All the Digital Payment Methods Available Through FEVO, Explained
FEVO offers payment via many digital wallets

All the Digital Payment Methods Available Through FEVO, Explained

April 1, 2024

Let’s begin with a little refresher on the state of online shopping, and how we got here.

E-commerce was invented … inevitably. Once the world wide web existed and people had the ability to interact with one another instantaneously and over great distances, it was only a matter of time before they would begin to buy and sell things.

It was strange at first, as most novel things are: “You just want me to give this random stranger my credit card information?”

But with time came progress. Security protocols were established. Trust grew. People got more comfortable with spending huge swaths of their time on the internet, and they got more comfortable with making purchases, too. These days 76% of US adults shop online, with 25% doing it at least once a month.

Internet browsing — and shopping — habits have changed since the early days of the internet, though. Every one of us now has a powerful computer in our pocket, and we use them constantly. According to SEMRush, a search engine marketing firm, there were 313% more visits on mobile compared to desktop in 2023. According to the same study, mobile users also tend to be less engaged than their desktop counterparts. Given those facts, it’s vital to make the mobile checkout experience as frictionless as possible. 

How Digital Wallets Became Essential

According to Nerd Wallet, a digital wallet “stores your payment options, such as credit and debit cards, allowing you to conveniently use your smartphone or smartwatch to make a purchase.” Apple Pay, Google Pay, Samsung Pay are all digital wallets readily available depending on what type of mobile device you own. Paypal, the robust online payment system that connects to users’ email addresses, is perhaps the proto-digital wallet, and available via any device. Venmo is a more recent example that began as a peer-to-peer payments app but now acts as a digital wallet for shoppers as well.

Why do people use these tools instead of their regular credit cards? Because it’s faster and more convenient, especially on mobile. A digital wallet allows users to complete a purchase in just a few clicks, which is perfectly suited to the spontaneous nature of mobile purchasing writ large. On top of that, it is a very safe payment method which uses a process called tokenization to decrease theft. 

According to this report from Capital One, North America is the fastest-growing market for digital payments; by 2026, they will account for 41% of all online purchases. FEVO, meanwhile, has seen 62% of purchases via mobile YTD. In order to optimize your online storefronts for this reality, we aim to offer consumers as many payment options as possible, so they can pick the method that’s most convenient for them. 

The New Kid on the Block: Buy Now, Pay Later

Speaking of giving shoppers every possible payment option: FEVO recently integrated two Buy Now, Pay Later (BNPL) options into our checkout. The process is exactly what it sounds like: BNPL allows shoppers to purchase a product with a down payment (usually 25%) and then pay the rest of the balance out interest free over a set schedule. This means shoppers who were on the fence because of price (or other reasons) may be more likely to convert. A study from RBC Capital Markets estimates that “point-of-sale loans increase retail conversion rates 20% to 30%, and lift the average ticket size between 30% and 50%.” 

Naturally, you might have some concerns or questions regarding exactly how this works. Here are some we hear most often…

If the shopper defaults on their loan, what happens?

For you, nothing. As the party making the sale, your settlements will continue as normal. The shopper enters a contract with the BNPL company, who assumes the liability. They typically charge late fees or interest for missed payments. 

Will this only attract very young people?

Not really. The average age of BNPL users on the FEVO platform YTD is 38.5, with the largest distribution of customers falling in the 35-44 age bracket.

Does the fact that shoppers use BNPL mean they don’t have disposable income?

We have not found this to be true. A YTD analysis of BNPL on FEVO transactions shows an Average Order Value of over $160. 

How does this help bring in new fans?

By giving you a new payment option, BNPL unlocks a new subset of shoppers who may now have the ability to purchase tickets to an event they otherwise would have skipped. More than 35% of BNPL purchases YTD on FEVO were new to the brand. 

If you have any questions about digital wallets or BNPL, please feel free to reach out to your Partner Success manager, who can explain how all available payment options on the FEVO platform can help you streamline the ticket-buying process and amplify your fanbase!

All the Digital Payment Methods Available Through FEVO, Explained