Survey: The more payment methods, the happier your customers are

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Retailers must offer a variety of frictionless payment options to avoid losing customers and sales.

Customer messaging platform Podium’s “Payments Status Report 2021” says being presented with convenient payment options is the second most important factor consumers consider when choosing a local business. (41%), after customer service (60%). Preferred payment options were more important to customers than proximity to home (36%), availability of sales or discounts (25%), or a personal relationship with the business (20%).

Digital payment options including website payments, mobile wallets like Apple Pay and Google Pay, direct payment platforms like Venmo or Paypal, and text links were the top payment choice for 20% of consumers . If a retailer only accepts cash and credit cards, it is missing the top payment choices for 31% of U.S. consumers.

Looking at the payment preferences of high-income consumers with household income over $ 100,000 per year, 38% delayed payment or abandoned a transaction because their preferred payment method was not offered, or 74 % more than the typical consumer.

In addition, nearly six in ten high-income consumers (58%) were more likely to avoid retailers that did not offer contactless payment methods. And nearly two-thirds (64%) of high-income consumers who tried SMS payments liked it or liked it highly.

Other findings include:
• Almost three in four respondents (72%) said changes to their preferred payment methods due to COVID-19 are expected to last beyond the pandemic.

• Respondents are 43% more comfortable spending money swiping their credit card than paying in cash, and 53% more comfortable reading their credit card numbers over the phone at a representative.

• One-third of all respondents indicated swiping or inserting their credit cards as their preferred payment method, and almost a quarter completely abandon transactions when their preferred payment methods are not available.

“With the current digital transformation and the pressures induced by the pandemic, payments have shifted from ‘how you get paid’ to playing a vital role in the customer experience of your business,” said Eric Rea, co-founder and CEO of Podium.


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