This week’s payment news roundup covers the evolving ways customers like to pay, the latest in restaurants and retail payments, results from Cyber Monday, and more.
New study: debit, credit in physical stores pull ahead in digital payments
PYMNTS.com recently launched a new series titled "Digital Economy Payments: How Consumers Pay in the Digital World,” where they surveyed 3,000 consumers to discover patterns in consumer spending during the pandemic.
Overall, the survey found that 37% of consumers used debit cards to pay for purchases, while 32% said they used credit cards. Only 13% of survey respondents reported using cash.
The study found an interesting difference in the types of payment methods that consumers use in-store vs. online:
- When making purchases in physical stores, over 38% of consumers pay with debit cards and nearly 33% pay with credit cards.
- The study found the reverse is true with online purchases - 33% of consumers pay with debit cards when making online purchases, and 37% pay with credit cards.
Supermarkets rethink physical and digital aisles for grocery’s connected future
PYMNTS and ACI Worldwide released a study about “What Consumers Expect From Their Grocery Shopping Experiences.” The study looked at how the grocery shopping experience has changed and become more digital over the past two years. Among their findings:
- 34% of consumers now buy groceries online.
- 18% of consumers prefer ecommerce options to in-store shopping.
- In-store, 56% of consumers pay for groceries with debit cards, and 51% pay with credit cards.
- For digital grocery purchases, 57% pay with debit cards, and 65% pay with credit cards.
- 56% of consumers pay for their in-store grocery purchases using debit cards and 51% use credit cards. Those numbers jump to 57% and 65%, respectively, for digital purchases. Meanwhile, only 43% of consumers pay for their in-store purchases with cash.
Experts predict even more of a shift toward digital payment options in the grocery space, including increased use of QR codes.
In Cyber Monday’s shopping frenzy, smartphones cooled off while BNPL took off
The results of Cyber Monday 2021 are in. Mastercard Inc.’s SpendingPulse report showed that total ecommerce retail sales were up 8.7% compared to Cyber Monday 2020. Interestingly, they were also up 11.7% over the pre-pandemic Cyber Monday 2019.
When it comes to shopping methods, the Adobe Digital Economy Index noted that consumers used mobile devices for just under 40% of sales - with desktop devices making up the remainder. Analysts noted that the rise in consumers working from home may have contributed to this statistic.
The number of transactions using buy now pay later rose 1% compared to Cyber Monday 2020, with sales volume up 21%.
Consumers expect more ecommerce fraud during the holidays, and they blame marketplaces
While more and more shoppers are making purchases on ecommerce platforms, some of them still have concerns. A recent survey asked consumers what their biggest fear is when shopping online this holiday season. The results:
- Goods not being delivered: 31%
- Seller fraud: 24%
- Being sold counterfeit items: 18%
Consumers also say that when it comes to seller fraud, they’ll hold the marketplace housing the fraudsters’ stores responsible - 72% of survey respondents said if they ordered an item that was never delivered due to seller fraud, they would not do business with the marketplace again.
Consumers also expect fraud on ecommerce sites this year, with 52% of survey respondents saying they expect more ecommerce fraud this holiday shopping season compared to 2020.
Deloitte: the restaurant of the future should evolve to serve consumers in new ways
Many industries experienced the same “digital shift” during the pandemic that the payment industry did, and the restaurant industry was no exception. As with other industries, restaurant consumers are getting used to new digital options and expect them to continue.
A new report from Deloitte found that 57% of consumers use a digital app to order restaurant food for off-premises dining - up from 54% in 2020. Interestingly, in-restaurant digital ordering is growing even faster. 64% of dine-in consumers prefer to order their food digitally versus 53% in 2020.
Payment methods at restaurants are also evolving, with Deloitte noting that 25% of consumers prefer a digital or contactless payment method to a physical one.
Conclusion
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