58% of Gen Z Shoppers Prefer Debit Cards for Online Shopping
Few things must be as frustrating to an eCommerce merchant as cart abandonment.
But, as PYMNTS Intelligence found in compiling its “How Preferred Payment Availability Can Reduce Cart Abandonment” report in a collaboration with Adobe, merchants shouldn’t take cart abandonment personally. Our data reveals that millennials walk away from an average of five virtual carts a month, while Generation Z shoppers leave behind four carts per month.
And cart abandonment happens to all types of online merchants. PYMNTS Intelligence determined that, during the typical month, consumers shopping on brand sites abandon an average of eight carts, compared to six carts on retailers’ sites and seven on online marketplaces.
An initial takeaway: shoppers may be browsing brands’ sites for product information and pricing, perhaps with the intention to buy on the site offering the best deal.
However, our data shows that the real culprit behind cart abandonment — across all eCommerce platforms — may simply be a lack of preferred payment options. Giving customers the payment method they want appears to be an important driver behind their decision to buy.
So, what are the preferred payment options?
As with most things retail, the answer depends on the audience segment. Nearly 51% of baby boomers and seniors and 50% 0f Generation X shoppers prefer credit cards when shopping online. Millennials aren’t far behind, with nearly 41% also preferring credit cards. Only about one in four Gen Z consumers share the preference for credit cards.
Debit cards are another matter: they are the preferred online payment option for nearly six in 10 Gen Z consumers, suggesting perhaps these younger shoppers are trying to avoid debt. Forty-one percent of millennials also prefer debit cards when shopping online, as do 33% of Gen X consumers and 26% of baby boomers and seniors.
If Gen Z consumers are trying to avoid debt, it might explain why about 3% of them opt to buy now, pay later (BNPL) when shopping online; however, BNPL offers slightly more appeal to millennials (5.1%) and Gen X (5.4%). On the other hand, nearly 9% of Gen Z consumers prefer Apple Pay, far surpassing that preference among the other generations covered in the report.
As the report concluded, eCommerce merchants hoping to minimize cart abandonment should make a seamless and convenient payment process a priority on their website. However — depending on which demographic group they are hoping to win over — they would also be wise to ensure the preferred payment option is available. In fact, we found that 70% of all consumers say the availability of their preferred payment method is a significant factor in their online store choice.
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