The Strawhecker Group (TSG) and Electronic Transactions Association (ETA) released a Consumer Holiday Spending Survey report that shows consumers are utilizing different types of payments options as they attempt to shop safely, both in person and online, this holiday season. For in person purchases, over 72 percent of consumers will use electronic payments as their first payment method choice, which includes traditional credit/debit cards, contactless cards, and digital wallets as the top methods. For online purchases, traditional credit/debit cards were cited as consumer’s number one choice, followed by 1-click payment options, and digital wallets.
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“As we’re all aware, the COVID-19 pandemic has changed the way most consumers work and live,” stated Jodie Kelley, CEO of ETA. “Fear of exposure to the virus has led businesses to expand their digital offerings and consumers to rely increasingly on digital, mobile, and online channels to securely conduct day-to-day activities.”
Consumers are embracing methods that allow them to pay for purchases online quickly and securely. According to survey results, 81 percent of consumers have used 1-click payment methods, with 37 percent stating they use these services frequently. The service allows consumers to sign-up once to access their saved cards and then pay securely for purchases across retailers with one click.
Sixty-one percent of consumers that have used contactless card payments reported they had a positive impression. Many consumers have also tried emerging payment methods like buy online pick-up in-store and curbside pick-up (27 percent), digital wallets (25 percent), and delivery services for gifts (27 percent).
“The COVID outbreak reinforced the already growing trend of online shopping and the general shift from physical to digital payments,” said Mike Strawhecker, President of TSG. “It has encouraged experimentation, coaxing consumers to explore different ways to access products and services and accelerating certain behaviors.”
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