Our latest payment news roundup covers shifts in consumer preferences when it comes to digital payments, how point-of-sale upgrades will drive payments growth, and how businesses need to implement a multi-pronged approach to B2B payments digitization.
PYMNTS Pandenomics Study: Many Shifters Prefer Digital Living To The Physical World
A new study from PYMNTS.com shows that digital habits acquired during the pandemic are likely here to stay. Sixty percent of consumers who have increased their digital activity for various tasks such as grocery or retail shopping say saving time is the number one reason they want to continue digital habits for one activity. That percentage increased to 72% for those who wanted to continue digital habits for two or more activities.
The study also broke down the demographics of those who are most likely to use digital shopping aggregators - tools that allow them to shop or order from more than one store or restaurant at a time.
- Millennials (81%)
- Generation Z (80%)
- Consumers who earn more than $100,000 annually (58%)
Point of sale tech upgrades to drive payments to $17.3 trillion by 2026, research says
As the pandemic reduced cash usage and drove contactless payments, many vendors saw the need to rework their payment options in order to embrace the ways customers want to pay. In some cases, this involved upgrading their point-of-sale (POS) technology. POS systems now need to support a multitude of payment methods such as QR codes and mobile payments, as well as additional business-management capabilities such as inventory management and business analytics.
PaymentsDive notes new statistics from Juniper Research that project that “the total value of transactions processed by POS terminals will exceed $17.3 trillion globally in 2026 compared to $14.8 trillion in 2021, a 28% growth forecast.”
QR Codes And Digital Wallets Are Gaining Popularity Fast Among Consumers
With the recent growth in contactless payment methods, Digital Transactions took a deeper look into which types of touchless payments have caught on. Citing a survey conducted across nine countries, they noted the following findings:
QR Codes
- 18% of survey respondents said they used a QR code or barcode for payment for the first time during the pandemic.
- 40% said they are using QR codes or barcodes for payment more frequently.
- 30% of non-users said they are interested in using QR codes or barcodes for payment.
Digital Gift Cards
- Nearly 50% of respondents said they had used digital gift cards at online-only retailers in the last year.
- 34% said they purchased a digital or physical gift card for themselves in the last year.
- 46% said they are interested in using digital gift cards to make online purchases.
Digital Wallets
- 85% of respondents said acceptance of digital wallet apps by merchants has made shopping easier.
- Segments where respondents prefer to use digital wallets:
- eCommerce merchants (41% of respondents)
- Grocery stores (37% of respondents)
- Mass merchandisers (26% of respondents)
Digital Transactions also observed that customers have readily accepted digital payment methods provided by the payment industry since the beginning of the pandemic, noting the following statistics about overall usage:
- 69% of survey respondents said they shop more frequently at merchants that accept digital payments.
- 54% said they spend more when they have the option to pay digitally.
- 63% said they are more likely to shop at a retailer if they accept the digital payments they use.
- 73% said they want to be able to pay the same way they pay online and in-store.
Smart Rings Seen as New Frontier for Cashless Payments
While payments-enabled wearables have been around for a while, not all types of them have caught on with consumers. Smartwatches are probably the most popular, but a new article from Bloomberg suggests that smart rings might be the next form of wearable payments to take off.
A company in Japan has begun selling the “Evering,” a smart ring intended to function as both a digital wallet and key. Consumers make payments by holding the ring over a payment terminal, similar to the way a contactless card or an NFC-enabled smartwatch works. The ring is linked to a credit card, and customers can access payment histories via smartphone.
B2B's Greatest Hits Of 2021: Bringing Value Beyond Payments Digitization
PYMNTS.com notes the progress made over the past year in the area of digitizing B2B payments, but also notes the importance of meeting businesses where they are. This means continuing to accept paper checks for B2B payments even while adding digital payment options.
A multi-pronged approach to B2B payment should include offering multiple payment options including ACH, cards, etc. Solution providers can also provide additional value through “embedded, flexible solutions that can provide deeper insight into buyer behavior and streamline reconciliation workflows.”
Whether it’s updating POS systems, implementing contactless technology, or digitizing B2B payments, Global Payments Integrated can help ISVs stay one step ahead of their competitors with digital payment methods, new payment technology, and other evolving payment trends. Contact us today for your integrated payments needs, and subscribe to our blog for more of the latest payments industry news.