COVID triggers changes in payments habits among 86 % of consumers
More than eight in ten consumers ( 86 %) say that their payments habits have changed since the start of the pandemic , with 59 % trying a new payment method for the first time – a number which rises to 77 % among the 18 – 24-year-old age group . That ’ s according to new research released by leading specialised payments platform , Paysafe , in which 8,000 consumers were surveyed for the company ’ s latest Lost in Transaction report .
The research , which was conducted on behalf of Paysafe by Sapio Research in March and April 2021 and covers the US , UK , Canada , Germany , Austria ,
DIGITAL WALLETS ARE EMERGING AS THE MOST POPULAR ALTERNATIVE PAYMENT METHOD WITH 43 % OF RESPONDENTS USING THEM GLOBALLY IN THE LAST MONTH .
In terms of awareness , more than a third ( 38 %) of consumers say they are now more informed of the wide range of different payment methods available to them than they were prior to the pandemic , and almost a third ( 31 %) are now more likely to use an alternative payment method when making an online purchase , rather than just automatically reaching for their credit or debit card .
That said , card payments continue to be the dominant online payment method overall , with more than half of global consumers having used a debit ( 54 %) or credit ( 51 %) card to complete a transaction in the past month . Against this backdrop , however , digital wallets are emerging as the most popular alternative payment method with 43 % of respondents using them globally in the last month and the number rising across Europe with 47 % of respondents in the UK and 55 % in Italy . Overall , 32 % of consumers globally are using digital wallets more frequently than prior to the pandemic , 13 % are using prepaid cards more and 8 % are using online cash , or eCash , solutions more regularly .
The research also reveals that having a choice of payments at the online checkout has been a key differentiator , even more so during the pandemic , with more than half ( 53 %) of all consumers agreeing they would not return if they suffered a poor experience or lack of choice . Although a large proportion of consumers ( 63 %) seek tighter payment security measures , the number of consumers prioritising convenience has increased by 110 % in the past 12 months .
When it comes to in-store shopping , 43 % of consumers also noticed which retailers made efforts to upgrade their checkout in reaction to the pandemic , with 28 % saying that businesses did not react quickly enough to make it safer . However , nearly half ( 48 %) of consumers reveal they are planning to shop in stores as frequently as they did pre-COVID-19 , highlighting the importance of an updated checkout for offline retailers too . And , indicating a perhaps surprising comeback for cash after the pandemic , 50 % of consumers plan to make at least 25 % of their transactions using cash in the future . x
Bulgaria and Italy , explored changing consumer behaviours towards payments . Unsurprisingly , the key driver cited by respondents for adopting new payments methods was due to being unable to make in-person payments ( 33 %) but wanting to track spending more closely ( 26 %) and concerns over fraud ( 25 %) also came up as strong trends .