By Rob Starr, Big4.com Content Manager.
Matthew Friend, managing director and head of Accenture Payment Services in North America, discusses the findings that include expectations that cash transactions will decline by 12 percentage points by 2020.
According to the recent survey, how are digital payment technologies maturing?
Advancements in payments and mobile technology have resulted in new payment form factors, functionalities and interfaces. This has resulted in diminishing barriers to entry
within the payments landscape while driving new product innovation.
What groups are driving the spike in usage and why?
The digital revolution, driven by consumer demand, is transforming the payments industry. Our survey shows that millennials and high-income consumers are driving adoption of digital payments, but we are still far from ubiquitous use. It is not surprising that these two groups are driving adoption, as millennials have grown up with and frequently use digital technologies, and high-income consumers typically have access to the latest technological developments.
What can be done to make digital payment technologies more attractive?
According to the survey, consumers who currently use their smartphones to make payments would do so more frequently, if they had the ability to scan a product for purchase immediately (71 percent), eliminating the requirement for check out; use their phone to track receipts (69 percent); receive valued customer treatment, such as a separate line to speed up payment (67 percent); and scan a product and learn more about it, such as customer reviews, comparable products or retailer price comparisons (66 percent).
For those consumers who do not currently use smartphones to make payments, they would consider doing so, if they were offered rewards points (54 percent), discount pricing based on past usage (53 percent), and if the payment device received and stored all receipts in a secure database and seamless tracked spending habits (52 percent).
What are the other takeaways from the report?
Digital currencies (electronically created or stored) are still in their infancy; however, our survey indicates that respondents expect that using digital currencies as a form of payment will experience the biggest boost from today to 2020.
Traditional payment instruments are expected to decline slightly; however, emerging payment instruments are supplements, not substitutions for cash.
What’s in the future?
Consumers are changing the way they make payments and expect to use digital payment platforms more often in 2020. Traditional banks and network card providers are best positioned to provide the security and privacy assurances that consumers require to more readily adopt digital payments. Financial institutions will need to upgrade their middle- and back-office legacy systems in order to support customer demand for faster, real-time digital payments.