US consumers ‘ready for change in payments’

Multichannel online banking payment network communication

The US has been slower than other key global markets to embrace change and innovation in the payments space, but recent research has indicated that many consumers in the country – particularly younger people – are onboard with the ongoing evolution of the industry.

In the latest TSYS US Consumer Payment Study, 51 percent of respondents expressed an interest in using a mobile wallet to make in-store purchases, instead of a payment card. That marks an increase of 11 percentage points from 2016.

More than two-thirds (68 percent) of those who had loaded their credit or debit card details onto a mobile wallet said they expect to use this technology to make at least half of their in-store purchases within two years.

Where P2P payments are concerned, 29 percent of the US consumers surveyed said they had used a service such as PayPal, Venmo or Zelle. The proportion was higher in the 25 to 34 age group (45 percent).

Other key findings showed that just over a quarter of people in America own an AI-based device, such as an Amazon Echo or Google Home. Six out of ten respondents who owned one of these items – rising to 76 percent of 25 to 44-year-olds – said they would use it to make purchases or payments if the option was there.

However, many consumers expressed a preference to pay for things using more traditional methods, such as debit cards (44 percent), credit cards (33 percent) and cash (12 percent).

Allen Pettis, executive vice-president and chief customer officer for issuer solutions at TSYS, said: “Our latest study confirms that consumers are ready for change and adapting to the ever-evolving payments industry as new solutions are introduced. Because of this, retailers and payments providers can continue reimagining the digital purchase experience for consumers.”

One of the biggest changes set to affect US businesses and consumers over the coming years is the adoption of real-time payments, following the introduction of the RTP system in November 2017.

 

Image: oatawa via iStock

Written by Jack Dougal

Jack Dougal

Jack Dougal is Banking.com's resident news reporter. He writes regular blogs covering the latest stories and key developments in the global financial services industry.

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