The payment news we focus on this week explores how digital and invisible payments are gaining traction with consumers. Let’s dive in.
The numbers behind digital payment adoption
Digital Transactions shared the results of a digital payments survey sponsored by Discover Network and done by 451 Research. One finding from the survey showed that about one-third of consumers who now participate in digital payments through “digital wallets, peer-to-peer payments, QR codes, and buy now pay later services began using them only in the past year,”
proving just how flexible consumers can adapt to newer and hygienic ways to pay under the right circumstances.
The survey also learned that related services like curbside pickup and mobile ordering attracted many new users due to the pandemic. While ecommerce spending continues to surge, surveyed consumers who plan to go back to in-store shopping claim they will continue to prefer using these services, in addition to contactless payments.
The research suggests now could be when digital payments begin to expand and gain share over traditional payments methods. For those that need a primer on digital payments, refer to our blog on mobile payments becoming the new norm.
ACH payments reach all-time highs
According to Payments Dive, Nacha reports that electronic payments made on the network rose 7.7% in Q3 of 2021, compared to last year. The payments volume also surpassed the record set during Q2 of 2021.
What is contributing to the rise? B2B and healthcare payments. More businesses are transitioning to ACH as their first foray into digital payments. At the same time, healthcare practices continue to see strong adoption due to the speed and convenience of receiving payments.
ACH’s technology has been around for decades. It’s a payment option that continues to innovate while still keeping transaction fees low. Learn all about ACH and why ISVs should make it a payment offering within their product.
Another use case for connected cars: toll payments
PYMNTS reports that major carmakers Mercedes-Benz and Audi will be offering Gentex’s Integrated Toll Module (ITM), which means these cars won’t need to stop at a toll booth or have a state-linked transponder to pay tolls.
The toll module “works with 98% of toll roads in the US and is compatible with 15 tolling brands, eliminating the need for multiple toll tags and embedding the payment process directly into the vehicle itself.”
Other exciting examples of connected cars making payments invisible include paying for parking meters and gasoline.
Capgemini: Customer experience will drive the new era of payments
Tearsheet shared their takeaways from Capgemini’s 2021 World Payments Report, focusing on four charts that show the importance of the customer experience in payments.
Two charts caught our eye. The first cited the importance of personalized experiences and “lifestyle-embedded payments” to today’s consumers and businesses. Younger generations want payment methods that are user-friendly, engaging, and budget-focused, while companies want solutions that fit their digital transformation goals.
The second highlighted the report’s focus on Buy Now Pay Later (BNPL) trends, invisible payments, biometrics in payments, and cryptocurrency payments, which currently represent a small segment of the payments ecosystem. Capgemini suggests that adoption will increase in the future as they can remove various hurdles from traditional payments, such as high credit card charges, friction at checkout, transaction privacy, and high transaction fees for cross-border transfers.
Mastercard introduces accessible card design for visually impaired
Finextra reports that “Mastercard has delivered a new design standard using a series of notches on the side of the card to help people distinguish between a credit, debit, or prepaid card.”
According to Raja Rajamannar, Mastercard’s chief marketing and communications officer, “For the visually impaired, identifying their payment cards is a real struggle. This tactile solution allows consumers to correctly orient the card and know which payment card they are using.”
This is a good direction towards inclusivity, as many cards have flat designs without embossed names and numbers. Hopefully, these designs will make commerce easier for the 2.2 billion people worldwide with visual impairments.
We hope you find this roundup helpful in staying ahead of the latest payment trends! Keep informed on the payment industry by subscribing to our email newsletter or following us on social media.