As the holiday season approaches, retailers are gearing up for one of the busiest and most pivotal periods of the year. Paysafe’s newest study sheds light on the evolving landscape of consumer behavior, emphasizing the critical role that payment methods and seamless checkout experiences play in driving sales growth for online merchants of all sizes.
These findings, derived from a comprehensive survey of 14,500 consumers across Europe, North America, and Latin America, pinpoint the significance of adapting to evolving payment trends to capture a broader audience and enhance conversion rates.
According to the data, 81 percent of global consumers are adjusting their purchasing habits and spending this year. In the U.S., 78 percent of respondents confirmed they’re reevaluating their shopping habits. This shift in consumer behavior underscores the importance for merchants to reassess their checkout processes, with a substantial 64 percent of U.S. consumers indicating they would abandon a purchase due to checkout complications.
The study revealed a significant preference for alternative payment methods (APMs) among consumers. While debit (63 percent) and credit cards (53 percent) remain popular choices, the research highlights a growing inclination towards APMs. For instance, 48 percent of U.S. consumers favor digital wallets when shopping online during the holiday season, 40 percent are using bank transfers regularly, and 29 percent are embracing online cash payments, also known as eCash.
Moreover, the study underscores the impact of increased living expenses on consumer spending habits this holiday season. With so many consumers planning to adjust their budgets, the majority are scaling back on gift purchases, food and drink expenses, and socializing during the festive period. However, a notable 22 percent plan to leverage seasonal deals, while 21 percent have proactively saved earlier in the year to manage the heightened costs.
In the competitive landscape of retail, differentiation is key. To emerge as the ultimate shopping destination, retailers must prioritize offering multiple payment methods and ensuring a frictionless payment experience. By doing so, they not only cater to evolving consumer preferences but also attract new audiences, thereby bolstering their conversion rates.
The insights gleaned from this research serve as a clarion call for retailers to adapt and innovate in response to shifting consumer behaviors. Those that prioritize a diverse array of payment options and streamline the checkout process are poised to capture the attention of discerning consumers, ultimately reaping the rewards of heightened sales and customer loyalty during this crucial holiday season.
The convergence of changing consumer preferences and the economic landscape creates a need for merchants to improve the payments experience they offer. By embracing diverse payment methods and prioritizing a seamless checkout experience, retailers can carve a path to success and stand out in an increasingly competitive market.
Rob Gatto is Paysafe’s chief revenue officer (CRO), overseeing global sales function across various high-growth sectors such as gaming, travel, entertainment, fintech, and digital assets.
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