Transforming retail success through strategic payment optimization.
In today’s rapidly evolving retail landscape, the difference between good and exceptional business performance often lies in the details of payment strategy. A comprehensive new report from Worldpay reveals how retailers can unlock significant revenue growth and enhance customer loyalty through optimized payment solutions. Here are the key insights that every retail business leader needs to know.
Variety. Flexibility. Choice.
The research makes one thing crystal clear: payment flexibility is no longer optional. An overwhelming 94 percent of shoppers consider having multiple payment methods crucial to their shopping experience. More surprisingly, 57 percent of consumers report choosing retailers specifically based on their accepted payment methods. This represents a significant opportunity for businesses to attract new customers simply by expanding their payment options.
Digital wallets have emerged as a preferred payment method, with 68 percent of users citing convenience and 61 percent highlighting security as a primary reason for adoption. Meanwhile, Buy Now Pay Later (BNPL) continues its upward trajectory, with 66 percent of global respondents expressing openness to using it in the future.
This figure rises even higher in certain markets, reaching 92 percent in China and 83 percent in Brazil, indicating strong growth potential.
The Omnichannel Imperative
The report emphasizes that successful retailers must deliver seamless experiences across all channels. Consider these compelling statistics:
- 76 percent of shoppers expect their transactions and personalized offers to be integrated across channels.
- 85 percent want to accumulate and spend loyalty benefits across different shopping platforms.
- 25 percent of shoppers indicate they would spend more if offered a great personalized experience.
This data underscores the critical importance of implementing a unified omnichannel strategy that connects online and offline experiences while maintaining consistent payment options across all touchpoints.
Optimizing Payment Performance
Payment optimization represents a significant opportunity for revenue growth. The report identifies five key areas for improvement.
- Leveraging sophisticated data and insights in decision-making models.
- Enabling local currency payments for international customers.
- Optimizing payment method mix based on market preferences
- Partnering with leading payment providers for better authorization rates.
- Implementing automatic card detail updates.
Notably, 73 percent of shoppers consider automatic updating of their card details important, highlighting how technical optimization directly impacts customer satisfaction.
Security and Fraud Prevention
As retail payment methods evolve, so do the associated risks. The report identifies four major types of retail fraud.
- First-party misuse/friendly fraud.
- Account takeover and phishing.
- Credit card fraud and card-testing.
- Loyalty fraud and discount abuse.
Successful retailers are implementing sophisticated AI and machine learning tools to combat these threats while maintaining high authorization rates and minimizing customer friction. The report reveals how leading retailers have achieved up to 99 percent approval rates while significantly reducing manual reviews and chargebacks.
The Critical Role of Returns and Refunds
Perhaps surprisingly, the report identifies refund processes as a crucial factor in customer loyalty. With 96 percent of shoppers rating easy refunds and returns as important, and 47 percent expecting refunds within 24 hours, efficient refund processing has become a competitive differentiator. Leading retailers are now implementing real-time payment platforms to process refunds in under 30 minutes, significantly improving customer satisfaction..
Innovation and Future Trends
The research reveals a strong consumer appetite for innovative shopping experiences.
- 78 percent are open to using their own devices for scan-and-go payment.
- 65 percent would consider using augmented reality for virtual try-on.
- 55 percent express interest in live-stream shopping.
- 53 percent are open to drone delivery.
Additionally, 85 percent of consumers expect brand ethics to influence their future shopping decisions, highlighting the growing importance of sustainability and corporate responsibility in retail strategy.
Cross-Border Commerce Opportunities
The report highlights significant opportunities in cross-border retail, with 94 percent of international shoppers expecting to pay in their local currency. However, success in this area requires addressing key consumer concerns.
- 56 percent worry about long delivery times.
- 52 percent are concerned about fraud risks.
- 47 percent cite difficult returns processes as a barrier.
Retailers who effectively address these concerns while offering localized payment options stand to capture significant international market share.
Taking Action
For retail business leaders, the message is clear: payment strategy can no longer be an afterthought. It must be a central pillar of business strategy, driving customer satisfaction, loyalty and revenue growth.
Learn more about payment optimization and explore case studies with practical, real-world examples by downloading the full Worldpay Retail Payments Performance Report.
MICHAEL MCCLELLAN serves as the Enterprise Direct Selling Strategic Sales Manager at Worldpay, drawing upon a wealth of experience exceeding 25 years in the realms of direct selling, payment solutions and international business development. His comprehensive background encompasses strategic growth initiatives, payment technologies and the global expansion of markets within the direct selling industry.
From the December 2024 issue of Direct Selling News magazine.
