NEWSTORE RETAIL ACADEMY

Conversion - Mobile Experience - Payments

Why Can’t Payment be Pretty?

By Casey Antonelli - January 10, 2018

I’ve been doing a bit of shopping for furniture and home decor lately. Not because I need anything, but because the closet in my new house is drastically smaller than my last and I literally can’t buy another piece of clothing or I’ll have to hang it in the kitchen. Instead of going cold turkey and cutting out shopping entirely, I’ve shifted my focus to buying items for my home.

Through my new shopping habits, I’ve discovered two things: shipping is far more expensive, and most brands don’t offer checkout via Apple Pay. Does that matter? It absolutely does, especially if a brand wants me to fall victim to the urge to buy a new couch on a whim, or replace my 100% functioning Keurig machine simply because the design is nicer now.

A great example… last night, I placed an online order for a Brita, mainly because I had a 20% off coupon and was on a shopping spree. I placed the order and shut my laptop. When I opened it back up in the morning I came to find a payment error. The order had not been processed because the credit card information saved in my browser was out of date. Rather than type in my new card information, I decided to abandon the purchase. Of course, this is my fault and not the brand’s, but had they offered checkout via Apple Pay, it would have gone through immediately and I never would have looked back.

The simplicity of instant payment leading to higher conversion is only one of the major benefits of Apple Pay. It is also far more secure than traditional credit cards or even cash. There are two factors to this enhanced security. First, every transaction can easily be made to require a pin code or thumbprint. Second, the major mobile payment providers like Apple, Google, and Samsung all use tokenization to ensure the card number isn’t stored on either the consumer’s phone or the retailer’s POS terminal.

In our 2017 research for the NewStore Mobile Retail Report, we found an encouraging increase in Apple Pay adoption at brands. Thirty-four percent of brands we researched were using the mobile payment service in 2017, as opposed to 11% in 2016. Interesting enough, our numbers are actually slightly lower than what Apple has touted; according to Jennifer Bailey, Apple’s VP of Apple Pay, late last year she revealed at Money 20/20 that more than 50 percent of all retail locations in the U.S., including 67 of the top 100 US retailers are actively using Apple Pay.

While there is room for improvement still, I’m glad to see the industry moving in the right direction. For more data on how the top 140 luxury, lifestyle and apparel brands perform in terms of addressing omnichannel and the ultimate customer experience, download the free report here: www.newstore.com/mobile-retail-report.