Month: October 2020

When it comes to the automotive industry, the worldwide coronavirus (COVID-19) has changed it in a way that consumers are turning to digital channels while shopping for vehicles. Additionally, the need to mitigate the spread of COVID-19 through social distancing measures has created a shift away from visiting local dealerships themselves.

As for individuals who have not owned a vehicle for transportation purposes in the past, they have been looking at SUVs, cars, and trucks online in order to curb the reliance on ride-sharing and public transportation services.

According to a report by CNBC, there has been a significant demand for used vehicles as well. Pickup trucks have been the most sought-after, while some individuals have travelled hundreds of miles to get a specific vehicle regardless of cost. 

The report referred to Chuck Schmidt as an example, as he was willing to travel across five states in order to purchase a 2017 Chevrolet Silverado 1500. 

“I saw the truck on the internet Thursday morning and called the dealership,” Schmidt told CNBC. “It was exactly what I was looking for and I bought it Friday afternoon.” 

He added that he paid $22,000 for the vehicle at the Toyota in Lee’s Summit located in  Kansas City, Missouri. Schmidt travelled all the way from Spokane, Washington. 

According to the report, there are two factors in such a trend tied to the COVID-19 pandemic. Firstly, when automakers shut down their plants from both Canada and Mexico, the supply of new vehicle models became restricted. 

Secondly, as North America emerged from the initial surge of the COVID-19 situation, individuals who did not have a vehicle before decided that it was time to purchase one. This would allow them to get from place to place without having to rely on transportation services that involved encounters with large groups of people. 

“In the space of two months, prices went from double-digit declines to double-digit gains, and have stayed high since June,” Tom Kontos, an economist at KAR Global Analytics Research, noted. 

KAR Global Analytics Research also found that the average cost reached an all-time high at $21,557 when it came to  full-size pickup vehicles. Compared to February, that accounted for a 31.5% increase. 

As the worldwide pandemic continues to change the needs and shopping habits of consumers, it is imperative that merchants are up-to-date with the latest trends. This may encompass new technologies offered by payment processing solutions that help make transactions go more smoothly.

PayFrame is here to help businesses in this regard. To receive more information, contact a professional at either 1-888-668-0733 or info@payframe.com.

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The coronavirus (COVID-19) pandemic has changed the way consumers make purchasing decisions. Additionally, it has increased the need for companies to innovate their businesses in such a way that they incorporate technology to suit customer needs. 

According to a recently published report by PYMNTS, it was found that about twice as many consumers went shopping for retail products from the comfort of their homes during the summer of 2020 than 2019. Meanwhile, approximately three times as many people shopped for groceries from home during the summer of 2020 over the previous summer. 

The report, which was completed in collaboration with Visa, noted how it was eye-opening that about 23 million consumers also bought items via voice assistant technology. For instance, such technology included Google Home and Alexa. According to the findings, this accounted for an increase of 42% in terms of the share of consumers purchasing items since 2018, which was a 10% increase since 2019. 

The advent of the COVID-19 pandemic has only helped with the move towards the digital realm, the report added. Homes, for example, have become digital centres when it comes to contactless and voice-driven living. Both work-from-home measures and lockdowns have contributed to this change, since individuals have been completing their daily activities through digital means.

In fact, PYMNTS found that 73% of consumers said they ate lunch at home. This accounted for a 30% increase compared to the previous year. In addition, in terms of retail purchases that consumers have made from home, that amount has doubled over the last 12 months. Meanwhile, grocery shopping from the comfort of one’s home has tripled, which accounted for  more than 42 million U.S. individuals.

As for the users of using voice assistants to make purchases, they pertained to tech-savvy bridge millennials who had more disposable income. This particular generation of consumers are comfortable with using technology to make payments because they grew up with connected devices, according to the report. 

As the world of technology continues to influence the way different cohorts conduct their shopping activities, it is imperative that merchants stay up-to-date with the latest payment processing methods. PayFrame is here to bridge the gap between the impact of COVID-19 and businesses based on ever-changing consumer habits.

For more information and to receive the best payment processing rates, contact a professional at PayFrame today at either 1-888-668-0733 or info@payframe.com.

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What is the current state of cryptocurrency as a viable payment option? 

Recently, a fintech platform known as Ternio announced that it has joined up with Visa’s Fast Track program. Ternio will be an enablement partner with a focus on cryptocurrency. 

By joining Visa’s Fast Track program, Ternio would be able to more easily leverage the latter party’s payments network on a global scale. Additionally, payment options involving cryptocurrency will be introduced to users.They will be able to seamlessly interact with cryptocurrencies via linked bank accounts and debit cards, according to the press release. 

Terry Angelos, the global head of fintech at Visa, said that the company is excited to partner up with Ternio, as the new relationship can provide support to fintechs of different sizes. These companies can then easily gain more reach and security thanks to Visa’s established network. 

