INGENICO GROUP: Checkout Turbulence: Ingenico and FreedomPay Study Reveals Shoppers’ Frustrations and Desires at the Point ...
14 January 2020 - 1:25PM
INGENICO GROUP: Checkout Turbulence: Ingenico and FreedomPay Study
Reveals Shoppers’ Frustrations and Desires at the Point of Sale
Press Release
Checkout Turbulence: Ingenico and FreedomPay
Study Reveals Shoppers’ Frustrations and Desires at the Point of
Sale
Ground-breaking study reveals more than half of
consumers have encountered technical issues at checkout; shoppers’
desire for simple, secure transactions and maximized loyalty
benefits is driving adoption of contactless
Atlanta, Ga. – January 13, 2020
– Ingenico Group (Euronext: FR0000125346 - ING), the
global leader in seamless payment, and FreedomPay, the world’s
leading consumer-centric commerce platform, revealed the results of
a survey on merchant and consumer perceptions about payment
technologies used as part of the customer experience in retail
stores. The study showed that while technology is indeed quickly
evolving for the better with more payment options, there is still
frustration for consumers at checkout. More than half of shoppers
have experienced a technical issue at checkout at some point,
demonstrating a disconnect between merchants’ efforts and the
shopper’s actual experience. The good news for retailers is that
the numbers show they can quickly close the gap with contactless
payment, as 75% of shoppers find the technology easy to use for
purchases and loyalty programs.
The study, “Emerging Trends at the Point of
Sale,” conducted by Hanover Research, takes a deeper look into
understanding what consumers are thinking when it comes time to pay
in retail stores and what technologies merchants are implementing
to enable their customers to check out quickly. The findings reveal
opportunities for retailers to build loyalty with their
increasingly-digitally native consumer base by offering them the
security and ease-of-use they require in a payment method, paired
with the digital capabilities they prefer for tracking purchases
and rewards. Key findings of the survey include:
2020 will finally be the year of
contactless, and age is a factor
- Age is a huge factor in driving contactless adoption: Gen-Z
(70%) and Millennials (75%) report satisfaction with contactless
payments and 65% of Gen-Z consider it a “must have” of
merchants.
- Consumers are satisfied with contactless: 72% say it is easy to
learn and 74% say it is convenient.
- About a third of consumers under 35 predict that merchants will
become 100% cashless in the next five years.
- 84% of businesses accept debit or credit card EMV contactless
payments, but only 37% of consumers are aware of the option.
- Ease of use could be a large contributing factor for adoption,
particularly for transactions under $25, 80% of which are currently
made with cash.
Loyalty: Give shoppers rewards on
everything
- The most important aspect of loyalty programs for consumers is
earning rewards on everything they purchase.
- 70% of consumers want to earn or redeem rewards without
providing sensitive information.
- About half of consumers have reported experiencing challenges
such as too many restrictions on spending
rewards.
Conflicting privacy response: Consumers
and merchants require security, yet shoppers want to be
tracked
- 87% of consumers and merchants identify security as the top
attribute when choosing a payment method.
- Younger consumers that are digital natives, however, use credit
or debit cards because they like that it enables them to track
their purchases.
“Even as shoppers are becoming savvier with
technology today, the majority don’t necessarily know what to
expect when they arrive at checkout because it’s not the same
experience everywhere they go,” said Mark Bunney,
director of go-to-market strategy, Ingenico Group, North
America. “Retailers are battling a series of
information gaps with their consumers, as they try to offer them
the latest capabilities for contactless cards and mobile wallets
while also correcting the perceptions they’re developing about
security and ease-of-use for these technologies.”
“Consumers in the U.S are growing increasingly
frustrated at the slow progress that has been made in addressing
the acceleration of technology at the point of sale. Whether it be
unclear or inconsistent messaging (e.g., contactless), disjointed
back-end systems, rapidly evolving and expanding payment options,
or a continued lack of properly-implemented payment security
solutions – consumers do not appreciate, and will not remain loyal
to, ‘the friction,’” said Chris Kronenthal, CTO and
president, FreedomPay. “This report gives a clear
warning to retailers to remain focused on using the latest payment
technologies to build the most customer-centric experience they can
and best-in-class commerce capabilities.”
Methodology
The survey was conducted in Q4 2019 by Hanover
Research and includes the responses of over 350 merchants and 1,350
consumers in the U.S. For more details on the full findings of the
study, please find additional resources here.
About Ingenico Group
Ingenico Group (Euronext: FR0000125346 – ING) is
the global leader in seamless payment, providing smart, trusted and
secure solutions to empower commerce across all channels, in-store,
online and mobile. With the world’s largest payment acceptance
network, we deliver secure payment solutions with a local, national
and international scope. We are the trusted world-class partner for
financial institutions and retailers, from small merchants to
several of the world’s best known global brands. Our solutions
enable merchants to simplify payment and deliver their brand
promise.
About FreedomPay
The FreedomPay Commerce Platform is the
technology of choice for many of the largest companies across the
globe in retail, hospitality, lodging, gaming, sports and
entertainment, foodservice, education, healthcare and financial
services. FreedomPay’s technology has been purposely built to
deliver rock solid performance in the highly complex environment of
global commerce. The company maintains a world-class security
environment and was first to earn the coveted validation by the PCI
Security Standards Council against Point-to-Point Encryption
(P2PE/EMV) standard in North America. FreedomPay’s robust solutions
across payments, security, identity and data analytics are
available in-store, online and on-mobile and are supported by rapid
API adoption. The award winning FreedomPay Commerce Platform
operates on a single, unified technology stack across multiple
continents allowing enterprises to deliver a consistent, repeatable
experience on a global scale.Find out more, please visit:
www.freedompay.com.
- PR_Ingenico_Freedompay survey release