What to look out for next year and how to prepare your business.
The payments industry is an ever-changing environment, so we are constantly talking to businesses and shoppers to stay on top of the latest trends. However, some changes in shopping habits and customer preferences come as a surprise to even us. We recently surveyed 1000 customers and small businesses to identify key trends impacting how consumers shop and how businesses are managing their payments needs, and some of our findings were very different from what was expected.
Here are the top three industry trends that you probably didn’t see coming.
1.Cash is still king
It seems like every other quarter there’s a new payment method changing the way shoppers prefer to pay. While contactless and mobile payments are trending upward among US shoppers, cash is still the most preferred method of payment. 89 percent of our consumer respondents still carry cash as their preferred method of payment, with debit and credit cards following respectively. Consumers are open to other forms of payments, but the more traditional methods are still predominant.
2. Unsure if it’s secure
Despite the many strides the industry has taken to arm itself against fraud and data breaches, 78 percent of consumers still have security concerns when paying online, and 89% feel more could be done to protect their data. Preference of payment is clearly linked to perceptions of security – traditional payment methods (debit/credit and cash) are perceived as more secure and thus used more widely.
3. Not so social
As much as we live in a social media society, consumers have surprisingly not adapted to payments via social channels. Both businesses and consumers see payments via social media as seemingly not secure, though 37 percent of consumer respondents feel more comfortable paying with Facebook than the other social media channels.