More retailers are expanding their payment strategies to include in-store cash payment for online purchasers, acknowledging the fact there are millions of United States consumers who lack a credit or debit card or would rather avoid paying with plastic online. Kmart is the most recent national brand to offer this service, following Wal-Mart and Toys r Us.
A survey done by Compete showed Wal-Mart consumers tended to use the service more for budgeting purposes as opposed to not having access to a payment card. But Kmart’s strategy is to specifically target the financially underserved consumer:
From Fast Company:
Kmart executives are blunt in public statements about this program being aimed directly at low-income customers. “With Pay in Store, we offer our members more choices and provide access to online shopping for a large, underserved portion of the U.S. population that wants the convenience of shopping online but does not have a credit card or is reluctant to submit their card information via the Internet,” Kmart executive vice president Imran Jooma said in a statement.
These strategies are incremental at best and show just how challenging the U.S. retail market has become for many big-name companies. Navigating the dynamics of online-offline shopping means solving for ever-more specific consumer behavior, which does not necessarily create an advantage for electronic payment forms.
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