Paysafe’s Lost in Transaction: Payment Trends 2018 unveils some interesting data about consumer payment behavior in the UK, US, Canada, Germany and Austria. Polling 5,056 adults, the data clearly shows people’s trust in cash remains high in comparison to alternative payments, citing concerns about data security and privacy as the main inhibitors. Indeed, 87% of respondents admitted to using cash in the past month. More striking are the visits to the ATM, which are up 8 percentage points compared to 2017 (83% in 2018 versus 75% in 2017). Of the people surveyed, 41% clearly stated their lack of interest for alternative payments.
Of all payments, contactless is gaining ground thanks to its convenience. In the UK – where contactless is used by 54% of respondents compared to a meager 3% in the US – 62% stated that they carry less cash (£21 in 2018 compared to £33 in 2017).
The greatest barrier to alternative payments is fear of fraud, which worries 50% of respondents. Forty-eight percent also cited data usage as an issue. Voice-activated systems are of even greater concern for consumers (65%) as well as fears of being overcharged (63%).
Britons, Germans and Austrians are those that visit ATMs most frequently (89%, 88% and 93% respectively) compared to their North American counterparts (69% and 77% respectively), but the US is still at the top of the list for using checks (56% compared to 38% and 34% in Germany and Austria respectively).
In regards to online shopping, Germans and Austrians prefer settling their bills via an invoice instead of using online payments (49% and 55% respectively) as they deem it safer. Although still not very common elsewhere, merchants are beginning to offer this payment method in the US and the UK as well. Today, only 5% of consumers in the UK and 4% in the US pay by invoice, but it’s gaining ground.
As alternative payments usage grows, consumers continue to enjoy cold hard cash in their wallets, clearly using both depending on the situation. Speaking for RetailCustomerExperience.com, Paysafe Group Chief Marketing Officer Oscar Nieboer said, “Despite the apparent benefits of low-friction payment technologies, these findings suggest many consumers aren’t ready to lose visibility of the payment process.”