Consumers are warming up to contactless forms of payments, according to new numbers from The Strawhecker Group and the Electronic Transactions Association.
The recent survey of nearly 1,000 U.S. consumers finds 61 percent of those polled who have tried contactless payments reported a positive impression and plan to continue usage in the future. Many consumers have also tried emerging payment methods like buy online pick-up in-store and curbside pick-up (27 percent), digital wallets (25 percent), and delivery services for gifts (27 percent).
However, there is still a significant gap in understanding of certain contactless payment options as 65 percent of consumers have never tried digital ‘Buy Now, Pay Later’ options.
“Some expressed an interest in trying BNPL, but were concerned about security, overspending, and figuring out it works,” the groups said in a summary of the findings. Financial institutions may be sharing that concern as, according to a recent Reuters report, major credit card issuer Capital One will no longer allow its cardholders to make BNPL purchases with Capital One cards.
The report shows overall that consumers are utilizing different types of payments options as they attempt to shop safely this holiday season. For online purchases, traditional credit/debit cards were cited as consumer's number one choice, followed by 1-click payment options, and digital wallets.
"As we're all aware, the Covid-19 pandemic has changed the way most consumers work and live," stated Jodie Kelley, CEO of ETA. "Fear of exposure to the virus has led businesses to expand their digital offerings and consumers to rely increasingly on digital, mobile, and online channels to securely conduct day-to-day activities."
According to survey results, 81 percent of consumers have used 1-click payment methods, with 37 percent stating they use these services frequently. The service allows consumers to sign-up once to access their saved cards and then pay securely for purchases across retailers with one click.
"The Covid outbreak reinforced the already growing trend of online shopping and the general shift from physical to digital payments," said Mike Strawhecker, President of TSG. "It has encouraged experimentation, coaxing consumers to explore different ways to access products and services and accelerating certain behaviors."
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