Summer 2021 - 122

RETAIL OPERATIONS
AN
UPTICK IN
DIGITAL
PAYMENTS
A look at how retailers are using
digital payment methods
BY KEITH LORIA
Contributing Writer
A
lthough digital payments started to become
popular before 2020, once the pandemic hit,
this was a must-have option for any retailer
doing business online, in-person or both.
In the report, " The State of Retail Payments In 2020, "
put out by Forrester Research, senior analyst Lily Varon
noted 19% of U.S. adults used a digital payment in
store for the first-time ever during the pandemic's first
months. Additionally, 62% of consumers overall utilized a
smartphone to make a contactless payment.
Leon Buck, vice president, government relations
banking and financial services for the National Retail
Federation shared that these numbers are just the tip
of the iceberg of what's happening in 2021, as digital
payments have become the norm for many over the
last year.
" It's become a lot more popular, " he said. " We did
a survey amongst our retail members a few months
into the pandemic and almost 70% said they were now
accepting contactless payments and that's probably
closer to 75% now. "
What has really increased, he noted, was the thirdparty
wallet platforms like Apple Pay, Google Pay and
some retailers even have their own.
BENEFITS ARE MANY
Many customers prefer digital payments because they're
faster, considered more secure, and when COVID first hit,
were thought to be safer since they didn't have to touch
money that someone else had touched.
" The main pro is it's easier and faster; you're in and
122 SUMMER 2021 GIFT SHOP® PLUS
out of the store without having to go through a checkout
person, " Buck said.
For retailers, using digital payments helps to give the
customer more options based on what is convenient for
them in the moment.
For example, Pria Maineri, owner of 88kitty, a candle,
soap and bath bomb gift store in Los Angeles, noted that
offering the ability for customers to use digital payments
has been received very positively-first when it was
selling in farmer's markets, and ever since it moved into
its retail location in October.
" Customers enjoy the convenience of using digital
payments so we love to offer this feature and create a
faster checkout, " she said. " Originally, when customers
would ask if we accepted digital payments, we used to
wince about how we had to say no. Customers would come
with cash budgeted for groceries, and see our candles as an
indulgence, and thus wouldn't have any extra cash with
them. By offering digital payments, customers could just
whip out their cards and still get the items they wanted. "
That allowed the customers to shift focus from payment
to enjoying the candles and gifts. Currently, the store is
using Paypal Here and Venmo, where customers can scan
QR codes that are posted in-store.
" We try to offer as many mainstream digital payment
solutions as possible so customers can quickly confirm we
do take their preferred method, and then quickly move
on to enjoy the shopping experience they came to have, "
Maineri said. " I also like the credibility it builds, when
customers see the payment forms we accept, it leads to an
easy integration into their own shopping habits. "
Summer 2021

Table of Contents for the Digital Edition of Summer 2021
