Ecommerce is built for solo shoppers, but what if checkout could work for groups? That’s exactly what Cam Richardson, founder of PaySquad, is making possible. Since launching on Shopify and WooCommerce, PaySquad has been flipping the script on payments—helping retailers turn one sale into ten potential future customers. With an average order value of over $850 and a 95% success rate on group purchases, the company is proving that squad buying is changing the way young people shop and proving a powerful growth strategy for retailers.
In this episode of Add to Cart, Cam shares why younger shoppers are avoiding credit cards, how retailers can tap into built-in customer acquisition, and why merchants should be rethinking how they sell big-ticket items.
Group Payments = Built-In Customer Acquisition
For years, ecommerce has focused on one thing: getting one person through checkout. But PaySquad flips that model on its head. Instead of just one shopper completing a purchase, group payments allow multiple contributors to pool funds and complete a sale together. And the kicker? Each of those contributors is now a potential future customer.
One sale, 10 new customers. It’s turning your checkout into a customer acquisition channel.
This changes how retailers should be thinking about checkout. Instead of treating it as a transaction, smart brands are using it as a customer acquisition tool. PaySquad has already seen brands capitalising on this by offering exclusive discounts and personalised follow-ups to turn contributors into future buyers.
The opportunity goes beyond just gifting. While group purchases are popular for birthdays and baby showers, Cam has seen squads come together for all sorts of reasons. From colleagues chipping in for office equipment, sports teams pooling funds for new gear, and even shoppers teaming up to unlock free shipping.
“We’re seeing squads from multiple countries even contributing to one, which is solving so many problems for international friend groups and family groups and colleagues as well.”
Younger Shoppers Are Allergic to Credit Cards
Another shift happening at checkout? Gen Z and younger Millennials are avoiding credit cards entirely. They don’t want to deal with debt, and they definitely don’t want to be the one covering the cost upfront and chasing mates for money later.
Cam has seen firsthand how younger shoppers gravitate toward BNPL, digital wallets and group payment solutions. Yet, many retailers still assume their customers will simply pull out a Visa or Mastercard.
Young people, they’re kind of credit card allergic, right? That’s why BNPL is so popular now…If your checkout experience still assumes every shopper is using a credit card, you’re already behind.
Beyond payment preferences, trust is a massive factor. Younger shoppers hate the awkwardness of chasing friends for money after covering a group cost. PaySquad eliminates that issue by automating the group payment process and making contributions transparent. Instead of one person fronting the entire cost, each contributor pays their share before the order is placed, ensuring no one is left out of pocket.
“When the contributions hit 100%, that item is automatically purchased. There’s no need to double handle the funds or have them in your account and then head back into the store or anything. No need to chase anyone. It’s just complete.”
How Retailers Can Get Creative with PaySquad
The best PaySquad merchants aren’t just enabling group payments—they’re reimagining how they sell. Cam has seen retailers experiment with group-buy incentives like unlocking bigger discounts, bundling premium products, or even creating stretch goals for squad purchases.
“We’re seeing squads pull together thousands of dollars to buy products that wouldn’t normally be in their budget. The best retailers are leaning into that by offering bundles that make group buying even more attractive.”
But the psychology behind group buying is just as powerful as the financial benefits. Cam shares the story of one PaySquad that formed to buy a sewing machine for a friend’s birthday. Within 40 minutes, the squad hit its target, leaving 10 people who wanted to contribute out of luck.
“Now these 10 other people [are] going, ‘Oh no, we’ve missed the boat here. We’re not gonna be on the card. This is terrible.’ [So] they went and started their own PaySquad as well and then got an overlocker for her as well.”
One group purchase instantly triggered another, all because of a little bit of FOMO and social pressure. For retailers, this opens the door for:
- Limited-time PaySquads to drive urgency
- Exclusive squad discounts to encourage larger purchases
- Bundles designed specifically for group buying
For smaller retailers looking to compete with the big players, squad buying offers a way to drive higher-value purchases without relying on discounts.
Merchants who think creatively about group buying aren’t just increasing sales. They’re unlocking a whole new way to engage customers and build loyalty.
Why Selling to Squads Could Be Your Next Big Growth Play
Shopping habits are shifting fast. Younger consumers aren’t just ditching credit cards—they’re looking for smarter, more social ways to buy. PaySquad is tapping into this shift, proving that the checkout is a powerful customer acquisition tool.
For retailers, the message is clear: stop selling to individuals and start selling to squads. Whether it’s increasing AOV, reaching new customers, or making gifting easier, group payments are an untapped goldmine.
Want to give Paysquad a go? They’re offering sharp pricing and $1000 in co-marketing spend for ATC listeners. Visit https://www.paysquad.co/business fill out your deets and use code: X.
