Square: Regarding Payments, Customers Prioritize Convenience and Multiple Ways to Pay
As retailers continue to change their business strategies in the face of the COVID outbreak, they are realizing that shoppers expect convenience and several payment choices when making purchases.
Although credit cards are still the most popular payment method among buyers, contactless avenues come at number two, according to Square Inc.’s “The Future of Commerce Report.”
The survey found 36 percent of shoppers would rather pay using a contactless method. Forty-two percent are still for traditional credit card transactions, while 9% fancy the mobile wallet.
In total, 77 percent of retailers polled accept contactless payments. Mobile wallets are the most widespread form of contactless payment presented among retailers.
The popularity of contactless avenues vary as follows:
- Mobile wallets (63 percent)
- Touchless card payments (44 percent),
- QR codes (25 percent ).
Furthermore, 31% of shoppers interviewed want retailers to continue offering contactless payment methods even long after COVID has passed.
Square collaborated with Wakefield Research in the study which polled US consumers as well as restaurant owners, merchants, and beauty entrepreneurs. Square also claims to have acquired insights from enterprises and industry professionals.
According to the payment giant, which announced earlier in the month that it will switch its corporate identity to Block Inc. beginning Dec. 10, contactless payments are popular with Millennials and Generation z, with half (50 percent) of shoppers in both categories reporting a liking for contact-free transactions.
Paying via mobile wallet is almost as popular among Generation Z as using a credit card. Twenty-one percent would rather pay via a mobile wallet compared to 24% who still fancy credit cards.
When it comes to shopping, e-commerce remains a popular option, with buyers making 37 percent of their per-month purchases online, Square found.
Shoppers’ adoption of online shopping has altered merchants’ income streams, with entrepreneurs reporting that 58 percent of their proceeds come through the internet channel.
Although 64 percent of buyers would rather have an online shipment brought to their house, 26 percent are more likely to order online and pick it up from a store. Almost half of the businesses polled (47 percent) now offer online pick up in-store (BNPL).
Author bio:- Payment industry guru Taylor Cole is a passionate payments expert who understands the best merchant service provider for small and large businesses. He also writes non-fiction on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice cream on his backyard porch, as should all right-thinking people.