In a new blog series, we’ll be sharing insights from leading industry analysts and help you navigate the latest trends and changes.
This month we're highlighting:
- Meeting consumers' expectations to pay how they want
- Building digital experiences for the 3D connected consumer
- Real-time payment (RTP) trends and innovations
- The current state of SMB banking in the U.S.
1. Consumers want to use their preferred payment methods
451 Research's Voice of the Connected User Landscape survey (VoCUL)1 shows that U.S. consumers have strong payment preferences and expect to be able to pay how they want.
- Overall, debit cards are preferred to credit cards (60% to 35%).
- BNPL adoption remains strong at 31% across all age groups and higher among Gen Z (50%) and Millennials (46%).
- Younger generations are more likely to abandon purchases if their preferred payment methods aren't on offer: 54% of Gen Z and 44% of millennials (33% overall) say they've done so over the past six months.
IDC's Exposing Consumer Payment Options and Preferences2 report includes similar findings. Aaron Press of IDC says: "Consumers may choose to shop elsewhere if a preferred payment isn't available or easy to use." He recommends that payment processors and technology providers should do more than offer card payments and local currency settlement and should make a range of payment methods available.
Adding new payment methods can be complex, but a modular, flexible solution like Cybersource can make it easier. Our global experience can help you pinpoint which payments work best in which geographies and support you to implement them into your payment flow. We already help merchants accept a wide range of payment types—including global and local cards, wallets, and options like BNPL. We keep pace with evolving payment preferences and maintain relationships with acquirers worldwide to help merchants succeed in multiple markets.
2. Delighting consumers across devices, platforms, and channels
Today's consumers connect to the internet using many different devices, platforms, and channels.
Forrester's The 3D Connected Consumer 2023 reports show that online adult consumers in multiple regions use similar numbers of each.
Connected consumers in:
Average no. of:
Devices
Platforms
Channels
U.S.3
4.6
4.4
5.4
Europe4
4.3
4.7
5.4
Australia5
4.3
4.7
5.5
Metropolitan
India6
4.9
5.3
4.4
Metropolitan
China7
5.2
4.0
4.4
The challenge for merchants is to create digital experiences customers will use, regardless of how they prefer to connect. The recommendations include:
- Break free from device-anchored experiences
- Own as many moments as you can—and borrow the rest
- Orchestrate a portfolio of digital channels
Through our uniquely open payments platform, modular services like tokenization, and an ecosystem of capable partners, Visa Acceptance Solutions can support merchants and their technology providers to create omnichannel experiences for today's highly connected consumers.
3. Real-time payments: usage trends and innovation
Usage trends across real-time payment (RTP) networks suggest a correlation with the participation of banks and nonbanks, according to 451 Research's report 'Real-time payments, Part 1: Usage trends and advanced innovations'.8
Key findings include:
- End-user adoption depends on availability of features such as proxy payment and request for payment
- Real-time account-to-account transfers are growing in all markets covered in the report
- There's ongoing innovation, such as third-party payment initiation, interoperation with digital wallets and cards, and efforts to facilitate cross-border payments
Real-time payments usage across select large markets
Real-time payments in 2022 ($B)
No. of instant payments per capita in 2022
Source: S&P Global Market Intelligence; Central banks, payment regulators. Number of transactions for European Economic Area (SEPA Instant) represents estimated data for 2021. Transaction value for European Economic Area (SEPA Instant) is not available. © 2023 S&P Global.
Visa Acceptance Solutions already enables acceptance of payments made using a number of RTP networks globally. Ask us for more information about RTP and the solutions we can provide.
4. The state of small business banking in the U.S.
It's been a tumultuous decade for SMBs, according to Forrester's The State of Small Business Banking in the US, 2023 report.9
The pandemic (which led to many SMB closures), ongoing economic uncertainty, trade wars, international conflict, and the threat of a banking crisis are among the issues that SMB may face. But many continue to need capital, everyday banking and financial services, cash flow management services, accounting and tax management services, and payment and acceptance tools.
In such a challenging environment, it's more important than ever for SMB merchants to use payment acceptance solutions that can help them boost their bottom line. A single connection to our payments platform helps streamline acceptance and provides access to fraud management tools that help merchants capture more revenue and reduce costs. And our Authorize.net solution can help even the smallest businesses get paid online, in person, and over the phone.
Let’s start a conversation
We'd love to talk with you about these and other trends and innovations in the payments industry. Feel free to contact us and discover how Visa Acceptance Solutions and our uniquely open payments platform can help you build the future of payments.
And keep an eye out for our next update for more trends and analysis.
Cybersource, Authorize.net, and their products are part of the Visa Acceptance Solutions family of brands. Learn more about our comprehensive suite of solutions here.
1 451 Research: Consumer experience preferences remain steady; Gen Z averse to certain technologies – Highlights from VoCUL: Connected Customer, September 26, 2023
2 IDC: IDC Exposing Consumer Payment Options and Preferences, Doc :# US51241723, September, 2023
3 Forrester Research: The 3D Connected Consumer 2023: US, September, 2023
4 Forrester Research: The 3D Connected Consumer 2023: Europe-5, September, 2023
5 Forrester Research: The 3D Connected Consumer 2023: Australia, October, 2023
6 Forrester Research: The 3D Connected Consumer 2023: Metropolitan India, October, 2023
7 Forrester Research: The 3D Connected Consumer 2023: Metro China, October, 2023
8 451 Research: Real-time payments, Part 1: Usage trends and advanced innovations, September 26, 2023
9 Forrester Research: The State Of Small Business Banking In The US, 2023