The 2020 e-commerce surge created shopper affinity around the world for retailers that offer digital payments with adoption of digital wallets, digital gift cards, QR codes and barcodes accelerating in the past 12 months, reports Douglas Blakey

Digital payment methods have an impact on how shoppers feel about a particular brand—and how likely they are to frequent that retailer. The rise in digital payments is a bright spot for retailers that are embracing digital payments, according to global payments provider, Blackhawk Network’s Global Digital Payments study.

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With a sample size of more than 13,000 respondents in nine countries, representing nearly half of the world’s card payment volume, the Blackhawk report merits attention. Surveyed shoppers across all nine countries report they will spend more money and have a deeper affinity for retailers that offer more digital payment methods.

Key trends from the report

  • Along with shopping more frequently (69%) and spending more (54%) at retailers where they can use digital payments, a majority of shoppers surveyed (85%) also reported that digital wallets have made shopping easier, and
  • The top retail segments where digital wallet users are using digital payment methods the most are: online-only retailers (41%), grocery stores (37%) and mass merchandisers (26%).

QR codes were one of the most used new digital payment tools during the pandemic.
QR codes, or barcodes on a mobile device, emerged with new digital wallet users during the pandemic—and were used more frequently at grocery stores and online-only retailers.

  • For example, some 18% of respondents used a QR code or barcode for the first time during the pandemic, and 40% report using them more frequently, and
  • QR codes offer opportunities for retailers looking to gain a share of the growing digital wallet user audience, with 30% of non-users being interested in using barcodes or QR codes.

There are however notable regional variations. Barcodes and QR codes, for example, were used by 85% of Indians but only 24% of Canadians.

Gift cards helped people connect to eCommerce in 2020

With an ability to be easily bought and used through online-only retailers and essential businesses—like grocery stores—shoppers turned to gift cards. Digital gift cards also saw huge increases in popularity since they are an easy contactless payment option to send and use.

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  • Digital gift cards got a boost from self-use: 34% of respondents reported purchasing a physical or digital gift card for themselves in the last year. Additionally, 46% of respondents report being interested in digital gift cards to make purchases online, and
  • Digital gift cards were used most at online-only retailers. Nearly half of surveyed digital gift card users have used them at online-only retailers in the last year—though Brazil and Australia residents are least likely to use them at online-only retailers.

For residents of Australia, more than half of digital gift card users used them at grocery stores.

The gap between buying gift cards as a gift and buying them for self-use essentially disappears for digital gift cards. While plastic gift cards are more likely to be bought as a gift for someone else, digital gift cards were purchased for either use at very similar rates.

 Gift cards drive traffic

Gift cards continue to be popular with shoppers from around the world. Internal research and anecdotal experience at Blackhawk Network has shown for years that gift cards boost loyalty programme sign-ups and engagement. Results from this survey show that gift cards can be especially effective at driving traffic, trial and spend for shoppers in India, Mexico and Brazil. Shoppers in these three countries were most likely to score higher than the global average for a variety of actions.

In-store shopping will rebound

Since the pandemic, two-in-five respondents have been making in-store purchases less frequently, but once shopping returns to pre-pandemic levels, slightly more shoppers will return to in-store than online.

The report notes that 55% of in-store shoppers plan to continue in-store shopping when shopping centres return to pre-pandemic levels, compared to 53% of surveyed consumers who will buy online and opt for at-home delivery. Consumers have missed the in-store shopping experience. Notably, some 51% of surveyed shoppers rank the ability to see and touch items in-store before making a purchase as one of the most important factors when they are able to return to their pre-pandemic shopping habits.