Shoppers ditch cash in favour of in-app payments
UK shoppers are actively avoiding retailers with outdated payment methods, according to new research.
A survey of 2,000 British shoppers by supermarket app Ubamarket revealed that over 10 million people, or 20 per cent, would avoid shops that only accept cash.
A staggering 37.5m people (73 per cent) had also changed their mindd and decided not to purchase an item because of the size of the shop’s queue.
More than half (53 per cent) also said that they found queues the most frustrating thing about the retail experience.
Ease of payment has now become a “make-or-break” factor among shoppers choosing where to shop, with 32 per cent saying they would pick an online or high-street retailer based on how easy it is to pay for items.
A fifth of shoppers said that in-app payments were their favourite method of paying for items, rising to 34 per cent among 18 to 34-year-olds.
However, when it came to in-store, almost half (48 per cent) said they hated using self-scan machines.
Looking to the future, 21.1m people, or 41 per cent, believed that all payments would be made via mobile devices, increasing to 53 per cent among millennials.
Will Broome, chief executive of Ubamarket, commented: “Over the past decade, major retailers have taken some strides to improve in-store shopping by embracing new technologies. However, today’s research reveals that long queues and frustratingly outdated payment systems remain a significant challenge that are ruining millions of shopping trips, and therefore must be addressed. Despite the rise of online shopping, it is clear that retailers need to invest in the in-store shopping experience to maintain shoppers’ loyalty in today’s competitive market.”
Robert Capps, authentication strategist and vice-president at NuData Security, said: “New research findings from retailing app Ubamarket – specifically that consumers are rapidly moving away from cash transactions, that 73 per cent reject transactions that mean standing in a queue and millions of us actually avoid cash-only retailers – confirms what many already instinctively knew.
“Digital-only transactions are merely a matter of time, and very little time at that. Instant, frictionless transactions are an order-of-magnitude improvement over carrying and fumbling for currency, and waiting on other customers and the cashiers, and an improvement with enormous residual benefits. The simple transaction histories that digital transactions provide mean the consumer can track and understand their spending patterns. Saving and organising receipts becomes a thing of the past.
“While most expect millennials to readily embrace digital transactions, their ease of use and enduring data capture make digital transactions the preferred purchasing method for consumers of all ages. We just need to ensure that we are providing the most seamless and convenient journey along the way, while ensuring the e- and m-commerce organisations are not taking on more risk in that journey. And there are means to do just such a balancing act in today’s digital journey.”