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Thursday, May 23, 2024

Navigating Payment Method Diversity: A Crucial Strategy for Retailers This Black Friday

As Black Friday rapidly approaches, it’s critical for retailers to adapt to the evolving payment preferences of consumers, a point emphasised by Love Discount Vouchers.

Research forecasts a notable 40% reduction in per capita spending during the Black Friday period compared to 2022. This trend suggests an urgent need for retailers to expand their payment methods to accommodate varied preferences.

Notably, 60% of customers are likely to forgo their shopping carts if unable to use their preferred payment options, such as BNPL, Apple Pay, Google Pay, and PayPal. Thus, it’s essential for businesses to offer a spectrum of payment choices to avert potential sales declines.

Focus on Generation Z

The expected individual expenditure for Black Friday 2023 shows a 40% drop from the previous year. Despite this, 80% of Generation Z, aged between 18 and 23, are planning to engage in the shopping event, with their spending set to surpass the national average by 56%. Research by dotdigital has found that 84% of Gen Z shoppers regard Black Friday deals as valuable, demonstrating their astute shopping skills and extensive use of various resources to secure the best deals. This indicates the need for retailers to modify their strategies to attract this vital demographic.

Customer Experience and Payment Options

Offering a variety of payment methods can enhance customer experience and boost conversion rates. A significant point of customer loss for retailers is at the checkout; Quantilope’s research indicates that 72% and 48% of Black Friday shoppers plan to use debit and credit cards, respectively.

Significance of E-Wallets

checkout.com’s findings show that 53% of UK shoppers utilise E-wallets like Apple Pay, Google Pay, and PayPal. With over 55% of internet traffic coming from mobile devices, E-wallets, predominantly used on mobile, are key in driving conversion rates. Gogoi’s 2017 study highlighted the increased satisfaction and higher purchase rates linked to E-wallet use.

BNPL’s Growing Popularity

26% of UK consumers are expected to opt for BNPL methods for their Black Friday shopping, with Klarna accounting for 53% of such transactions in 2021, as per BusinessofApps. Global payments studies suggest that the presence of BNPL options incentivises consumers to engage more with retailers that promote BNPL throughout the shopping process.

Rising Trend of Prepaid Cards

Juniper Research anticipates the total value of digital prepaid card transactions to reach an impressive $3.98 trillion in the next five years. The popularity of prepaid cards is escalating, especially with the increase in customer incentives like cashback rewards.

Cryptocurrency’s Influence in Retail

The surge in cryptocurrency usage and investment is an emerging trend that retailers cannot overlook. The Wall Street Journal reports that around 220 million people globally use cryptocurrency for a range of purchases. An overwhelming 93% of retailers who have adopted cryptocurrency as a payment method have noticed positive impacts on their customer base and brand awareness.

Sam Allcock
Sam Allcockhttps://businesslancashire.co.uk/
Sam Allcock is a highly regarded digital entrepreneur with over 20 years’ experience in online marketing for some of the World’s biggest brands. He has extensive knowledge and experience in SEO and digital marketing. He is based in Cheshire but has an interest in all things going on in the North West and enjoys contributing local news to the site.
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