UK CONSUMERS REMAIN CAUTIOUS ABOUT RETURN TO NORMALITY FOR STORES AND VENUES

Figures published by Paysafe signal need for businesses to re-think the consumer experience as 54% of consumers don’t plan to shop in store as frequently post lockdown

 

While the current plan to lift all physical restrictions in the UK on June 21 will hopefully go ahead, bringing a welcome ‘return to normality’ for businesses, research published by leading specialised payments platform Paysafe revealed that 54% of UK consumers say they don’t plan on shopping in stores as frequently as pre-pandemic. With 42% of respondents planning to shop in stores less, and a further 11% to shop online only, offline businesses need to be mindful of new consumer preferences and behaviours and understand how they should adapt for future success.

 

Paysafe’s Lost in Transaction consumer payment trends research was conducted by Sapio Research and includes survey insights from 1,000 UK consumers on their expected payments and lifestyle habits post-COVID-19*. It signaled that in spite of some excitement about the restrictions soon potentially lifting in full, consumers are still cautious, and many industries will need to make adjustments to encourage customers back to physical locations. 34% of consumers plan to visit bars and restaurants less often than they did before COVID-19, 42% plan to visit nightclubs less, 34% are planning to attend less concerts and sports events after the pandemic and 38% plan to make fewer visits to cinemas and theatres.

 

In their bid to encourage customers back in person, the research pointed to a number of focus areas for businesses, including the safety of the checkout experience. This is something consumers have paid close attention to during the pandemic, with over two-fifths (44%) of respondents agreeing that it was noticeable which in-store retailers had adjusted their checkout experience and the same number saying they were less likely to shop in stores that hadn’t done so. Checkout speeds also being prioritised by UK consumers, with 38% seeing this as a more important factor to them than pre-COVID.

 

According to the findings, another area businesses need to focus on is continuing to diversify their payment options and increase awareness of those already available. Choice remains key: over a quarter (26%) of consumers stated that they will no longer shop in stores that do not offer contactless payments – but another 26% said the same for stores that are no longer accepting cash. When it comes to ecommerce, 34% of UK consumers are now more familiar with alternative online payment methods and 27% are more likely to use a different option to a credit or debit card when making an online purchase.

 

The research also highlighted a lack of awareness surrounding newer payment methods, with 30% of UK consumers still not knowing enough about in-store QR codes to consider using them as a payment method, and a similar number feeling the same about frictionless checkouts like Amazon Go (26%) and smartphone apps (22%).

 

Danny Chazonoff, Chief Operating Officer at Paysafe, commented: “As UK restrictions continue to lift and consumers adjust to new freedoms, the climate remains uncertain for businesses and retailers. While there are differing schools of thought on whether we’ll see a resurgence quite on the same level as the Roaring 20s, our research points to consumer behaviour changing for good and business strategies will need to align with these new preferences. Going forward, for businesses to remain competitive, they need to reassess their priorities – two of which will be diversifying payment offerings and maintaining the delivery of a seamless and frictionless checkout.”

 

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