Gen Z shoppers most likely to abandon carts over payment options
A PYMNTS Intelligence study found that shoppers often abandon online purchases when a retailer does not accept their preferred payment method, with Gen Z most likely to do so. The findings suggest that limited checkout options could cost retailers sales and make it harder to attract a younger generation whose spending power is expected to grow.
In the previous 30 days, 36 per cent of Gen Z shoppers and 31 per cent of millennials abandoned a cart for this reason, compared with 15 per cent of Gen X and 8.3 per cent of baby boomers and seniors. The study estimates that 40 million Gen Z and millennial consumers walked away from intended purchases in one month; 47 per cent of Gen Z had used a digital wallet online in that period. PayPal was unavailable for 17.7 million abandoned purchases, including 11.1 million linked specifically to the absence of PayPal Pay Later.
- Gen Z shoppers are most likely to abandon carts over missing payment options.
- 40 million Gen Z and millennial shoppers walked away in one month.
- Digital wallets and buy now, pay later options may affect retailer sales.
New here? Start with this
When people shop online, they expect to be able to pay using their preferred method, whether that's a credit card, PayPal, digital wallet or another option. If a retailer doesn't offer the payment method a customer wants to use, that customer often abandons their shopping cart without completing the purchase.
Younger shoppers are significantly more demanding about payment options than older customers. Different age groups have grown up with different payment technologies and expectations, and Gen Z consumers in particular have developed strong preferences for digital wallets and payment apps. For retailers, this means the choice of payment options they offer has become a competitive issue.
Retailers losing customers at the checkout stage due to limited payment options means missing out on sales. With tens of millions of younger shoppers now holding purchasing power, and that group's spending expected to grow significantly, the payment methods retailers offer could affect their ability to attract this important customer base.
Read the full article at the source →
Originally published by Engadget as “Online retailers that don’t support digital wallets are losing Gen Z customers”.