Transformation of Digital Payments for the Beauty Services Industry Continues

Despite being among the worst hit by the pandemic, the beauty services market has begun to rebound. Sales in the United States have reached nearly 70% of their pre-pandemic levels in 2021, and the market value has eclipsed $57 billion. Nevertheless, emerging shifts are creating new challenges and opportunities for the industry.

According to PYMNTS, technological innovations are playing a powerful role and are beginning to blur the line between service and product offerings. Retailers are experimenting with in-store offerings using augmented and virtual reality, while salons and spas are finding new revenue streams through software that allows them to expand services into digital product offerings and eCommerce.

The «B2B and Digital Payments Tracker» examines how the beauty and wellness service industry is rebounding from the pandemic with the help of digital initiatives.

Avere Beauty, based in Pittsburgh, has launched a «treat now, pay later» option to make its services more affordable. Eligible customers can use a state ID and mobile phone number to choose from a variety of monthly payment plans. This option covers med-spa services, laser treatment, and other services from Avere Beauty.

Sally Beauty, a retailer, is utilizing technology to create «memorable and personalized» interactions at Studio by Sally, a do-it-yourself-centric concept store. The store focuses on digital-first experiences, including virtual check-ins, digital education, streaming demos, and take-home videos. Sales associates, who are trained cosmetologists, provide customers with salon-style consultations to help them achieve professional results at home using the store’s products.

To explore more stories and trends in the beauty and wellness industry, visit the Tracker’s News and Trends section.

Digital systems can greatly improve customer experience and help attract and retain customers as salons and spas recover from pandemic closures. Jason Foodman, the president and CEO of Rosy Salon Software, shared insights on how digital platforms can address the industry’s pain points and enhance the customer experience.

The convergence of beauty services and products has put a spotlight on partnerships. The closures of in-person businesses during the pandemic forced beauty services providers to undergo a digital transformation, allowing many to survive. With increasing consumer demand for convenient and contactless payment options, the industry is finding value in digital transformation. Online booking has become a necessity, with 70% of salon customers preferring to book appointments online rather than calling in. Additionally, partnerships with product brands can offer lucrative revenue streams through eCommerce by leveraging the blurring boundaries between products and services.

For more information about digital innovation in beauty and wellness services, readers can refer to the PYMNTS Intelligence provided by the Tracker.