Digital innovation is redefining customers expectations. And when it comes to preferred payment methods, it is clear that more is more. And as quick as cash is becoming obsolete, digital payment methods are taking its place and revolutionizing what it means to pay. As a merchant, it is critical to understand your customers’ expectations and implement a business management platform that future-proofs your business to handle all types of transactions.
Here are the latest trends and innovations in the payment industry:
1. Chip-Based Cards
2016 was a sluggish year for adoption, but a Business Insider study forecasts that US EMV (the technology behind chip cards) adoption and usage will grow significantly in 2017. And consumers are warming up to chip-technology, a study by NerdWallet shows that more than three-quarters of Americans using the chip feature in an EMV card with 4 in 5 Americans viewing chip cards positively.
While there is a knowledge gap about the added benefits of chip-technology, and when to use them, chip-technology is the preferred in-person payment option. NerdWallet reports that 43% of respondents prefer to use chip cards when making purchases at a physical retail location. By contrast, 29% prefer traditional magstripe cards.
2. Mobile Wallet
Global mobile wallet spend is expected to rise nearly 32 percent this year to $1.35 trillion, according to a new Juniper Research study. With consumer industry titans like Apple, Android, and Samsung leading the charge in mobile wallets, industry experts expect to see a quick adoption of Mobile Wallets and NFC technology. In fact, Apple Pay alone reports a growth of one million new users per week.
3. Credit Cards
In a TSYS Consumer Payment Study, the company determined that credit cards were the most preferred payment, replacing debit cards. The study broke it down by credit, debit, and cash, finding that 40 percent selected credit, while 35 percent selected debit and 11 percent selected cash. While credit reigns kings, debit is still the preferred payment for low-dollar transactions and everyday spend. Conversely, credit is used primarily for higher-dollar transactions.
4. Payment Options
Arguably, the most important trend to get behind is consumer’s demand for multiple payment options. Shoppers are canceling their online orders if their preferred payment gateway isn’t available and abandoning cash-only shops. Also, consumers are becoming more savvy with their payment choices, from mobile wallets to differentiating between debit and credit cards, shoppers seamlessly switch between different options.
50% of regular shoppers would cancel their purchases if their preferred payment method was not available. Merchants that offer too few payment methods are losing valuable business, and turning customers away at the point of sale. Be the payment flexible business your customer demand with Revel.