In the next 12 months, we expect the evolution of payment technology to continue as the demand for alternative payments expands. Some of the key trends that emerged in 2020 and 2021 will become even more prominent in 2022, and new promising payment options will also make an impact. As such, it’s essential to keep an eye on these trends to stay ahead of the curve. So, what can we expect to see this year?
We’re heading to hybrid e-commerce and in-store models
The fashion industry experienced a reckoning in the wake of lockdowns. Physical stores had to close down – either temporarily or permanently. As consumers migrated online to buy goods, a significant challenge for many retailers was boosting or implementing their e-commerce offerings. They needed a more creative approach to increase engagement and improve customer experience.
To remain competitive, fashion retail stores will need to unify these physical and digital experiences for a truly hybrid approach to meet the new normal. Those businesses that have already invested heavily in digitising and modernising their brick-and-mortar stores are well ahead in this regard.
Consumers will expect multiple payment options
As consumers shift towards online shopping, they become increasingly sensitive about their expectations concerning digital payments. According to a survey commissioned by Barclays, 89% of consumers believe a seamless payment journey is critical when choosing where to purchase goods and services. Over 30% of the respondents say they find it annoying to deal with multiple touchpoints before checking out.
Customers want convenient payment methods that allow them to choose the option that best suits them. These could include everything from PayPal, Alipay, Wechat, cryptocurrencies, and Bank-to-bank. No matter the payment method selected, the customer should experience the same seamless checkout process. Consumers are unlikely to complete a purchase when they can’t use their payment method of choice. 44% of UK consumers will stop a purchase if their preferred payment method isn’t accepted.
There will be a greater focus on sustainability
Sustainability will become more important for businesses across many industries. And a growing number of fashion retailers will integrate sustainability into their business strategy. Research shows that businesses with high Environment, Social and Governance (ESG) ratings experienced lower equity costs, lower debt costs, and lower costs of capital than businesses with poor ESG scores.
Casual wear to become the new normal
It’s expected that industry players will see permanent changes to both ways of working and consumer demands. The pandemic has changed a lot about our lives, from how we work out to how we dress.
The latest lockdown measures in various parts of the world encourage those who can work from home to do so. As they spend much of their time quarantined at home, consumers are ditching the formal attire and reaching for sweats pants and more casual alternatives. They are unlikely to return to how they dressed before the pandemic any time soon.
For this reason, brands will also likely shift their focus to casualwear. There is already a significant rise in demand and online sales for “work from home” clothes and footwear. Also, “at-home workouts” have increased demand for sportswear, especially cycling shorts and leggings.
The post-pandemic industry is evolving to provide fintech solutions focusing on seam customer experience. While there are costs and risks involved in implementing new payment systems, seamless payment solutions could benefit fashion retailers. Get in touch with Multipay Global Solutions to discover how your business could take advantage of alternative payment trends in 2022.