Just as much as consumers want the easiest shopping experience and getting their goods quickly, they want their money back fast for returns. By giving consumers their refunds quicker, they’re able to shop again sooner – and any retailer wants to ensure this money is re-spent with them.
The refund process has a stronger impact on how consumers feel about a brand than many merchants realise. It affects not only their initial decision to shop with that brand, but also their long-term loyalty. According to a 2018 report by European payments provider Trustly, nearly two- thirds of shoppers said the speed and ease of refunds affect where they choose to shop, while 95% said same-day refunds would make them more loyal to a merchant.
In the Deloitte Future of Payments report from September 2019, it mentions that cash usage in the country increased by 6-10% per annum ahead of inflation. This may be because some retailers tend to refund in cash in-store, instead of doing card or EFT reversals. In an article published by Mastercard, it is mentioned that, this contributes to a cash-dependent economy which costs the South African consumer R23bn per year.
Today, offering only card payments is simply not good enough. You’ve got to be able to process every transaction quickly, reliably and securely. If you want to drive growth, you’ve got to offer consumers digital payment solutions that are secure, do not require credit cards or customer registration and are available even in the face of the heaviest traffic volumes.
In 2018, many major payment platforms in South Africa buckled under the transaction volumes and went offline even before stores officially opened for business, causing thousands of lost sales. People could browse online stores but could not checkout and pay for their orders. In the end, several retailers and e-tailers, like Takealot and Loot, encouraged consumers to use alternative digital payment platforms to complete their purchases.
This year, transaction volumes on Black Friday and Cyber Monday are expected to be a staggering 1950%1 higher than an ordinary shopping day as bargain-crazed consumers descend on online stores. Having a shortened refund time can, therefore, have a direct impact on sales and profits, as it enables customers to spend more, and shop more frequently.
