'Curbside' pickup makes card payments harder to manage
With new curbside and buy online, pick-up in store (BOPIS) programs, the typical cash and card payment methods will be harder to maintain.
Now, merchants must offer e-commerce, and implement digital payment options at checkout. Recent data shows up to 80% of shoppers across Europe's three largest markets will be making at least half of their purchases online.
We are also seeing the rise and popularity of pay-later apps like Klarna and Afterpay to help offer relief from the economic impacts of the virus. Shoppers need flexible payment options. For merchants, extending many different payment options that cater to different consumer groups can provide diversification and enable growth.
This accelerated push towards digital puts retailers at a pivotal crossroads. A failure to offer a variety of digital payment methods can severely limit their customer pool.
COVID-19 will eventually lead to a digital arms race to create the best possible online experience. The merchants that understand this and make the checkout experience a top priority will succeed, and those who stick to their guns will be left behind. This is evidenced by a recent PPRO report, showcasing 42% of U.S. and 44% of UK shoppers abandon a purchase if their favorite payment method isn’t available.
While COVID-19 has put a large strain on global economies and consumers, it has also birthed a new age of innovation. New offerings like the rise of Facebook owned, WhatsApp payment features or PayPal and Venmo enabled QR code checkout are showcasing the acceleration of this trend. Financial technology is helping to keep humans connected and provide access to the goods and services they need. Digital adoption will only proliferate, so the time is now to get ahead of the curve.