To provide insight on global online shopping behaviors, Worldpay surveyed 20,000 consumers from ten different countries for the 2016 “Why Do They Pay That Way?” report.
The rise of the Super-Shopper
International buying power in the Internet age is highly concentrated within a group of high-spending, high-frequency Super-Shoppers, who account for 62 percent of all online spending for physical goods each year. Though Super-Shoppers represent just 13 percent of consumers worldwide, from March 2015 to March 2016 Super-Shoppers spent an estimated $372 billion on physical goods, while the remaining 87 percent of the internet shopping population spent $231 billion in a year.
Super-Shoppers tend to be concentrated in high-growth and development markets such as Brazil and Mexico, with the U.S. having the greatest number of Super-Shoppers as a proportion of population in the world at 11.37 percent. On average, Super-Shoppers are 37 years old and tend to be in the upper income class of their home country.
The Super-Shopper wants to pay their way
This new phenomenon cues businesses to focus on the preferred payment methods of a distinct category of consumers whose behaviors are significantly different than the rest. Globally, 52 percent of Super-Shoppers preferred to use a credit card to pay for physical goods online, and in the U.S. 48 percent of Super-Shoppers were most likely to purchase goods with a credit card. Super-Shoppers want to pay their way so much so that 52 percent of global Super-Shoppers and 72 percent of U.S. Super-Shoppers would abandon their purchase if unable to pay with their preferred payment method.
Therefore, it’s important for retailers to provide a full range of payment options, or they may be faced with lost sales. The report estimates that the cost to each retailer of a lost transaction could be as much as $144, a significant amount of lost revenue from such frequent and high-value shoppers. Also important to note is that credit card preference and purchase abandonment habits span across global markets with otherwise diverse cultures. With this global group of consumers holding the most buying power, it’s essential for businesses to establish payment processes that suit the behaviors and preferences of all Super-Shoppers.
The 2016 “Why Do They Pay That Way?” report provides further detail about the behaviors of online consumers and offers strategies for retailers to capitalize on these findings.
To learn more, read the full report here or visit worldpay.com.