More than a third of UK shoppers have found a new payment provider since the start of the year, with more turning to contactless payments and digital wallets, according to a report by Capgemini.
64% of consumers now use contactless payments more often, with nearly half (48%) claiming they have started using digital wallets.
The new research backs up widely held assumptions that consumer payment habits have changed quicker because of covid-19.
Shoppers have become much more comfortable with the idea of using cards, either Chip and PIN or contactless.
More are also using digital wallets and electronic payments like Apple or Samsung Pay.
Even those who’ve previously resisted the move from cash are now using contactless cards since the outbreak of the pandemic.
More significantly for businesses, these customers also say that they are not likely to return to cash payments, even after things return to normal in the coming months and years.
With the accelerated reduction in the use of cash, businesses are under more pressure to introduce alternative payment methods.
Shoppers have become more aware and accepting of safer payment habits, including reducing touch-based transactions, such as Chip and PIN or cash.
This is further highlighted in some key sections of Capgemini’s report.
In the report, it states:
- 45% of consumers have increased and will continue to increase their use of digital payments in-store
- 46% say that digital payment use in-store will become more important to them in the next 6-9 months
- 40% say they prefer stores that offer contactless payments
An earlier report by Capgemini (published in March 2020) also highlighted how consumers were becoming more accepting of “contactless” shopping before the pandemic.
In March, 70% of those surveyed said they’re now more comfortable using their mobile phones to make payments. This is only likely to have increased over the past few months.
There will be cash payments still being made today, and there will be cash payments made for years to come - probably.
But the last few months have accelerated the trend towards new, safer, consumer payment habits. They’ve realised the myths they’d heard about contactless card machines aren’t accurate.
Those who were already comfortable with contactless have adopted it fully.
Those who were on the fence have started using the new technology, and realised the benefits. These customers aren’t going to go back to cash, so you must adapt to meet their expectations.
If you’ve been thinking about using contactless card machines, or are wondering if you could get a better deal with a different supplier, get in touch with us today.