For many retail customers, spending has changed. Tightening budgets and rising costs have seen consumers become more selective in how they spend their spare cash. Now, it’s essential retailers deliver a seamless, secure payment experience that will see tills ring, rather than checkouts abandoned.
But how can you do that? And what exactly do consumers now expect from their checkout experience?
Go deeper with GlobalData
The outlook for small and large retailers
First, it’s important to take stock of the current landscape for small and large retailers.
According to recent research, which surveyed consumers across the UK, the Americas, and Europe, it’s common for consumers (31%) to shop with both large and smaller businesses online in equal amounts – beating out emerging retail options like second-hand marketplaces such as Vinted (4%), or social media platforms like Instagram where consumers can buy directly (6%).
What appeals about your businesses may differ — 25% of consumers consider larger businesses’ wider range of goods the greatest benefit of shopping with them, while 32% of consumers like the more personalised experience they get from smaller businesses.
This appeal is clearly a good thing, with 42% of consumers intending to shop more at local businesses in 2024.
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By GlobalDataHowever, while there are differences between small and large retailers and how consumers interact with you, there is a trend that holds true for all businesses: customer expectations around payments are changing.
Consumer retail payment expectations are changing
Regardless of your size, consumers now expect online retailers to offer a more seamless, secure, and varied payment experience — going beyond traditional methods like debit and credit cards.
The same research found that 73% of consumers expect large businesses to offer a wide range of payment methods online, and 59% of consumers expect the same of small businesses. This includes increasingly popular local payment methods (LPMs) like digital wallets and eCash, also known as cash online.
The good news is that LPMs can help small and large retailers meet and exceed other consumer expectations – namely security, and enjoying a friction-free experience.
Digital wallets and eCash, for example, don’t require consumers to enter financial details. This is a boon for more security-conscious online shoppers. In fact, 68% of consumers feel more comfortable using a payment method that doesn’t require them to share financial details online with a business, regardless of its size.
Experience is everything
Security is essential, but can’t come at the cost of a seamless transaction – 63% of consumers say that if a checkout experience has delays and other complications during payment, they’re likely to abandon a purchase.
Thankfully, LPMs offer fast, frictionless means of making payments. In fact, recent consumer research found that 40% of respondents reported increased reliance on digital wallets for online payments compared to the previous year – a sure sign these payment methods are growing in esteem.
So, while purse strings may have tightened, consumers are still eager to spend with small and large retailers alike. Now, it’s up to you to provide a payment experience that makes them pass through the checkout, and come back for more. LPMs can help you do just that.
About the author: Rob Gatto is Chief Revenue Officer at online payments company Paysafe.
