According to new research, U.S. consumers still prefer plastic when making purchases online – but this won’t last for long. Until now, consumers have shown that credit cards are their favorite online and face-to-face spending method. Worldpay Payments Report 2018 revealed that 31.5 percent use it online, while 40 percent chose it for in-store transactions last year.
Released at the beginning of November, Worldpay’s report also discovered that debit cards and digital wallets were the second most popular online payment methods (20% each). As far as in-store, consumers preferred debit cards, with just 16 percent choosing to use cash.
That being said, it doesn’t appear that debit and credit cards will being holding the top spot for long. For online use, their use appears to be declining in popularity. Credit cards are on track to lose 7.8 percentage points over the next five years, falling to 23.7 percent by 2022. Likewise, debit cards are projected to decline from 20 percent to18.5 percent over that same period.
Meanwhile, digital wallets are gaining more favor with consumers than ever before. Worldpay forecasts that mobile commerce will overtake desktop online commerce globally by 2023. As mcommerce grows, so is digital wallet use.
“Currently 20.9 percent of the market, eWallets are on track to overtake credit cards as the popular online payment method in 2020, at which point they will make up 29.1 percent of the market,” Worldpay says.
Big news for businesses, digital-wallet payments – includes Masterpass, Visa Checkout and PayPal – will comprise 40.5 percent of the online market. Now is definitely the time for businesses to find payment processing services. For example, consider Elavon Costco. Costco decided to partner with Elavon to provide Costco members with reliable credit card processing, mobile payment processing and point of sale systems.In order to stay ahead of the competition, finding the right payment processing provider is key.
“U.S. consumers are turning from their desktop to their phones to make purchases,” Worldpay general manager for North America Global Enterprise e-Commerce, Casey Bullock, shared in a press release.
“Merchants must find ways to optimize their mobile payment and shopping experiences, whether through their mobile app, mobile wallet, or an improved mobile checkout.”
Author Bio:As the FAM account executive, Michael Hollis has funded millions by using elavon costco solutions. His experience and extensive knowledge of the industry has made him financeexpert at First American Merchant.