Monday, August 19, 2024
And an overwhelming number (63 percent) expressed concerns about losing cash as a payment option. In fact, 44 percent of consumers surveyed indicated a desire to purchase goods or services online and pay for them using cash at a local store.
Paysafe partnered with Sapio Research to poll 14,500 consumers in 14 countries in North America, Latin America and Europe, in May and June 20204 about their payments habits. The survey was administered online and focused on online shopping and payments.
Security is top of mind for many consumers. More than half of those polled (54 percent) said security in a business's payments process is a key factor in making online purchases. Two-thirds reported feeling better when buying from a company if they know there are security steps in place to protect their data.
Diversity is the name of the game when it comes to spending. Debit cards are tops—with 53 percent more consumers using debit cards more frequently in 2023 compared with 2022. But bank transfers, credit cards and digital wallets have also increased in popularity, at 39 percent, 33 percent and 32 percent, respectively, year-over-year growth.
Buy now, pay later made modest gains, with a 14 percent gain in 2023 compared with 2022. Better than half (58 percent) of consumers have made purchases through social media; 38 percent have done so multiple times a year. About one third (32 percent) are making payments using wearable devices such as smartwatches.
Not surprisingly, the demand for variety is being driven by younger consumers. Consumers between the ages of 18 and 43 (Gen Z and millennials) are increasingly using their digital wallets (36 percent using for online purchases), eCash (16 percent) and cryptocurrencies (8 percent).
Gen Z and millennials are also more likely to embrace innovative payment options, such as AI-powered payments. Over a third (36 percent) of 18 to 43-year-olds are fully comfortable with AI being used to improve payments. On the other hand, 33 percent of those over 60 years old are not comfortable at all with the idea of AI in payments.
"Consumers are comparison shopping more than ever, not only to find the best deal but the best payment experience that delivers choices, security and speed, and keeps them coming back," said Bob Legters, Paysafe senior vice president, in discussing the research.
Security is top of mind for online shoppers. More than half of those polled (54 percent) said security is important to them when deciding how they pay online. In fact, it was the biggest factor influencing consumers' choice of payment method, with convenience and the number of payment options offered also mattering a great deal, the researchers found.
Security is especially important to older consumers. Sixty percent of those over the age of 60 say they choose a payment option because they can trust that it's safe.
These findings are consistent with previous consumer spending reports conducted by Paysafe, where security has been shown to drive purchasing decisions. "Our 2023 report found that 20 percent of people prefer to buy from large businesses because they feel more secure," researchers noted.
Businesses also need to do more to reassure shoppers about the security of their interactions, the Paysafe report stated. Forty-seven percent of consumers don't feel comfortable entering their financial data when paying online, and 37 percent have abandoned their shopping carts because they didn't feel their personal data would be safe.
While better than half (54 percent) of consumers believe that in the next 10 years everyone will be using a mobile wallet on their smartphones instead of cards or cash to pay for purchases, they are not necessarily happy about that prospect.
Many consumers (63 percent) said they worry about losing access to cash, and 35 percent would feel uncomfortable leaving home without taking a physical card or cash with them to pay for things.
American consumers are particularly attached to cash, with 69 percent feeling uneasy about not being able to use it. Older folks are also very attached to cash: 68 percent of those over the age of 60 say they don't want to give up cash. 
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