"Twelve Days of Christmas" is a classic holiday, although some of us at PYMNTS still do not understand why anyone wants to take the hamburger away from what seems like a nice presence in a pear tree. But hoping to jump on the Eid vehicle – and provide a vision backed by data in the most important payment trends for 2019 – allowed us to provide this list of dozens of ways paid by consumers (and some companies) now, and the ways to prepare to play big roles in 2019.
For the most part – unless otherwise indicated – this list is based on the new "How to Pay" report from PYMNTS in collaboration with Visa. The results, which are free of charge, come from survey responses to 2,800 US consumers who were asked about the devices they owned and how they used them to buy things. They also provided details about their purchases over the past seven days, the devices they used to make these purchases, and why they made a purchase using this device in this way.
The results listed in the list below take into account the latest payment technologies, paying attention also to traditional methods that continue for various reasons in guiding consumer and corporate affiliations.
So, how will consumers (and some companies) pay?
# 1: With multiple devices
Having only a smartphone – which applies to 3 per cent of the population – seems so old these days that it does not even have a hip or a retro (giving you time). Consumers should be attracted to consumers who shop and deal with different devices connected to the Internet. This includes not only smartphones, tablets and other computers – 17 percent of consumers own these devices but not like other devices – but they have connected devices and speakers (35 percent of consumers, with the growing smartphone market) To wear (its users, on average, have an annual income of $ 79,406). More generally, 36 per cent of consumers have six or more devices, and you can bet that this proportion will grow in the near term.
# 2: With their voices
Voice-supported retail sales are growing at a faster pace than many observers expected, and around 27 per cent of consumers have an active voice device, up from 14 per cent last year. Customers are well trained to use voice for web searches and other activities, and they buy voice-activated devices that can perform payment and trade tasks. The lucrative "win-win" consumer sector – a relatively high gain, highly educated, and approaching peak earning years – is particularly fond of this technology, with 31 per cent of speakers having voice activation. In addition, Adobe retail projects will prove to be a great success during the 2018 shopping season – and consumers who are already committed to technology will buy more services for themselves and others.
# 3: via automatic payments
No one loves the friction of clouds, and the growth of automatic payments allows consumers to get smooth transactions and continue their lives. In 2018, 49 per cent of consumers surveyed expressed their desire to make automatic payments at the gas station, up from 41 per cent in 2017. That's not all. The interest in paying automatic payments in restaurants, instead of waiting for a check, increased from 37 percent to 39 percent.
# 4: By faster payments
Not only are consumers paying, of course, but other companies and institutions. No one likes to wait for money, whether through checks or payments. Continuous deployment of real-time payment technology helps meet these demands while increasing payment infrastructure in the digital age. 24% of consumers want to get their wages in real time, and 70% of consumers are interested in shorter payment cycles. Fastest payments can have a big impact: Consumers said that if their wages were paid faster, they could manage their cash flow better (53 percent) and pay bills (53 percent).
# 5: With payment cards
Do not even think of a plastic account that still holds a wide appeal. The tendency to use credit and debit cards on connected devices is particularly high between Baby Boomers and Bridge Millennials – with 72 percent and 53 percent using these channels, respectively. Credit and debit cards are also the preferred method of payment when consumers travel abroad. Of the 54 per cent of the participants who made a purchase from foreign traders, 68 per cent preferred the use of credit and debit cards during their purchase.
# 6: Mobile Personnel-to-Person technology
It has been a year of P2P pay-off, and all indicators point to greater growth in 2019. Zelle-P2P-supported service of Bank of America, JPMorgan Chase and other financial institutions (FIs) – said in the third quarter results that transaction volume increased 16 percent On an annualized basis, and that the total amount of movable funds increased by 13 percent over the same timeframe. In recent financial statements in the third quarter, Venmo played a significant role in the positive nature of this report, with Venmo's total volume of pay increasing 78 percent year-on-year. This growth has led providers to ensure P2P integration into their offerings, including restaurants.
# 7: With biometrics
The promise of vital payments – closely linked to biometrics authentication and identity verification – has recently been shown in China on November 11, known as Singles Day, a major online shopping event in that country. According to one report, about 60 percent of customers pay by fingerprint or by taking a self-portrait during an individual day. In the meantime, Paytm, based in India, has begun working on a face recognition tool to enable digital payments.
# 8: via PayPal
The holiday season for 2018 was more than its kind so far in PayPal. For the first time in the company's history, mobile phone payments exceeded $ 1 billion, making it Black Friday (November 23) and Cyber Monday (November 26th). On black Friday specifically, mobile payment volumes surpassed their counterparts in Cyber Monday, although Cyber Monday is still the largest batch size. Mobile Black Friday's volume rose 42 percent year-on-year. That's not all. Braintree, bought by PayPal five years ago, has said it has handled more than $ 500 billion in deals since then. Just three years ago, Braintree made $ 50 billion in payments.
# 9: With pleasure
Let's be honest: Until recently, payment was normal, not fun. No one likes handing over hard earned money to other people, not really, no matter what the purchase. But this is changing in this era of mobile and digital commerce. Because connected devices can make the buying experience more enjoyable for the consumer – assuming that the user interface is not counterintuitive and stylists and traders put serious ideas into the customer's experience. There was an increase of over 13% in the number of consumers who told PYMNTS that they used connected devices to pay for things they enjoyed, rising from 47% last year to 60%.
No. 10: With contactless cards
It is okay to doubt the adoption of the card without contact in the United States, given the years of promise that do not live up to reality. But this year, Visa and others have made comments that consumers in the United States are finally ready to take advantage of untouched transactions. Low card issuance costs, increased consumer demand and speed are among the factors behind it. In fact, PYMNTS found that 26 percent of consumers expressed interest in using calling cards in actual stores. Of these consumers, 84% see grocery as the dominant state of employment.
# 11: No cash
Make no mistake: people are already moving away from coins and bills, and they do so quickly. A large part of the reason is the increase in digital communications and the Internet – 36 per cent of consumers have six or more connected devices, hardly an optimistic data point of criticism, and not when there are many other relatively easy and easy ways to pay via mobile and the Internet. They also mean that traders and payment providers continue to work hard to meet consumer demand for digital payments (often not only payments but also payment experiences, which can not be cash). In fact, consumers are eager to keep away from cash, with 77 per cent wanting to use non-contact payments at petrol stations. Digital payments continue to succeed everywhere. More than half of consumers used connected devices to make purchases in seven of the 13 categories that were queried: 28% said they bought clothes and accessories, and 20% said they bought groceries. Sure, consumers carry cash money: half of them carry between $ 10 and $ 15 in their wallets. But cash is largely reserved – 39 percent of consumers said so – and purchases from smaller merchants who do not accept cards. But with the increasing proliferation of relatively low-cost POS systems, even for smaller traders, this does not seem to be a bright future for cash.
# 12: With increasing caution
No one should tell readers at PYMNYTS that consumers – lawmakers, regulatory bodies and the media – are very concerned about security and privacy over the Internet and that 2019 will almost certainly make more efforts to draft more laws to address these problems. When it comes to how people pay, 79% of consumers expressed their concerns about data security when using connected devices to enable payment, an increase of 11 percentage points. Some 78 per cent expressed concern about the privacy of their data. This means that traders, financial institutions and payment providers who can deal with these concerns while providing relatively frictionless transactions will gain advantage.
Next year will bring new participants to this list – new trends and experiences. But these many ways to pay provide a strong look at what 2019 has to offer.