Digital payments are transforming the grocery store

As connected technologies increasingly make their way into the grocery industry, digital payments, both in-store and online, are changing the way consumers interact with merchants.

Overall, in-store purchases remain by far the way most consumers buy their groceries, but its share of total grocery purchases is declining, according to findings from PYMNTS’ Digital Economy Payments study.

Based on a survey of more than 2,700 US consumers about their shopping habits, the latest edition, “Digital Economy Payments: The Rise of Mobile E-Commerce,” reveals that 84% reported buying groceries in-store. This share is down from 85% in the previous two quarters and 87% in December 2021. The decline is modest but notable, and e-commerce giants continue to weed customers out of brick-and-mortar stores, product category by product category. product.

Get the study: Digital economy payments: the rise of mobile e-commerce

“Subscription services like Amazon Subscribe & Save and [direct-to-consumer (D2C)] specialty brands are reducing shopping in the center aisle of grocery stores, of course, at different rates with different merchants in different countries, and will be for some time to come,” PYMNTS’s Karen Webster observed in a September article.

In fact, a significant portion of consumers buy groceries online. According to data from the July issue of PYMNTS’ ConnectedEconomy™ series, “The ConnectedEconomy™ Monthly Report: The Rise of the Smart Home,” which was based on a survey of more than 2,600 US consumers, 40% order groceries online. line for home delivery every month. Also, most eGrocery customers do this once a week or more.

Read the report: ConnectedEconomy™ Monthly Report: The Rise of the Smart Home

When it comes to groceries online, mobile is the way to go, the Digital Economy Payments study reveals. He noted that 10% of consumers shop for groceries online using a mobile device. Instead, only 5% do it online using a computer.

In fact, mobile grocery shopping continues to rise, while computer shopping is on the decline. In December 2021, only 7% of consumers reported shopping for groceries on mobile devices, and at the time, 6% were shopping for groceries on their computers.

These online grocery shoppers expect fast and convenient payment options. PYMNTS study “How We Pay Digitally: Stored Credentials Edition,” created in collaboration with Amazon Web Services (AWS), presenting the results of a survey of 2,100 US consumers, finds that 63% of customers from eGrocery reported using stored payment information to make these purchases in the 30 days prior to the survey.

Download your copy: How We Pay Digitally: Editing Stored Credentials

Meanwhile, through digital and physical channels, digital wallet payments are becoming more popular. Data from PYMNTS’ October study “Connected Wellness: The Next Recipe for Healthcare Providers: Digital Wallets,” which is based on a September survey of a Census-balanced panel of more than 2,600 US consumers, reveals that 24% of those surveyed had used digital wallets to pay for their most recent grocery purchase.

See the study: Connected Wellness: The Next Recipe for Healthcare Providers: Digital Wallets

Digital wallets aren’t the only connected technology changing the way consumers pay for purchases in stores. State-of-the-art self-checkout features are also transforming the process. In September, grocery tech giant Instacart announced its Connected Stores package. The move includes a redesigned Caper Cart smart cart that helps customers navigate the store and then check out without manually scanning items, as well as a Scan & Pay feature that allows customers to scan items as they shop and then pay for them at their mobile phones.

“We believe the future of groceries will not be about choosing between shopping online and in-store – consumers will do both,” Instacart CEO Fidji Simo said in the press release. “The launch of Connected Stores is another exciting step for Instacart as we partner with retailers to help invent the future of groceries.”

How consumers pay online with stored credentials
Convenience drives some consumers to store their payment credentials with merchants, while security concerns stop other customers. For “How We Pay Digitally: Editing Stored Credentials,” a collaboration with Amazon Web Services, PYMNTS surveyed 2,102 US consumers to explore the consumer dilemma and reveal how merchants can beat holdouts.

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