 “Ternio’s focus and expertise in the crypto ecosystem will help Fast Track companies focused on digital currencies to quickly and easily access Visa’s platform and its scale,”  Angelos said. “We have strategically evolved both our platforms and how we work with partners and customers to encourage a broadening fintech ecosystem.”

He added how Visa’s work with Ternio is a stepping stone and the company looks forward to supporting them.

Daniel Gouldman, the chief executive officer and co-founder of Ternio, also expressed his excitement about the new partnership. According to Gouldman, his company is a leader in white-label technology when it comes to the cryptocurrency space. 

By working together with Visa, Ternio would be able to further deepen the connection between legacy financial systems and blockchain technology. Now part of the Fast Track program, Ternio would be able to further scale its existing card programs with Visa. The gap between cryptocurrencies and traditional fintech would be further bridged as well, which would help Ternio create better products for their customers. 

According to the announcement, approximately over 61 million merchants worldwide accept Visa payments, which means that Ternio’s Blockcard can be used globally. Blockcard is a virtual debit card and platform that allows users to make purchases via cryptocurrency. 

Currently, the official Blockcard website states that their account holders may earn “6.38% crypto back rewards on merchant purchases.” This is in addition to receiving a free checking account for purchasing cryptocurrency in USD. 

As the world of cryptocurrency continues to have an effect on consumer behaviours, it is imperative that merchants keep up with the latest trends and payment processing options. By working with PayFrame, business owners can discover tangible opportunities and improve their profit margins. 
To get in contact with a PayFrame expert today, call 1-888-668-0733 or email info@payframe.com.

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What is the current state of retailers amid the worldwide coronavirus (COVID-19) pandemic?    

When it comes to activewear and athletic footwear, it has been a roller coaster in the 2020 market, according to the NPD Group. While sales of the latter items were up in low single digits in both January and February combined, the pandemic plummeted the sales by approximately 40% in March. By April, sales decreased about 50%. 

The market then experienced a bit of recovery in May. By June, it increased by approximately 25% thanks to the addition of limited edition releases. According to Matt Powell, the vice president and senior industry advisor at the NPD Group, although June was looking up, it was not enough to offset the weak results of the previous months. When combined, athletic footwear sales in the first half of 2020 declined in comparison to 2019 across different markets. 

“I believe the sales trend will be weak for the balance of the year,” Powell said.  

In order to face the challenge of low sales while maintaining and growing the customer base, retailers have opted for strategies that relied on digital initiatives. Fleet Feet, a shoe chain in the United States, is an example of such a company. There are 181 Fleet Feet stores within 37 states, and the company traditionally put an emphasis on in-store experiences when it came to customer satisfaction. 

While the advent of COVID-19 resulted in the closing of brick-and-mortar stores, online business for Fleet Feet saw significant growth. As a response to the changing consumer behaviour and the pandemic itself, the company began to offer a digital fitting service for its customers. 

According to Matt Werder, the director of retail experience at Fleet Feet, the pandemic made a positive impact on those who wanted to work out via either running or walking. “As a result, the demand for our services and products remained very high, even while almost all of our stores were closed for a period of time, Werder said in an interview with PYMNTS.

Recently, Fleet Feet also announced an innovation to its own fit id technology. Using 3D scanning technology, fit id takes accurate measurements of one’s feet. These measurements pertain to width, length, and even arch height. Afterwards, a customer receives personalized insole and shoe recommendations based on the scan’s findings. 

“Outfitters can then assess your unique stride and step using Dynamic Pressure Mapping,” the official fit id website explained. “The pressure plate records your foot’s path of motion and weight distribution as you walk to show you exactly how you move. The pressure data provides even greater insight into finding the right shoes for you.”

In terms of other ways the company is using a digital-first approach amid the pandemic, it is using emails as a means of effective communication. According to Werder, the company uses emails as its primary method of providing customers with information about new products, sales, events, and training programs. He noted that the Fleet Feet is unique in its approach to email marketing by virtue of creating content on a national level that is then supplemented with local content. 

“This allows every customer to receive the most relevant information, keeping them informed on everything specific to where they live. Beyond email, we also have a strong presence and following on social media, with both national and local pages on all the major platforms,” he told PYMNTS.

Additionally, Werder noted that the increasing popularity of no-contact payment methods would become highly sought after by retailers as consumer behaviours continue to change. 

In order to run a successful business, it is imperative that merchants are up-to-date with the latest consumer trends and technological innovations. The move towards digital initiatives allows shoppers to make purchases in a safer manner while not sacrificing the quality of the customer experience and checkout process. 

PayFrame is here to support business owners with the latest payment processing solutions. As a global leader in brokering merchant accounts and the ultimate resource for payment card acceptance, PayFrame is ready to work with clients in order to achieve higher profit margins and take their businesses to the next level. 
To get started, contact a PayFrame professional today at either 1-888-668-0733 or info@payframe.com.

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