New Report Reveals Online Shoppers Want More Payment and Financing Options
SALT LAKE CITY – January 2017 – FuturePay, an online payment option and alternative financing solution that allows shoppers to buy now and pay later, today released its new report, “The Big Ticket: What’s Stopping Shoppers?” The study examines the online shopping habits and payment preferences of 1,500 U.S. shoppers.
“Changing shopping habits, and the emergence of new e-commerce and payments technology, has made it difficult for retailers to predict whether or not consumers will pull the trigger on purchases – particularly when it comes to ‘big ticket’ items such as electronics or appliances,” said Bobbi Leach, CEO of FuturePay. “Our study’s findings highlight how alternative, non-credit card payment options and financing can help retailers improve their top line by better catering to the needs and preferences of today’s online shoppers.”
Key findings from the study include:
Daily online shoppers are quick to adopt mobile and payments tech.
While mobile devices have grown in popularity over the past few years, they haven’t yet won over most online shoppers. In fact, 77 percent of online shoppers prefer to use a computer to research products. When it comes to purchasing products, that number rises to 82 percent.
Daily online shoppers, however, aren’t shy about embracing mobile. More than 30 percent of daily shoppers prefer to research on mobile, compared to the 12 percent of those who shop online a few times a year. Daily shoppers are also more familiar with different payment options beyond just credit cards, including layaway and cash-on-demand.
Online shopping concerns fuel cart abandonment.
From the cost of shipping to website security, common concerns have caused 97 percent of online shoppers – and 100 percent of all daily shoppers – to abandon an online shopping cart at one point or another. Other reasons for giving up on the checkout include the absence of mobile compatibility and return hassles. As many as four out of ten daily shoppers also cited a lack of payment options as a common frustration.
“As convenient as online shopping is, there’s plenty of room for improvement when it comes to the availability of non-credit card payment options,” said Leach. “In order to slash cart abandonment rates – and thereby increase sales – retailers should consider adding flexible payment and financing options. Introducing small perks such as in-store pickup and returns is yet another way to improve the online shopping experience.”
Daily shoppers prefer to buy big ticket items online.
Costing hundreds or even thousands of dollars, big ticket items, such as electronics, furniture and appliances, warrant plenty of research and planning before a purchase is ever made. Experiencing the look and feel of such an item is often part of the purchase decision, as well. Still though, daily online shoppers are more than comfortable purchasing big ticket items online. Three out of four daily shoppers have made a big ticket purchase online or are planning to, compared to 33 percent of those who only shop online a few times a year.
One way retailers can help spur big ticket purchases is by offering alternative financing and payment options that make it easier for shoppers to pay for such items. More than two-thirds of shoppers, as well as 79 percent of daily shoppers, would be more likely to make a big ticket purchase if they could break it up into smaller payments.
“From the continued growth of e-commerce to an increasing willingness among shoppers to buy more expensive items online, there’s never been a better time for retailers to step up the online shopping experience,” said Leach. “By introducing alternative financing and payment options that accommodate online shoppers’ demands, retailers can quickly set themselves apart from the competition.”
The Big Ticket: What’s Stopping Shoppers? is a study based on a survey of 1,500 U.S. shoppers. The data was gathered in Q4 2016 and the study was distributed in Q1 2017. The study dives into “big ticket” online shopping, the frustrations getting in way of completing those purchases, and how alternative, non-credit card payment options and financing can influence the experience. It also takes an in-depth look at a key segment of shoppers – those who shop online daily – and how their habits differ from online shoppers as a whole.
FuturePay is the simplest way for merchants to offer an affordable, instant financing solution to their customers at point of purchase. With FuturePay, customers can buy now and pay later with one click, creating a streamlined checkout process on every device. With upfront payments and an easy integration, retailers can start attracting new customers instantly. To learn more about how FuturePay can benefit your business, visit www.futurepay.com. Follow us on Twitter @FuturePay.
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