Creative Payment

People will get increasingly creative with payment options. When people used to step up to the register, payment options were as simple as “cash or credit.” Not so much anymore as an increase in alternate payment methods such as buy now, pay later (BNPL), digital wallets and person to person have come to the fore.

With so many people facing increased financial pressures, these methods will be seen as a welcome (if risky, in the case of BNPL) trend. Use of digital wallets and contactless cards will continue to grow. It’s worth noting that one study reflected that 57% of Gen Z respondents use mobile wallets.

Another study found that three in five people surveyed have used a BNPL option at checkout to finance a purchase. As recession looms, some experts anticipate that usage of the platforms could grow, widening the risk for potentially overextended consumers, especially younger ones. 32% are looking for more ways to finance purchases and delay payments.

Indeed, 32% of people in our Vericast survey acknowledged they are looking for more ways to finance purchases and delay payments.Heading into 2023, look for an increased reliance on credit and alternative loan products. The to-do for retailers looking to win that swipe? According to Lisa Nicholas, Vice President of Strategy, Financial Services, continue to make online shopping and checkout easier while catering to that growing segment of digital wallet and instant-issued card users.

“We will see more and more people turn to credit to cover their purchases as prices for home heating, groceries and other necessities continue to rise,” Nicholas says. “Financial institutions can send the message that they are working for — and not against — their customers by aligning themselves to their customers’ financial health and wellness.” Nicholas contends that payment options and preferences are continuing to evolve for consumers so issuers must stay agile to remain top of mind and wallet.

We will see more and more people turn to credit to cover their purchases as prices for home heating, groceries and other necessities continue to rise..