Buzzworthy Insights – Changing Consumer Payment Habits

06.27.2022 Buzzworthy Insights
By BDS Strategy and Analytics

Changing Consumer Payment Habits

The way consumers pay is changing. According to new research from Paysafe, 39% of American consumers have permanently changed how they pay since the start of the pandemic. When it comes to small purchases, cash still remains the top payment option with items such as pastries (46%) and takeout food (30%). Debit / credit cards are still the preferred option for more expensive items such as a tank of gas or restaurant dinner. When using a card, 67% of consumers indicate they regularly make contactless payments, 37% make contactless payments with a smartphone or wearable device. (View source)

New Consumption Habits

According to a new Pitney Bowes BOXpoll survey, American consumers are feeling the grip of record-high inflation rates. 49% of consumers, including 60% of millennials, are shopping differently due to retailers offering discounts on large ticket items such as home appliances and furniture. Simultaneously, 15% of all consumers are unlikely to buy discounted items because they are cutting back on spending. In regard to shipping, 67% of consumers are no more likely to pay for faster shipping than they were three months ago. However, 33% of Gen – Z, 33% of those shopping more, 23% of parents, and 22% of Millennials are willing to upgrade shipping. (View source)

Back to School Shopping

According to a recent LTK study, the back-to-school shopping window is expanding – running from late June to early September. The majority of consumers are planning to shop for items by the end of July, with one-third planning to shop between late June and early July in hopes of finding everything they need is in stock and affordable. Gen – Z’s preferences and influences vary from all other generations, when it comes to online shopping, 65% of Millennials and Gen – Z say they will be shopping online to save money, 10% above any other generation. For top items on the purchase list, Gen – Z is prioritizing electronics, personal care & beauty products, clothing, and food & beverage. For all other generations, shoes, backpacks, and other core school supplies like paper and pens are being prioritized. As for who influences their purchase behavior, Gen – Z now says they trust content creators more than friends and family. (View source)

Reducing Returns

Title Nine, an outdoor apparel store for women, has seen great gains from utilizing cloud-based AI technology, Newmine’s SaaS solution. Between 2019 – 2021, through the switch of manual to automated returns management, the amount of time it takes an employee to access the data to analyze returns and apply that to the business decreased by 90%. In addition, the retailer achieved lower return rates in 90% of its product categories, driving an aggregate 18% reduction in returns between the two years. (View source)

Virtual Try-Ons from Amazon

Retailers across various industries are launching AR try-on platforms. Amazon is expanding their virtual try-ons with the introduction of shoes. Customers in the US and Canada can use the new service via the Amazon iOS app to visualize thousands of sneakers from select major brands. Once a shoe is selected, customers can tap the “Virtual Try-On” button, then point their mobile device at their feet, moving them around to see how the shoe looks from every angle, with an option to swap colors while in the experience as well. (View source)

Thanks for reading!

Follow the latest industry trends with insights straight from our experts: BDS Marketing Blog.