BigCommerce: Mobile Payments Could Be a Much Bigger Part of Operations
The universal profit equation is a fairly simple one: raise revenue and / or lower costs to raise profit. We’ve heard before about how mobile payments could be a cost-savings tool, and that’s pretty good news. Now, a BigCommerce study sent our way says that mobile payments could also be a revenue-generator as well.
The BigCommerce study notes key facts: one in every three dollars of discretionary income is now spent online. That’s a hefty slug of change, and a lot of cash that’s not going to brick-and-mortar stores. But more importantly, virtually all offline purchasing is influenced by digital channels.
This means that even offline shopping operations need an online component. The study also noted that 80 percent of respondents had bought something from the Amazon marketplace in the last six months, while only 65 percent had bought from a brick-and-mortar shop.
Further underscoring the importance of digital is the revelation that 33 percent of shoppers will try to price match a product online, while 39 percent will visit a brand’s website before buying. It’s also vital to offer payment options; 36 percent were willing to buy a more expensive option if financing was available–which splits the pain nicely into several-month installments that don’t feel near as bad as one big check–and 33 percent noted that, if there hadn’t been financing available, there would be no purchase.
BigCommerce product officer Jimmy Duvall noted “…Our hope is that by providing merchants with a deeper context of how consumers are actually shopping today, we’re better equipping them with both the tools and the knowledge to create experiences that drive conversion and continued loyalty.”
Essentially, the report proves that brands can no longer afford to be just in stores. Sure, some smaller places that build local rapport and offer things not readily available online can potentially pull it off, but for anything with locations in, say, more than one state, the expansion to online must be carried out. This includes mobile payments, because as we’ve seen, mobile is one option among many and customers want options.
If there weren’t already a case for modernization in the retail landscape, the BigCommerce study would have done the job. Now, it’s left to see what businesses will actually do with this new information.