More Americans, especially young ones, are enamored with cash. Cash usage has skyrocketed among Gen Z, far outpacing the cash habits of Baby Boomers and Gen X, according to a Credit Karma survey. You may have even seen Tik Tok videos about the cash stuffing trend, where influencers turn empty bottles and envelopes into makeshift piggy banks.
At a time of inflation and high interest rates, younger customers are looking for ways to keep cash on hand and stay in control. They also don’t want to be beholden to a credit score, which, for Millennials and Gen Z, continues to hover around 680, limiting access to credit.
Getting customers to the sale when cash is king may seem challenging, but there’s a silver lining. Alternative payment options at the point-of-sale bring choice, speed and affordability to transactions that can easily override a wad of dollar bills. Here are a few considerations for retailers looking to capitalize on payment solutions.
Offer a range of payments
Lease purchase programs are a convenient way for customers to get the items they want now, without a big upfront payment or long-term commitment. These programs offer a selection of retailers, affordable payments, and flexible choices on how to purchase items like furniture, appliances, electronics, and jewelry. Lease-to-own is an attractive option for customers of all financial backgrounds that want to spread out a purchase using regular payments, making it a great way to bring younger customers to the point of sale.
One in five Americans are using installment programs like Buy Now, Pay Later, which has wide appeal because it’s interest free and doesn’t impact credit scores. Customers pay over time, while retailers get paid upfront, benefitting both. Features like split payments can help boost cart sizes, and with lower upfront payments, retailers enjoy increased conversions and reduced cart abandonment.
Keep terms transparent
When your customer is already through the purchase funnel and wants to complete the transaction, but with the payment method of their choice, you want to support them at this crucial moment. Cost transparency is fundamental to your success and customer satisfaction.
Make the experience frictionless
Retailers don’t want to make customers wait, and a clunky payments platform can turn them away. The best technology will work seamlessly with e-commerce, app-based, and brick-and-mortar retail platforms.
Consumers are also returning to brick-and-mortar stores after years of online sales growth. The brick-and-mortar experience will be transformed, with transactions happening faster and more seamless than ever. Options like buy online, pick up in store are helping consumers become more comfortable shopping across channels, depending on what is most convenient or cost-effective for them. A payments platform should be able to support this evolution, and also provide both retail partners and customers with excellent service and support.
Retailers, take note: Today’s customers want to be seen as empowered and informed. If you want them to think beyond cash, give them the tools to pay how, when and where they want.
Mike Giordano is Chief Commercial Officer of Progressive Leasing, a provider of in-store and online leasing options. Progressive Leasing’s parent company, PROG Holdings, provides innovative purchase options and flexible payment terms for consumers at thousands of national, regional, and local retailers. Mike Giordano became Progressive Leasing’s Chief Commercial Officer in January 2021. He joined the Company from Samsung Electronics America, where he served as Vice President of U.S. Sales from 2018 until his departure and was responsible for managing the development and implementation of marketing and sales strategies for driving in-store and e-commerce home appliance sales to consumers. Mike received his Bachelors in Secondary Education from the University of Scranton, and his Masters of ED in Instructional Tech from Arizona State University.
