Financial services customers are increasingly moving towards digital payments in a variety of contexts, according to a new survey.
A US Bank poll of 300 finance leaders from different sectors showed that customers are moving towards digital payments at an accelerated rate.
In two years’, respondents predicted, customers’ preferred methods would be contactless card payments and digital wallets, overtaking physical cards and cash.
US Bank said the primary reasons for switching to digital payments were related to “convenience, flexibility and speed” — but varied by sector.
“Meeting customer demands for greater convenience and ease of payment usually translates into faster payment, which can make a significant contribution to an organization’s financial results,” US Bank’s report stated.
“For example, according to 70% of respondents from the restaurant sector, the ability to order and pay quickly influences a customer’s choice of restaurant. Quicker bill settlement also means that an establishment can turn tables faster, which should translate into more customers and additional revenue.”
Approximately half of respondents in each of the five sectors covered by the research — retail, healthcare, restaurants, lodging, and state and local government — said they were expanding the digital payment options available to customers.
Respondents from the retail, healthcare and restaurant sectors all ranked the adoption of real-time payments (RTP) as their top priority.
Quoted in the report, Chirag Shah, chief financial officer at Nature’s Bakery, said: “RTP is a clear opportunity for us in the longer term. We need to thoroughly evaluate our processes and systems to determine how to implement RTP.”
However, ensuring security of digital options remains a priority for finance leaders. More than half (59%) reported having to delay or cancel a “payments transformation project” because of concerns about cybersecurity or fraud.