The news: Hollister introduced Share2Pay, a payment solution that lets customers send their shopping carts to other people via SMS text, per the Wall Street Journal.
Share2Pay lets teen shoppers—the retail brand’s target market—send their shopping carts to their parents to complete their orders. It’s available on the Hollister app in the US and UK.
How we got here: Hollister launched Share2Pay to address cart abandonment, which contributed to a 7% year-over-year sales loss for parent company Abercrombie & Fitch in Q2.
Why it matters: Cart abandonment translates to lower sales volume and lower revenues for merchants, making it a major issue.
Like Hollister, many fintechs have introduced solutions to tackle cart abandonment: Sezzle targets shoppers who are ready to abandon their carts with messages offering its installment options. And Revolut recently launched one-click checkout to streamline the payment process.
The Share2Pay opportunity: The solution can help Hollister increase conversion rates, which will be important as the holiday season kicks off. US retail ecommerce holiday sales are expected to hit $239.26 billion, per eMarketer forecasts from Insider Intelligence.
If the solution proves successful for Hollister, Abercrombie & Fitch will likely roll it out to its other brands, which should help lift overall sales volume. Down the road, Hollister could license Share2Pay to other retailers, opening a new revenue stream for the company. Payment providers may also replicate Share2Pay to better serve their customers.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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