PYMNTS Intelligence: Why Cashierless Checkout Is Retail’s Next Normal

As in-store shopping has resumed at full tilt following pandemic closures, it is clear that retail will never be the same. After two years of integrating eCommerce into their purchasing habits, shoppers are seeking new checkout experiences that offer the same benefits of speed and convenience as their digital shopping journeys.

Consumers in a 2022 study cited self-checkout as their most used technology for improving the physical shopping experience. Despite any momentary challenges, consumer data increasingly supports an ongoing and strong evolution toward cashierless checkout.

Self-Checkout Among Top Five Consumer Payment Demands

A December PYMNTS report revealed that self-service kiosks for speedy checkout have joined the ranks of mobile apps, QR codes, digital rewards and alternative payment methods as the top five shopping features that merchants perceive their customers want from stores. The research found that 51% of customers expect self-service kiosks when they shop.

Retailers view providing these conveniences as vital to customer loyalty, with 70% of executives saying such features can determine consumers’ preferred retailers. The research further found that more than 66% of retailers are shifting resources toward more convenient payment and checkout options.

Scan-and-Go Systems Are Key Draw for Consumers

One of the most promising new cashierless checkout tools is scan-and-go technology, which allows customers to scan and pay for items on their smartphones and walk directly out of stores without stopping at a checkout. A January study found that 77% of shoppers are more willing to patronize a retailer if scan-and-go is available, largely because they prioritize shopping speed above all other factors. Scan-and-go saw its biggest boost amid the pandemic, with 76% of users first leveraging this system to facilitate social distancing.

Scan-and-go is a natural fit for many shoppers, thanks to the prevalence of smartphones. Seventy-nine percent of consumers shop with phones in hand, 40% using the devices to compare prices, 25% to compare brands and 22% to read or write shopping lists. Scan-and-go also offers stores data that a self-checkout cannot: for example, how long consumers spend inside the store or what route they take to pick up all their different items. Retailers can harness this data to change the layouts of their stores for a smoother shopping experience.