Tuesday, July 18, 2023
Additional highlights from the 2023 Carat Insights report, based on a survey of 2,200 adult Americans this past Spring, include the growing appeal of both digital wallets and retailer apps. Carat is an omnichannel ecosystem that orchestrates payments and experiences for many of the world's largest businesses.
Buy online, pick-up in-store (BOPIS) gained numerous converts in the early days of the COVID-19 pandemic, but it didn't stop there. In 2022, 47 percent of consumers surveyed used BOPIS; this year, 50 percent said they used BOPIS. BOPIS is especially popular with Millennials and Generation Z, with 85 percent of participants in each age group saying they use it.
eMarketer estimated Americans spent $95.87 billion using this click and pick-up shopping method in 2022; that total is projected to reach $154.30 billion by 2025.BOPIS usage is most popular at restaurants, with 59 percent of those surveyed by Fiserv saying they used BOPIS to pay for a meal. Other popular places to click and pick up include: retailers (47 percent) and grocery stores (47 percent).
With inflation stressing wallets, consumers also have become more cost conscious. It's not the shopping channel, but cost, that really drives consumer purchase decisions, though. Fifty-nine percent of those surveyed said price is their biggest consideration when determining which channel to shop.
As digital ordering grows, retailers are driving more commerce by enhancing in-app experiences and integrating their apps with digital wallets, Fiserv noted.
Sixty-four percent of consumers told the company's pollsters they had used digital wallets for online purchases within the past year, up from 60 percent in 2022. Ease of use was the most common reason given (56 percent of surveyed consumers), followed by ability to pay in-app (46 percent), loyalty program integration (44 percent), and options for in-store pick-up or delivery (41 percent).
Cost-conscious consumers, meanwhile, said they choose retailers apps over third-party apps because of lower costs. In fact, 46 percent of consumers who said they ordered directly from a retailer's app also searched on a third-party app, Fiserv said.
For their part, businesses are exploring opportunities to embed new financial experiences throughout the customer journey, Fiserv reported. Two such opportunities that seem to have strong consumer interest are instant issuance of cards at checkout (61 percent of consumers like the idea) and pay-by-bank, where consumers pay for purchases directly from their bank accounts (34 percent).
One additional insight from the report: debit card usage outperforms credit card usage, both online (79 percent versus 72 percent) and in-store (80 percent versus 71 percent).
"Businesses have tremendous opportunity to deepen relationships with customers by enabling omnichannel experiences that streamline the purchasing process," said Casey Klyszeiko, head of Carat and Global eCommerce at Fiserv. "By integrating a range of commerce experiences within their own digital ecosystems businesses can simplify how customers earn, shop and save while engaging customers in value-added programs that increase loyalty and customer satisfaction." 
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.
