AUSTIN, Texas--(BUSINESS WIRE)--Vyze, a leader in cloud-based financial technology solutions for retailers, today released the results of a new survey of more than 1,000 American consumers on what matters most to them when it comes to retail credit. Unsurprisingly, the survey finds that 9 out of 10 Americans (89.4%) have been asked to apply for credit in the store. But only 6 out of 10 (61.2%) have actually applied there – and only 1 in 4 (24.3%) have applied online.
Other than simply not wanting to finance a purchase, the key factors stopping shoppers from applying for credit in the store include: not wanting to provide financial information to a store associate (26.9%); a long application process (15.0%); and fear of being declined (10.4%). Security concerns are even more acute online, where the #1 issue stopping credit applications is sharing financial information (41.8%).
Notably, competitive interest rates are far less important than other experiential factors when deciding to apply for credit. Store shoppers care more about a rewards offer or incentives (59.7%); a simple application (51.2%); and fast credit approval (40.2%) than competitive interest rates (29.9%). When applying online, consumers prioritize a simple application (47.7%) over anything else, including competitive interest rates (32.1%).
Additional survey findings include:
Shoppers want multiple credit options: 8 out of 10 Americans (82.3%) would consider using credit to purchase items they want and need. And, when it comes time to buy, nearly 4 in 10 shoppers (36.8%) think it is valuable to be offered more than one credit option. Unsurprisingly, the familiar store card is the most popular with consumers (57.4%). However, other types of credit cards (27.5%); layaway plans (22.9%); and loans with set monthly payments (21.4%) are also attractive options.
Banks still rule retail credit – for now: Americans trust banks the most to be the source of the best retail credit offer (40.8%) but the gap is closing. Younger Millennial shoppers (ages 18 – 29) are almost equally likely to trust Amazon (31.8%) as the traditional banks (33.7%).
“Retailers have invested tremendous energy and resources into extending credit offers to shoppers, but there is a significant gap when it comes to consumer response,” said Keith Nealon, CEO of Vyze. “This survey shows that there is great opportunity to stand out and differentiate based on providing multiple financing choices, clear security messaging and the experience itself – in both the store and online channels.”
This survey of more than 1,000 U.S. consumers was conducted online in March 2016. Participants include adults over the age of 18 across the United States.
Vyze is a leading cloud-based financial technology company for businesses. By combining technology, a comprehensive lending supply, and support under one roof, Vyze is able to deliver businesses more satisfying financing experiences for their customers, wherever and whenever they shop.