GoDaddy has encouraged small businesses to make greater use of tap to pay technology due to increasing use of the method by younger consumers.
The web hosting platform conducted a survey last month of US consumers, finding a ‘disparity’ between retailers and millenial/Gen Z consumers regarding payment methods.
Survey data suggests that over half of Gen Z and 31% of millennial spenders favoured tap to pay as a method of payment when using debit or credit cards.
These demographics are apparently the ‘top target audiences’ for small businesses, but GoDaddy suggests that the current payments practices of small businesses are geared more towards older generations.
“It’s crucial small businesses adopt contactless payment methods to stay competitive,” GoDaddy – which upped its own game in tap to pay payments by integrating Apple Tap to Pay in April last year – commented on the data.
If the platform’s data is to be believed, small businesses can benefit a great deal from updating their payments offerings to meet demands of younger customers.
Data suggests that 73% of Gen Z and 75% of millennials would shop more at small businesses ‘if they offered the same convenience as larger chain stores’.
This extends not just to retail but also to online purchases. For example, two out of five small businesses do not offer free shipping, but 90% of survey respondents highlighted this as an important factor affecting their decision making.
A further 55% of Gen Z and 61% of millennials said making purchases directly from a business website was important, but 28% of small businesses lack an online store.
Supporting small businesses has become an area of interest for GoDaddy over the past year, entering into a partnership with PazeSM to help upgrade the checkout experience for such firms.
