Credit report

Report: Gain from Contactless Payments on Credit Cards

Credit cards may be consumers’ preferred means of payment, but contactless methods are waiting in the wings.

The latest installment of PYMNTS’ Next-Gen Debit Tracker, made in collaboration with PULSE, shows that while 42% of respondents said they preferred to transact with credit cards, 36% said they preferred contactless options.

Get the tracker: Banks must do more to meet contactless payment needs of debit card users

These preferences and require merchants to change the payment options they offer, with more than three-quarters of merchants saying they offer contactless payments. Mobile wallets were the most common offerings (63%), followed by contactless card payments (44%) and QR codes (25%).

About a third of consumers said they want merchants to keep contactless payments as an option once the pandemic has passed. The report also revealed that consumers make 37% of their monthly purchases online. This is reflected in what retailers see, as they report that they now get 58% of their total sales through online channels.

Asia-Pacific consumers favor mobile payments

Also in the tracker is a study that found 90% of consumers in the Asia-Pacific (APAC) region have used mobile payment apps at least once in the past year.

More than half of these consumers said they used digital payment methods at least once a week, while around 15% said they started using digital options at the start of the pandemic.

These results reflect the rise of digital payments in APAC, with 58% of consumers making digital payments regularly reporting using mobile payment apps, and 53% reporting using mobile banking apps. Debit cards were also more popular than credit cards in the region, at 36% and 33%, respectively.

The report also indicated a mobile-first approach to accessing digital payment methods, noting that APAC has one of the highest concentrations of mobile usage on the planet. Smartphone adoption in Asia-Pacific is expected to reach over 80% by 2025, with 63% of digital users making payments on Android smartphones, compared to 25% on laptops.

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NEW PYMNTS DATA: AUTHENTICATION OF IDENTITIES IN THE DIGITAL ECONOMY – DECEMBER 2021

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