Convenience, More Than COVID Safety, Spurs Continued Digital Grocery Shopping Practices, According to New ACI Worldwide and PYMNTS Study
September 02 2021 - 12:30PM
Business Wire
- Online grocery shoppers are highly mobile-oriented when it
comes to payments
- PayPal, Apple Pay and Google Pay among popular payment methods
for online shoppers
- In-store grocery shopping continues to hold promise for many
consumers
New data from ACI Worldwide (NASDAQ: ACIW), a leading global
provider of real-time digital payment software and solutions, and
PYMNTS.com shows more consumers are shopping online for ease and
convenience (76%) as opposed to avoiding potential COVID risks
(59%). The survey of 2,342 adult U.S. consumers, which addresses
grocery shopping habits since the start of the pandemic, also shows
that online shoppers are more likely to use mobile devices (55%)
than laptops and desktops (38%) to place their orders.
Additionally, 31 percent of online shoppers use PayPal, while 22
percent use other mobile wallets such as Apple Pay and Google Pay
according to the survey titled, What Consumers Expect From Their
Grocery Shopping Experiences.
“While the pandemic drove an undeniable shift to digital
shopping, it’s clear that consumers are more likely to continue to
use these methods due to their ease and convenience than for the
safety reasons that initially led them there,” said Debbie Guerra,
executive vice president, ACI Worldwide. “These consumers have
discovered the benefits of digital shopping and like what they’ve
found.”
According to the data, 34 percent of consumers shop for at least
some of their groceries online, and the share jumps to 57 percent
among millennial shoppers. However, physical grocery stores remain
of interest to most shoppers, with 94 percent reporting they shop
in-store at least some of the time, according to the survey. The
data also shows that although consumers tend to favor debit (56%)
and credit cards (51%) for in-store shopping more than contactless
methods, there is a strong interest in contactless payment methods
among millennials, with roughly 50 percent “very” or “extremely”
interested in contactless credit and debit cards, and digital
wallets to pay in-store.
“The survey suggests a potential lack of knowledge around
contactless terminals that may be leading to low adoption of
contactless payments,” Guerra said. “This presents a significant
opportunity for grocery stores to educate consumers on in-store
contactless payment options.”
According to the research, many consumers favor grocery stores
that serve as a one-stop shop for non-food items such as cosmetics
and clothing in addition to groceries. More than half (56%) of
consumers would consider switching grocery stores if it offered
additional products and services. Consumers also favor stores that
offer loyalty programs, with 54 percent saying they are members of
their favorite stores’ loyalty programs and 63 percent of these
members saying such incentives affect where they shop for
groceries. In fact, 60 percent of those who are members of loyalty
programs say that it leads them to spend more at the store.
“While the shift to digital shopping has been a boon for
merchants, the challenge is that a competitor is only one click
away,” Guerra continued. “That’s where loyalty programs can make a
difference. Offering consumers financial incentives to stick with
their preferred stores can go a long way for merchants.”
Key Findings:
In-store vs. online grocery shopping:
- 23 percent of shoppers use home delivery and 8 percent indicate
it is their most preferred channel.
- Curbside pickup is similarly popular with 20 percent using it
and 7 percent preferring it.
- Among those who purchased non-food products from grocery
stores, 27 percent say it was an incentive for them to visit the
store more often over the last 18 months.
- 49 percent of millennials say non-food offerings motivated them
to make more trips to the store
- 45 percent of Generation Z say so
- 43 percent of bridge millennials
- 22 percent of Generation X
- 12 percent of baby boomers and seniors
Delivery channels
- 14 percent of shoppers are purchasing groceries online with
home delivery more since the onset of the pandemic.
- 14 percent are doing so more via curbside pickup.
- 57 percent of millennial grocery shoppers purchase at least
some of their grocery products online.
- 15 percent have increased their grocery shopping in stores
since the onset of the pandemic.
- 21 percent are doing so less than they did prior to the
pandemic.
Digital and contactless payments
- 34 percent of respondents are “very” or “extremely” interested
in contactless credit cards and 31 percent in contactless debit
cards.
- 51 percent of bridge millennials and 50 percent of millennials
are interested in contactless credit cards.
- 49 percent of bridge millennials and 51 percent of millennials
are interested in contactless debit cards.
- 26 percent of consumers are “very” or “extremely” interested in
using digital wallets to shop for groceries.
- 48 percent of bridge millennials are interested in using
digital wallets.
- 49 percent of millennials are interested in using digital
wallets.
- 65 percent of online grocery shoppers use credit cards and 57
percent use debit cards to pay for groceries online.
- 56 percent of in-store grocery shoppers use debit cards and 51
percent use credit cards to pay for groceries in-store.
- 31 percent of online grocery shoppers use PayPal, while 22
percent use mobile wallets such as Apple Pay and Google Pay.
- 17 percent of online grocery shoppers use Apple Pay and 13
percent use Google Pay.
- 24 percent of shoppers report using at least one digital
shopping channel more often to get their groceries since the start
of the pandemic.
Loyalty programs
- 43 percent of consumers say they spend more money at grocery
stores that have loyalty programs.
- 39 percent say loyalty programs encourage them to buy items at
their favorite store that they would otherwise buy online.
Methodology
What Consumers Expect From Their Grocery Shopping Experiences
Report, a PYMNTS and ACI Worldwide collaboration, is based on a
census-balanced survey of 2,342 U.S. consumers conducted from June
9 to June 13, 2021. The report examines how grocery stores can
boost their value among consumers and tracks how consumers are
employing digital channels to enhance or replace trips to
brick-and-mortar supermarkets.
About ACI Worldwide
ACI Worldwide is a global software company that provides
mission-critical real-time payment solutions to corporations.
Customers use our proven, scalable and secure solutions to process
and manage digital payments, enable omni-commerce payments, present
and process bill payments, and manage fraud and risk. We combine
our global footprint with local presence to drive the real-time
digital transformation of payments and commerce.
© Copyright ACI Worldwide, Inc. 2021 ACI, ACI Worldwide, ACI
Payments, Inc., ACI Pay, Speedpay and all ACI product/solution
names are trademarks or registered trademarks of ACI Worldwide,
Inc., or one of its subsidiaries, in the United States, other
countries or both. Other parties’ trademarks referenced are the
property of their respective owners.
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Dan Ring dan.ring@aciworldwide.com Nidhi Alberti
Nidhi.alberti@aciworldwide.com
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