DIGITAL COMMERCE
Today’s merchants are facing new challenges to meet modern consumers’ rapidly evolving shift from cash and checks to digital commerce. By 2018, researchers predict that American shoppers will use conventional paper approaches for just an estimated 15 percent of their personal spending, dipping from 2013’s 30 percent. Newer electronic payment methods will account for the major portion of 85 percent.
Tracking Purchasing Trends
Recent years have seen historic developments in consumer shopping approaches. A 2014 Forrester Research report estimates that Internet sales will jump from $294 billion in 2014 to $414 billion for 2018 while offline sales will decline. Another survey identified credit cards as the dominant American revenue engine, claiming 60 percent of retail payment income in 2014.
Consumers also are increasing their digital tool usage for purchases and payments. Forrester foresees Web-inspired offline sales increasing by $392 billion. That raises e-commerce sales, which encompass online and Internet-motivated offline transactions, from around 52 percent in 2014 total expenditures, to 59 percent for 2018. Growth will occur in absolute terms as well as percentages of overall retail sales.
Comparing Client Distinctions
Although digital and mobile purchases are expanding significantly, many customers don’t use technology tools for shopping and payments. To address everyone, researchers divided respondents into three categories by approximate percentages of their overall electronic payments via portable devices. They included credit cards, services like PayPal, and mobile wallets or apps during the three previous months.
Understanding distinctive characteristics by patron types will help you choose appropriate payment solutions to please everyone and boost your engaged, loyal client base. Plan for these three user profiles:
- Connected customers handle at least 20 percent of all electronic expenditures on mobile devices. Their pre-purchasing habits include searching and reading Web reviews. They use check-in apps for any in-store purchases. After thinking about their usage experiences, connected shoppers post their initial reactions online. Then they share reviews on multiple platforms.
- Digital clients conduct less than 20 percent of all electronic transactions on mobile devices. Such patrons use search engines in the pre-purchase phase. They buy e-commerce and in-store products. After forming their usage observations, digital customers may post their thoughts online. They engage with brands via tags and likes.
In summation, both connected and digital clients appreciate timesaving convenience. Over 40 percent chose handheld devices for electronic payments.
- Traditional consumers avoid mobile devices. Other routines include shopping in stores and speaking with on-site employees. This group makes purchases in stores only. Individual observations dictate product usage opinions. Traditionalists share their experiences with family and friends verbally.
These typically older consumers value security and savings highly. Due to fears of possible digital vulnerabilities, they’re hesitant about using mobile tools.
Offering Versatile Bill-Paying Solutions
The contrasting preferences between tech-savvy and conventional consumers pose payment challenges for merchants. You must meet the trendy desires of mobile platform users while accommodating their more conservative counterparts’ non-digital needs. To fit diverse customers’ habits and lifestyles, consider making these versatile options available:
- MobilePay: This E-Complish app or Internet-based user interface allows easy mobile credit card processing via smartphones and tablets. Allowing your clients the convenience of anywhere and anytime access helps payments roll in quickly. In addition to major credit cards, they can use business or personal bank accounts. MobilePay is Level 1 PCI compliant, so all encrypted transactions are secure.
According to a Fiserv survey, mobile payer numbers rose 69 percent in 2014. They process two invoices per month on average from their smartphones. Some 60 percent of respondents reported that billers offering mobile payment options increased their customer satisfaction.
- VirtualPay: When your online business, service firm, call center, or store provides this versatile web-based payment portal, patrons can access an extensive range of additional PCI-compliant E-Complish merchant services. After using major credit cards, debit cards, direct debits, or checks, clients receive email receipts with your recognizable logo automatically.
Varied choices are vital to suit everyone’s needs. One consumer might elect to have his insurance carrier charge his recurring monthly premiums to his credit card automatically but use his debit card for doctor fees. Another person could charge her monthly electric bills to her credit card on the provider’s website but mail her monthly house payment checks to her mortgage company. VirtualPay provides easy solutions for these and many other scenarios, so all customers can manage their bills in their preferred ways. Schedule a demo today!