Vyze reveals US consumer preferences regarding retail credit online, in-store

April 2017
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Vyze, a cloud-based financial technology solutions for retailers, has released the results of a survey of more than 1,000 US consumers on what matters most to them when it comes to retail credit.

According to the survey, 89.4% of respondents have been asked to apply for credit in the store. But only 61.2% have applied there – and only 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%); and fear of being declined (10.4%). Regarding online security, the most important issue stopping credit applications is sharing financial information (41.8%).

Competitive interest rates are 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 prioritise a simple application (47.7%) over anything else, including competitive interest rates (32.1%).

According to the same survey, shoppers want multiple credit options: 82.3% would consider using credit to purchase items they want and need. And, when it comes time to buy, nearly 36.8% think it is valuable to be offered more than one credit option. 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.

The US consumers 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%).