The pandemic has slowed the use of cash and accelerated the acceptance of a diverse mix of digital spending channels, the most popular being contactless. Onbe CEO Bala Janakiraman explains why digital payments are key to meeting consumers where they are in the PYMNTS e-book, “Endemic Economics: 32 Payments Execs on the ‘Next Normal’ That Never Happened”.
Onbe recently surveyed over 1,000 respondents in our Future of Payments survey to understand what consumers value most when making and receiving payments, which payment methods they are most open to , the new payment technologies they plan to try and the methods they will start using. useless. Unsurprisingly, we’ve seen a shift from cash payments to digital payment methods, as respondents said they plan to use mobile wallets (20%) and P2P apps (19%) more in 2022. And with 65% of consumers believing digital payments are the most secure, nearly 3 in 4 respondents prefer this method of payment over cash or check.
This mindset shift has been spurred by the COVID-19 pandemic, which has slowed the use of cash and accelerated the acceptance of a diverse mix of digital spending channels, the most popular being contactless. . This shift continues to gain momentum in 2022, with almost a third of respondents saying they plan to use cash and checks less frequently or not at all this year. And online shopping has had a huge impact on business innovation. As the appeal of contactless payments grew, more consumers turned to online or in-app purchases. 18-24 year olds showed the most interest in shopping online, with 26% planning to make more online purchases in 2022, compared to 19% of consumers aged 45 and older.
Not only is the offering of digital payment options non-negotiable for businesses, but consumers really appreciate the choice when it comes to payments and disbursements. And by moving to a digital-first payment and disbursement platform, businesses can offer consumers the choice of modality – from traditional check to instant and convenient virtual card, push-to-debit and more. – as well as the ability to spend through any channel, such as online or in-app. Innovative organizations will offer consumers a variety of payment method choices.
Younger generations in particular are embracing cryptocurrency as a payment choice. Our survey found that predicted cryptocurrency usage has doubled year over year (10%), and that number jumps to 40% among 18-44 year olds. investments near retirement.
As a result, 58% of 18-44 year olds were more open to owning and using bitcoin and cryptocurrencies than those 45 and older (31%). Cryptocurrency has the potential to skyrocket among younger generations, but they will never be interested in using options like bitcoin or cryptocurrency if companies don’t offer it.
The future of payments is digital, and the only way to make the most of it is to meet consumers where they are by giving them choice of payment method and allowing them to shop where it suits them. suitable – online or in the app. By doing so, brands show that they understand their consumers and can adapt their services to meet market demands as it evolves. Onbe’s wide range of payment options brings customers closer to their customers and prepares them for the innovation to come.