It’s important for businesses to allow consumers to utilize electronic cards as a form of payment at the point of sale – regardless of what type of cards they like to use.
A recent survey from the Auriemma Consulting Group revealed that many shoppers have complex feelings about when and where they like to use credit cards and debit cards, offering insight toward the types of credit card processing equipment that retailers and service providers should be installing – whether online or at brick-and-mortar store locations. Customers, contrary to popular belief, do not regard the many methods of online payment as being interchangeable.
Auriemma reported that almost 40 percent of consumers feel that debit cards help them manage their finances, while only 26 percent feel that credit cards allow them to effectively do so, for example. However, credit cards were ranked much higher by consumers when they were asked which cards they would make use of in case of emergency. The release indicates that many younger respondents had begun to see credit cards as a tool for large purchases they wish to pay off over extended periods of time, and prefer not to use them for everyday spending.
Matt Simester, Managing Director of the Payments Insights practice at ACG, even goes so far as to suggest that evolving consumer preferences may lead to major changes in the electronic payments sector.
“I could see products that are credit cards but behave like debit cards in some instance whose balance is repaid in full with an automatic deduction from the consumers’ checking account for certain items,” said Simester. “A more advanced variation might use credit card authorizations to reduce the available balance in a consumer’s checking account, ensuring that the funds in the checking account are likely to be available when the credit card cycles.”
Younger individuals may be making electronic payments more responsibly
Many businesses have found themselves making alterations to their point of sale – such as installing mobile credit card terminals – to appeal to younger shoppers. It seems these individuals may even be using their cards more responsibly than their older peers: a recent study from Arizona State University found that credit card holders between the ages of 18 and 25 were less likely to experience long-term delinquencies than their older counterparts. In fact, the report notes that an individual aged 40 to 44 is more than 10 percent more likely to experience a “serious” delinquency than an individual aged 19.