interest-free (Which?; 2022)
This number is set to more than double over the next five years. By 2027, it is expected that there will be 900 million users worldwide purchasing through instalment payment methods – an increase of 157%.
With the demand for instalment payments increasing, it is crucial that businesses adapt to payment methods with this offering to make sure that purchasing is more accessible, particularly with the ongoing cost of living crisis that we are currently experiencing within the UK.
There are multiple BNPL schemes available, all of which have their own unique selling points some of the most common ones being used in the UK at the moment include Klarna, CLearpay, Laybuy & Paypal.
This is a feature also being embraced by banks and other companies such as Apple – so it is likely we will continue to see more of these options available over the coming years. (Which?; 2022)
Main Benefits Of Instalment Payment Methods
Increasing sales
Making sales more accessible and affordable and helps to increase AOV
Recognition & Trust
Using well-known & Trusted payment providers
Apple & Google Pay
Making it more convenient for customers to use their mobile phones or devices to make purchases
Business Insights
Get reporting on purchases made with Pay Later to work out trends and changes
Diversity
Works for all types of Businesses
Easy promotion
Add Pay in 3 messaging on the website, promoting the accessibility for customers
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