Page 319 - AMC January 2020

As younger generations mature and their spending power increases, it makes sense that how customers want to pay for things is changing, as well. No longer can retailers accept credit cards, checks or cash alone as their preferred payment methods but instead, the savviest of retailers are welcoming payments that include currencies, platforms and programs among their collective payment options—with installment payments leading this change. catch? This includes how they choose to pay for what they want. With payment options that include scan and go payments such as Apple Pay to installment payments that do not rely on credit such as Afterpay and Sezzle, consumers know they have options—and expect retailers to have them, as well. In fact, MoneyTips.com explains that “millennials tend to be the most cautious with credit—perhaps because many of them came of age during the housing crisis and The idea of shopping now and paying later is not a new one. After all, this is essentially what credit cards have always offered to consumers. The difference now, however, is that many customers do not want to get credit involved at all. With both millennials and Generation Z1 driving this transformation, merchants who do not shift their forms of payment acceptance, risk not gaining dollars from this core consumer audience. Yet what new payments make the most sense for retailers? How exactly do they work? And most importantly... why do these new payment options matter? WHY IS INTRODUCING NEW PAYMENT OPTIONS IMPORTANT? With consumers having access to shop at nearly every twist, turn or touchpoint they make nowadays, creating frictionless shopping experiences is essential in both capturing and keeping their attention. The subsequent recession.” Expanding on this, TD Bank revealed in a recent survey that nearly 25% of millennials do not even have a credit card, and an astounding 82% believe our society will eventually become cashless2. Considering this, it’s critical to accept the reality that technology-led payments are increasingly becoming important for retailers— particularly apparel, accessory, home goods and novelty boutiques—to incorporate into their businesses. WHAT ARE INSTALLMENT PAYMENTS? The idea of shopping now and paying later is not a new one. After all, this is essentially what credit cards have always offered to consumers. The difference now, however, > AmericasMart.com | 299