Bi-Weekly Roundup 7/29: Latest Payments Industry News and Trends

After a year and a half of a pandemic, the payment industry is taking a look at how the landscape has changed. This week’s payments industry news roundup looks at consumer payment preferences as well as which pandemic-related changes might be here to stay.

Consumer Adoption of Contactless Payments Continues to Surge, Says Latest CardFlight Report

Digital Transactions shared statistics from the latest CardFlight Small Business Report, noting that consumer usage of contactless payments continues to grow. The CardFlight report found that “during the week ending July 18, contactless transactions increased 597.7% from the March 2020 baseline period.”

CardFlight also noted the growth of both card-not-present (CNP) and card-present transactions, sharing that “compared to the baseline period in March 2020, card-not-present transactions grew 88.6% for the week ending July 18, while card-present transactions grew 82.9%.”

Learn more about different forms of contactless payments in our guide.

The Data Around How Consumers Prefer to Pay

PaymentsJournal looked at a new report from Mercator Advisory Group that discusses data around consumer payment preferences. The report surveyed over 3,000 U.S. adults about the buyer experience and their preferred payment methods.

  • 13.5% of consumers use the same payment methods when they shop online and in person.
  • 10.3% of consumers say it is important to them that they have a wide choice in payment methods they can use when shopping.
  • 9.6% of consumers find paying with cash less convenient than paying with a card.

The report shows the importance of ensuring a variety of payment options are offered to consumers. ISVs should ensure their software solution has payment functionality for all the ways their merchants’ customers want to pay during their shopping experience.

Some Second Thoughts As 'Here To Stay' And 'New Normal' Predictions Rise

With so many pandemic-related changes across the payments landscape in the past year and a half, Pymnts.com took a look at which trends might stick around.

Noting that the results of a Google News search for the phrase “here to stay” included bitcoin, dining and delivery, subscription services, and QR codes, the article then took a closer look at cryptocurrency as well as the omnichannel experience.

Pymnts.com shared recent data showing that consumer interest in spendable cryptocurrency is growing, noting that 60% of cryptocurrency users are ‘very’ or ‘extremely’ interested in using cryptocurrency to make online purchases because they think these transactions are more private or secure.”

The article also observed that the recent pandemic-related shift to digital payment technology focused on how customers prefer to transact with businesses via multiple channels. Data indicates customers will continue to seek out omnicommerce options that give them the most convenience, with 94% reporting that their choice of merchant is driven by convenience.

Restaurants Now Do 70 Pct Of Sales Online And On Phone, PYMNTS Data Show

The effects of the pandemic can be seen across industries, including major changes in business practices. Perhaps one of the biggest changes can be seen in the restaurant industry.

The latest Restaurant Readiness Index from Pymnts.com shows a major sea change in where restaurants’ sales are coming from. For the average restaurant, 69% of their sales are now initiated either digitally or over the phone, with only 31% of sales coming from orders eaten on-site.

Even those 31% of indoor dining sales have now been enhanced with digital technology, with the National Restaurant Association reporting that over half of U.S. full-service restaurant operators have added QR code menus since the beginning of the pandemic.

Take a look at other recent payment processing changes that have occurred in the food industry.

U.S. retail sales jumped 11% in June over last year, Mastercard says

Payments Dive took a look at recent growth in the retail sector. A recent Mastercard report found that June 2021 was the ninth consecutive month of U.S. retail sales growth, excluding auto and gas expenses. The growth in eCommerce sales was also mentioned, with the report noting that online sales grew by 8.3% YoY in June 2021.

“Buy online, pickup in store” is another shopping method that has seen exponential growth. Since March 2020, BOPIS has more than quadrupled since March 2020 among U.S. consumers, and nearly 27% of merchants now offer BOPIS services.

Stay tuned for more payment news, and to stay up to date on the latest payment trends, subscribe to our blog.

Ashley Jones

Marketing Content Coordinator

Ashley Jones is the Marketing Content Coordinator at Global Payments Integrated, where she is responsible for digital content strategy, development, and analysis. A communications and digital marketing professional, Ashley has experience in the areas of social media, digital content creation, event planning, broadcast journalism, and administration.

View Profile

Ashley Jones