27.05.2021 – 08:01
Payvision study shows 44% of retail consumers won't change their "COVID-19 effect' buying habits
1- In 2020, cross-border B2C e-commerce in Europe totalled USD842 billion
2- E-commerce physical goods subscription transactions in Europe will exceed $51 billion in 2021
3- Mobile payment apps (OEM) usage rose from 26% before COVID-19 to 39% during the pandemic
In a study conducted for Payvision in the Netherlands, Belgium and Germany, Kaleido Intelligence reports on how COVID-19 is influencing the retail landscape one year on.
Global retail spending fell dramatically throughout the 2020 lockdown as governments asked virtually all non-grocery retailers to close. Consequently, 2020 saw the biggest decline in in-store sales over the last 25 years. However, this was partially offset by the surge in panic buying essential goods at the start of the lockdown restrictions.
With lockdowns lifted, governments encouraged consumers to limit in-store shopping. This boosted global online sales by an annual growth of 9%. In Europe, online retail spends on physical and digital goods increased by USD116 billion in 2020 to reach a total of USD832 billion.
E-commerce will continue to play a critical role and businesses will need to accommodate this. To retain a competitive edge, retailers have been investing in digital transformation: chatbots, voice assistants, and messaging apps etc. In 2020, conversational e-commerce grew by 171% and reached nearly USD60 billion in transaction value globally and is forecast to reach USD200 billion in 2022.
Ellerd Liem, Director POS and Payvision, comments: "The key to a truly customer-centric shopping journey is in integrating all your sale points onto a single platform. Convenience, personalization, and seamless checkout should be at the heart of your customer's experience - no matter whether they're in a physical store or online."
International shipping and sales are a staple of future growth. Ultimately, this means competing with popular marketplaces and global retailers, so they'll need to meet consumer demand while offering fast delivery turnaround and specific payment methods for each market. OEM and invisible payment methods will eventually be expected alongside the traditional, as a 13% increase in the popularity of digital wallets for e-commerce has already been seen.
Ellerd Liem of Payvision explains: "Paying must be as easy and natural as possible. The customer should be able to checkout whenever is handy for them, at any point in the process. If they're not able to, this can lead to unnecessary friction, which means a risk that the customer could get frustrated and turn away from the brand."
A way around it is enabling subscription purchasing, increasingly popular. Across Belgium, Germany and the Netherlands 35% of respondents stated that they had increased the number of online subscriptions. Subscription transactions in Europe will exceed $51billion in 2021 and are set to reach $84 billion in 2025.
Payvision's findings are clear: it is time for retailers to adjust to the new post-pandemic climate, as 44% of consumers are convinced that their new buying habits will not change post-COVID-19.
Payvision is driven by a passion for technology and simplifying payments. With one single, secure platform, we power transactions for businesses across the globe. We know our way around the latest techniques in artificial intelligence and omnichannel strategies. The dedication to our clients shows - this is where we truly make a difference. By enabling an intuitive and flawless customer experience on all channels, we bring a unique beat to payments.
Founded in 2002, we're headquartered in Amsterdam, the Netherlands and since 2018 we are part of ING Group. This allows us to offer an unstoppable combo of both the fintech and banking worlds put together. This partnership means cutting-edge technology and a startup mindset backed by ING's expertise and global network.
Learn more about how Payvision takes the hassle out of payments at payvision.com.
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Original content of: Payvision, transmitted by news aktuell