As Black Friday looms, it’s imperative for retailers to diversify their payment offerings to align with the shifting consumer preferences, highlights Love Discount Vouchers.
Recent studies indicate a predicted 40% decrease in individual spending during the Black Friday period compared to 2022. This trend underscores the necessity for retailers to broaden their payment avenues to include various methods.
A significant 60% of shoppers are prone to abandoning their purchases if their preferred payment methods, including BNPL (Buy Now, Pay Later), Apple Pay, Google Pay, and PayPal, aren’t available. Consequently, businesses must incorporate a range of payment options to prevent potential sales losses.
Gen Z Trends
The anticipated spending per person for Black Friday 2023 is projected to be 40% less than the previous year. However, 80% of Generation Z (ages 18-23) plan to participate in the sales, spending about 56% more than the national average. dotdigital reveals that a majority (84%) of Gen Z consumers perceive Black Friday deals as valuable. Known for their savvy shopping habits, Gen Z uses a variety of tools to secure the best deals, suggesting retailers need to tailor their strategies to captivate this key demographic.
Enhancing Customer Experience
Introducing multiple payment options can not only elevate the customer experience but also enhance conversion rates. Retailers often lose customers at the checkout stage; Quantilope’s data shows that 72% and 48% of Black Friday shoppers will use debit and credit cards, respectively.
checkout.com reports that 53% of UK consumers utilise E-wallets from providers like Apple Pay, Google Pay, and PayPal. Predominantly used on mobile devices, E-wallets are vital for boosting conversion rates, especially considering that over 55% of web traffic is mobile-based. Gogoi (2017) noted the increased satisfaction and purchase frequency associated with E-wallet usage.
The BNPL Impact
About 26% of UK shoppers intend to use BNPL for Black Friday purchases. In 2021, Klarna facilitated 53% of BNPL transactions, according to BusinessofApps. Global payments analysis indicates that BNPL options encourage consumers to shop more with retailers who advertise this method throughout the customer journey.
Prepaid Cards’ Future
Juniper Research forecasts that digital prepaid card transactions will reach a staggering $3.98 trillion within the next five years. The popularity of prepaid cards is growing, particularly with increasing customer rewards like cashback offers.
Cryptocurrency and Retail
Retailers must acknowledge the growing segment of consumers using and investing in cryptocurrencies. The Wall Street Journal states that approximately 220 million people use cryptocurrencies for various purchases. A vast majority of retailers (93%) accepting cryptocurrencies have observed improvements in their customer base and brand recognition metrics.