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 even to us. We recently surveyed 1,000 customers and small businesses to identify key shopping trends impacting how consumers shop and how businesses are managing their payments needs; some of our findings were very different from what we expected.
Here are the top three industry trends that you might not have seen coming.
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 U.S. shoppers, cash is still the most preferred method of payment. Eighty-nine percent of our consumer respondents still carry cash as their preferred method of payment, with debit and credit cards coming behind cash as preferred methods. Consumers are open to other forms of payments, but the more traditional methods still dominate.
Unsure if it’s secure
Despite the many strides the industry has taken to arm itself against fraud and data breaches, 78% 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.
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% of consumer respondents feel more comfortable paying with Facebook than the other social media channels.