In the past two years, there has been a substantial shift in consumers’ attitudes towards shopping and many have become increasingly careful about how they spend their money. Shoppers have become increasingly vigilant when it comes to caring for the environment and supply chain issues and most recently, how they’re spending during the cost-of-living crisis. 63% of adults are worried about their finances now, compared to 36% during the pandemic, research from Aegon has found.

New challenges will continue to emerge in the eCommerce market and, while we’re yet to truly understand the impact that double-digit inflation will have on consumers, shoppers are still expected to take advantage of the sales period to make their purchases while discounts are available. Today’s consumer will place far more focus on high-quality customer experience (CX), sustainability and ESG, and merchants will need to adapt to make eCommerce work for changing customer needs in order to be successful.

Alongside surprise and delight moments that create a sense of excitement for each shipment, the customisability and time-savings factor, alternative payment methods such as subscriptions generally save customers money in the long run. The popular phrase “subscribe and save” rings true for most subscriptions that customers are investing in. Whether consumers are looking for replenishment items like laundry detergent or toilet paper or more curated goods like craft supplies, consumers are leaning into the convenience of subscriptions arriving at their door at regular intervals.

It’s not surprising to hear that the subscription market is rising at an unprecedented rate — the global market value will grow to $275 billion in 2022 according to new research from Juniper. In recent years, new subscribers flocked to the subscription market, leading to dramatic year-on-year growth and subscriptions became more than something new to try — they became a reliable part of consumers’ daily lives. Subscriptions aren’t the only alternative payment model on the rise. The pandemic saw a greater shift towards digital payment methods and the number of people using digital wallets is expected to reach 4.4 billion by 2025, with QR codes accounting for 40% of all digital wallet transactions. As such, to drive sales, merchants need to adapt to ensure they make their services compatible with an increasingly digital world.

Alongside budget and value considerations, many people will look to spread costs this holiday season, buying gifts from stores with Buy Now Pay Later (BNPL) options that allow them to pay in instalments. Breaking up payments is already popular: A recent study found that consumers aged 18–24 have been the most reliant on BNPL services in 2022, with four in five users (80%) upping their spend. Users aged 25–34 have increased spending through these services the second most, with three quarters using them more regularly.

To capture all possible sales and provide a seamless experience for shoppers this holiday season, merchants need to evaluate their payment options and ensure these are aligned with customer wants and needs. At PagoNxt, we wanted to make payments easier for everyone, anytime even if that meant supporting businesses and merchants to kick off the holiday spending season in early December.

Merchants must focus not only on providing high-quality goods at the best price but also on providing a knockout customer experience. This can then lead to higher customer lifetime values (CLVs), the holy grail of customer loyalty.

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