Consumers demand options in the payment experience

What will payments look like in 2022 and beyond? In “The way payments are now made, ” Dave Fura, SVP, responsible for card solutions, FIS, joined 32 other payments managers to discuss what the ‘new normal’ in payments looks like. Fura explores how the payment process has been transformed as well as changing consumer preferences due to the pandemic.

Over the past year, consumers have driven the rise of several innovative payment technologies. These technologies have reshaped the experience of consumers, as well as their preferences and expectations for the payment process.

Remember what the checkout process was like a year ago: A customer walked into a store to make a purchase, saw what they were looking for, then brought it to the checkout. In most cases, they would pay cash or use a debit or credit card.

Now, due to changing consumer preferences due to the pandemic, the payment process is completely different. Those same customers now expect options and instant gratification when it comes to how and when to pay for their items. Whether in person or online, consumers demand that the entire process also be fast, frictionless and safe. This has led to the rapid adoption of technologies such as mobile wallets, contactless payments, and buy now, pay later (BNPL) solutions.

Respondents to FIS’s Pace Pulse 2021 survey revealed that COVID-19 restrictions have altered many drinking behaviors. The percentage of respondents using mobile wallets or contactless payments at checkout more than doubled from April 2020 to February 2021, while the percentage using mobile payments increased by almost two-thirds. This growth is expected to continue from generation to generation, as the pandemic has altered things like menus and instructions to display on a mobile device – compelling enough that even the most digitally resistant consumers are starting to use. these technologies. Drastic consumer shifts like these mean financial institutions and retailers need to ensure that paying with a mobile wallet is a viable payment option in their businesses.

The buy now, pay later market is expected to grow 181% by 2024, according to FIS’s 2021 Worldpay Global Payments Report. In fact, according to the same report, BNPL’s services grew by almost 78% in 2020 – the biggest jump of any payment type – and are expected to account for 4% of global e-commerce spending by 2024.

The concept of post-purchase payment programs is not new, but the ease of use, flexibility and mutual benefits they offer at different stages of the value chain have made them one of the payment segments. fastest growing. Post-purchase installment loans give cardholders the flexibility to make larger purchases and can increase card use and preference by giving cardholders more choice and control. Organizations can use after-purchase installment loans to add functionality to differentiate their offerings and increase consumer loyalty to their brand.

The payment process is completely different from what it used to be and will continue to adapt as new solutions are developed. Technology developers such as FIS take on a support role for their customers, pairing them with the right payment technology that meets all of the end consumer’s expectations regarding their payment experience.

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NEW PYMNTS DATA: DIGITAL BANKING STUDY – THE BATTLE OF BREWING FOR WHERE WE WILL BANK

On: Forty-seven percent of U.S. consumers avoid digital-only banks due to data security concerns, despite considerable interest in these services. In Digital Banking: The Brewing Battle For Where We Will Bank, PYMNTS surveyed over 2,200 consumers to reveal how digital-only banks can boost privacy and security while providing convenient services to meet this unmet demand.

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