The study highlights the importance of payment experiences for businesses. According to the study, 61% of merchants consider payments a strategic focus that can drive competitive differentiation. Additionally, 53% of merchants believe offering various digital payment options is the top strategy for driving conversions. Consumers agree, with 63% stating that the ability to use their preferred payment method significantly influences their purchase decisions. However, only 23% of merchants feel they provide highly engaging digital experiences for customers.
“We’re seeing a continuing trend of merchants viewing payments as a driver for top- and bottom-line improvements, in addition to customer experience enhancements,” said Rajiv Gupta, vice president of international markets (EMEA) at Discover Global Network. “It’s no longer cash or credit as the two options. Our payment solutions can help merchants enable various options so consumers can pay using their preferred payment method.”
The study also highlights the importance of omnichannel options. While 57% of consumers plan to spend most of their discretionary income online, in-store purchases are rebounding, rising to 43% in 2024 from 39% in 2023. In North America and EMEA, in-store spending is particularly strong, with 55% and 48% of consumers, respectively, expecting to spend most of their discretionary income in-store. Consumers are frustrated by the lack of omnichannel options, and 86% of merchants agree that their omnichannel payment experience needs improvement.
Merchants see tap-to-pay on mobile as a key driver for their organizations over the next three years. 92% of merchants view it as valuable, with benefits including the ability to accept payments nearly anywhere (61%) and deliver a more personalized sales experience (56%). Consumers also enjoy the ease of tap-to-pay on mobile, with 73% feeling comfortable using this method.
To convert more in-store shoppers, merchants prioritize integrated app checkout experiences that combine payment, offers, and rewards (43%), promote contactless payment options (39%), and offer more installment/financing options (39%).
“This year’s survey revealed the value of payments for both merchants and consumers. Merchants are recognizing how diverse payment options can lead to higher conversions, while consumers are prioritizing payment methods tailored to their individual needs and requirements,” said Jordan McKee, Research Director of the fintech practice at 451 Research, part of S&P Global Market Intelligence. “With this in mind, a critical success factor for merchants is aligning with payments partners who understand the nuances of the global landscape and can connect them to the payment methods their customers expect to use.”
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