The past 10 years has been the “Fintech Decade.” Spurred by low interest rates and technology companies expanding into financial services with a growth-first mindset, consumers have been presented with a myriad of new choices in payment methods. But have consumer behaviors changed that much?
While new payment modes such as mobile payments and digital commerce have certainly been adopted, and that adoption continues to grow, this year’s Buyer PaymentsInsights survey shows how consumer payment behaviors have remained relatively consistent across categories like income, age, and household size. For financial institutions, payment services providers, and card issuing banks, the message is clear: the models they have built their payment business strategies on for generations still apply. Income, age and education continue to correlate to preferences in payment methods and can help guide strategies for credit card usage and the interest and interchange revenue those cards generate.
Additionally, incomes with higher household incomes prefer programs that increase product “stickiness” and top-of-wallet status; namely, higher income households participate in rewards and loyalty programs at a higher rate. They also prefer the convenience of online shopping to in-person experiences and seek to optimize their time while leveraging their payments for rewards, discounts, or cashback on purchases. Higher household income buyers see payments as a part of a larger financial picture, one they are interested in improving, while lower income households prefer debit and prepaid cards, seeing payments as a tool for budgeting and spending control.
Highlights of the research report include:
- Leveraging Purchase Power
- Preferred Payment Methods
- Reward/Loyalty Programs
- Primary Shopping Channels
- Alternative Checkout Options and Payment Methods
- Shopping Experiences – Opinions and Expectations
Learn More About This Report & Javelin
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