Recently PYMNTS.com put out its 2015 U.S Consumer Payment Choice Study which takes a look at the state of mobile purchases in the U.S. What Sarah Hartman, a Senior Director of Payment Solutions at TSYS, and Karen Webster, PYMNTS.com CEO MPD, found is very important to the rewards and loyalty industry.
The mobile space is changing and becoming increasingly popular among consumers.
E-commerce is up and so is the attentiveness to interest rates in the mobile sphere. In addition, a great and important change that has happened this year is the awareness of chip cards. Only 13% of people are unsure if they have received a chip card compared to last year where 52% of people did not even know what one was. And 50% of people have been issued a card, a number that will rise to 98% by 2017.
Consumers become more confident with credit
People are constantly checking balances and are interested to see their money grow. This has resulted in the interest in credit staying about the same but the interest for debit to drop slightly. The growing economy has also played a factor in this as people are more confident and more willing to use credit rather than debit. It allows for more freedom and rewards but is also riskier for the consumer. Hartman tells Webster that she has seen “a very consistent story” from consumers that rewards and loyalty are the best influencers to encourage payment behavior. This year as well as last, over 50% of consumers reported that they find rewards and loyalty to be "the most attractive driver.”
Banking apps are also expanding
There has been an increased number of people making online and mobile payments. People are now looking for banking and bill pay to be available on their mobile devices. As time goes on mobile banking and payments apps will have increased options and will allow people to live more autonomously from their mobile device. This study really shines a strong light on where mobile payments are heading. There will be increased rewards and loyalty, banking and payments on mobile devices. A new door is opening and there is a “lot of opportunity for financial institutions.”
Read more on the PMNTS.com study, 2015 U.S Consumer Payment Choice Study, here.