The payments landscape has undergone transformative changes, accelerated by the impact of COVID-19. With a surge in online shopping, businesses are adapting to omnichannel payment strategies, navigating challenges, and capitalizing on consumer behaviors shaped by the pandemic.
Key trends include the resurgence of in-store shopping, the exponential growth of online commerce, and the rise of mobile and social commerce, particularly on platforms like Facebook, Instagram, and TikTok. Live selling is emerging as a dynamic retail experience, creating opportunities for engagement and sales.
Understanding US consumer preferences is crucial, with expectations centered around seamless delivery, free shipping, and transparent tracking. Businesses that integrate these preferences seamlessly into their online presence tap into significant opportunities.
| In the wake of the pandemic, in-store shopping, synonymous with the quintessential brick-and-mortar retail experience, has staged a remarkable comeback with a forecast of 72% of US retail sales occurring in these physical stores, reclaiming its role as a formidable player in the industry. (Reda, 2022) | significantly more than the 38 minutes typically spent on a single website.(ICSC, n.d.) This stark contrast underscores the enduring importance of prioritizing and enhancing in-store experiences, even amidst the pervasive influence of the digital realm. |
| This mode of shopping entails a customer physically visiting a retail establishment to scrutinize, choose, and acquire goods or services. What sets in-store shopping apart is the immersive experience it offers, where patrons invest an average of 54 minutes perusing a physical store — | Payments are no longer confined to the binary of cash or card; the question now extends to a myriad of options such as mobile wallets like PayPal, ApplePay and GooglePay, to bank transfers, Buy Now Pay Later options, credit and debit cards, propelled by the rise of omnichannel payments. |
Catalyzed by events like Black Friday—Cyber Monday (BFCM) weekend, online shopping reached unprecedented heights, with Adobe Analytics reporting consumer spend to be at $9.8 billion on this day alone, this is 7.5% up from the year prior. (Delesline III, 2023) This surge is a testament to the widespread appeal of online shopping, where consumers capitalize on enticing deals and the seamless experience of purchasing products through various devices, be it mobile, apps, or computers.
This momentum in online commerce is not confined to individual platforms. According to Forbes, the analytics firm Comscore reported a remarkable figure for US e-commerce sales—$1.09 trillion in 2022, marking a robust growth rate of 10.6% from the previous year. (Koetsier, 2023) The accelerating surge in e-commerce not only highlights its dynamic trajectory but also signifies a profound shift in consumer behavior, reshaping the retail sector at its core.
Looking forward, the trajectory of mobile commerce is striking. It was predicted in 2023, that an estimated 187.5 million U.S. users will have completed at least one purchase via a web browser or mobile app on their mobile devices—a substantial increase from the 167.8 million mobile buyers recorded in 2020. This trend underscores a significant shift, with mobile buyers consistently constituting at least 60% of the U.S. population since the inception of the decade. (Chevalier, 2022)
| Amidst the 2 hours and 24 minutes that an average person invests in social media, a notable shift towards social commerce has emerged. (Nyst, 2023) Social commerce, the practice of selling products and services directly on platforms like Facebook, Instagram, TikTok, and Live Selling, transforms the entire shopping journey—from initial product discovery to the final checkout, | seamlessly occurring within the social media realm. (McLachlan, 2022) In 2022, global sales through social media platforms surged to an estimated $992 billion. Projections for 2030 anticipate an extraordinary growth to $8.5 trillion, showcasing the immense potential for business expansion through social commerce. (Global Industry Analysts. 2024) |
Live SellingEnter the realm of live shopping, also dubbed as livestream shopping, live video shopping, or live commerce—a digital gateway where retailers can showcase their products through captivating videos and directly engage with online consumers. This innovative approach allows consumers to participate actively, posing questions and interacting through live chat channels, fostering a dynamic connection. Enthusiasts can even add products to their basket in real-time while engaging with their favorite influencers. (Emplifi, 2022) |
Notably, services like CommentSold demonstrate the immense potential by generating up to $300 per minute in a single live sale, illustrating the lucrative nature of this engaging retail experience. (Whitmarsh, 2022) Live shopping isn’t confined to a single platform; it allows simultaneous streaming across various channels, including your online store, mobile app, Facebook Live, and Facebook Groups. This versatility ensures that retailers can reach their audience through multiple avenues, creating a seamless and immersive shopping experience for consumers. |
As a company, you would want to cement your position in being top of mind for your consumers. Unlocking the full potential of online shopping requires businesses to align with the expectations of discerning US adults. According to Morning Consult, these shoppers deem certain attributes indispensable for a truly convenient experience:
In recognizing these preferences, businesses not only tap into a substantial opportunity within the online shopping realm but also demonstrate an understanding of the nuanced requirements that define a truly convenient and customer-centric experience. By seamlessly integrating these attributes, businesses position themselves to thrive in the dynamic landscape of online retail. (Morning Consult, 2023)
Omnichannel: Access Anywhere, AnytimeProviding a consistent payment experience across in-store, online, and mobile channels is pivotal. Omnichannel payment processing, adaptable to various devices, ensures a smooth payment process, enhancing convenience and customer experience. |
POS Products Connectivity and SynchronizationBeyond payment processing, seamless synchronization between POS products for onsite and online orders is critical. This synchronization allows real-time management of inventory, tracking of sales, and processing of orders, minimizing overselling risks and enhancing operational efficiency. |
Retail CapabilitiesA distinguished payment processor extends beyond conventional transactions, offering a comprehensive suite of retail-focused capabilities. This includes advanced inventory management, CRM tools, loyalty programs, and robust analytics. Understanding customers, personalizing marketing, and fostering loyalty become integral aspects of the retailer’s toolkit. |
Seamless IntegrationEfficiency begins with seamless integration. A proficient payment processor assists in seamlessly integrating payment processing with essential business systems, from accounting software to e-commerce platforms. These integrations streamline workflows, reduce errors, and optimize overall efficiency, tailoring the payment processing experience to specific business requirements. |
In a world where everything is interconnected, understanding consumer behavior across diverse touchpoints is paramount. Retailers must leverage data to personalize the shopping experience, acknowledging that consumers research online before purchasing and traverse multiple touchpoints, from in-store to mobile, social, and live selling.
Collaborating with reputable payment processors like Payarc is crucial. The upcoming launch of Curv for retail signifies a commitment to empowering businesses with comprehensive solutions, seamless integration, and personalized support. While Curv is a recent addition, it inherits the solidity of Payarc’s reputation as a trusted payment processor.
To unlock the full potential of Curv and propel your retail business to new heights, contact us today. Our team of experts stands ready to guide you through the process, answer queries, and tailor solutions to your business needs. Experience the transformative benefits of Curv and position your business for sustained success.