Payment Methods: What We Learned in 2019

The times are changing, and so are shopping behaviors. With the rise of omnichannel payment experiences, BillingTree was curious to see how new software is changing the landscape of business.

No matter what your business is, whatever the size or scope, you can always benefit from knowing what consumers are thinking. In the long run, you want to build loyalty and retention.

Payment Methods of the Future

According to the 2019 US Consumer Behavior Report, two-thirds of consumers believe that digital wallets paired with smart devices are the payment method of the future. In fact, millennials (80%) and Boomers (58%)” believe that smartphones will eventually replace credit cards altogether.

Many merchants have been debating whether investing in this new payment processing method is worth the venture. It seems like Apple Pay, Google Pay, and Amazon Pay are going to be vital in retaining the loyalty of the next generation of top consumers.

Omnichannel Shopping & Payment Methods

It should come as no surprise that consumers are also growing more comfortable with online shopping as well. According to the report, a whopping 40% of US consumers surveyed are now comfortable shopping online in industries that used to see disdain for online payment, like clothing and shoes.

Businesses that have taken the initiative have also seen the power of abandoned cart emails to boost online conversions. According to a study conducted by Moosend,

“More than 40% of cart abandonment emails are opened, 50% of these are clicked on, 21% of them received click-throughs, 50% of the users who clicked purchased.”

From leaving a website with nothing to getting that customer to purchase is impressive. There’s simply no way to do that with a traditional brick and mortar store with that level of efficiency.

What Drives Your Customers Away

We’ve seen how online payment methods can drive and improve revenue, but let’s see what made consumers turn away in 2019. Some of the most significant issues that made consumers cancel their orders in 2019 are:

  • No guest checkout option (36%)
  • Extra charge for using their preferred payment method (29%)

Takeaways

Convenience is key. Businesses need to provide a seamless experience that matches that of top competitors like Amazon. The best way to achieve that is through newer, better payment methods.

That being said, digital payments are not something you should “consider investing in.” It’s the new normal and you need to get with the times.

Check out the various payment methods BillingTree offers to help your business prepare for the future of consumer convenience.