James Murphy’s Post

Our latest SpendTrend report shows that the retail sector drove overall card spending growth. Discover more of our findings and their implications in Payments Dive: https://fisv.co/3P1slWA

As economic conditions evolve, a notable trend has materialized: Younger and low-income consumers are increasingly favoring cash and digital wallets over credit cards. Debit card usage via digital wallets for grocery purchases has doubled in the past year, showcasing a strategic response to inflationary pressures and the diverse ways different demographics are managing today's financial challenges. Recent data indicates a slight decline in credit card payments in certain categories, while cash expenditure has risen by 34% for groceries and 23% for retail, underscoring how consumers are grappling with economic uncertainties. Among younger demographics, digital wallet adoption has seen a significant uptick, with debit cards driving half of digital wallet transactions in grocery and retail settings. Moreover, cash transactions at restaurants have surged by 12% since 2023, with cash utilization among older, affluent consumers approaching 23% of spending in this sector. These shifts in payment behavior reflect the dynamic strategies individuals are employing to navigate the current economic landscape effectively. #debit #credit #cards #consumerbehaviour #consumerinsights #cash #young #incomegroup #banks #loyalty #grocery #fintech #fintechs #payment #payments #usa Arjun Vir Singh Akhil Rao Dr. Vivek Agrawal Sam Boboev Nitin Sahu Mohamed Roushdy, MBA Nazmur Rahim Ravi Pande Nilanjan Panda Sundar Narayanaswamy Javed Akkhtar 🇮🇳 Rajesh Rishi Nadine A. Jaafar Esmahan Hakkak Saleh ALhammad MEHDI S. Marwan Nader Sanchit Agarwal Sameer Syed Malih El Hage Ibrahim Faseeh Khan Nadeem Khan Hansel Barboza Anurag Sharma Dr. Ali Salim Al Shekaili Azarudeen Hussain Narendra Nandal Rakesh Verma Asheeta Regidi Ritu Prasad Monica Jasuja Ritu Verma Rahil Rizvi Ravi Gupta Ravi Sehgal Walter Pereira Shailly Dua Hiren Raghuvanshi Bino Abraham

With 2024 in full swing, South African consumers will increasingly be demanding choices when it comes to payment options this year. A determining factor is that shoppers want value from retailers, physical or online, when it comes to deciding where to spend their hard-earned money in this socio-economic environment. Rory Bosman, our Executive for Sales & Marketing shares nine key trends set to dominate the payments industry in 2024. https://lnkd.in/d9sZdKjS #PaymentTrends #Retail #2024 #Ecentric

There are two things Mastercard metrics will tell you: 1. The behaviors of affluent-skewed households ($100k+ housheold income). 2. The behaviors of households more dependent on credit. If credit balances weren’t going up, along with delinquencies and bank charge-offs, then this would be great news. Unfortuantely that’s not happening. What so many experts miss about consumer behavior is that we, consumers, are simply not responsible in aggregate. Our out of control spending ignited inflation (sorry, not sorry). The desire to keep up a recent lifestyle, despite rising prices, has dried up any savings we had generated over the past 3-4 years. Need more evidence? Leading up to 2008, banks and mortgage lenders undoubtedly used predatory lending to put people in situations they shouldn’t have been….but it was the (Adult) consumer that ultimately signed on the dotted line. Retail behavior was doing ok in 2007 too, without this level of inflation, but when the first bank failed in March of 2008, personal savings spiked over 4% by May, sucking out spending from the market. That’s what accelerated the downturn. We are generally short-term thinkers when it comes to finances…that’s why headlines are so impactful. This one isn’t great, to be honest. It could be a precursor to a slow Q1. #consumerbehavior #retail #creditcard

Hello my lovely LinkedIn network. We have today published our annual payments survey, which you can read in full here: https://lnkd.in/e9JrF-fi This survey is full of data on how consumers are interacting with payments in retail, as well as what our retailers are seeing in their various costs, and our recommendations for moving forwards. Big headlines… • cash is up for the first time since we began this survey. We saw cash rise from 15% of transactions to 19% of transactions, reflective of a return to shops post-covid as well as a desire to use cash for budgetary reasons in the cost of living crisis. • cost of cards is up yet again. 2021-2022 saw a 27% increase in scheme fees, whilst commercial cards shouldered a 36% increase in interchange fees. • good news for my APM colleagues, alternative payment methods (APM’s) are on a steady incline in popularity. We saw a rise from 2% to almost 5% of transactions; still a small percentage overall but it’s really positive to see the upward trajectory. Our recommendations: • Gov should consider how they will support retailers in continuing to accept cash as it becomes increasingly logistically challenging. • PSR should be ambitious in its interventions from the market reviews to put an end to unsubstantiated fee increases for merchants. • HM Treasury should conduct a full review of interchange fees and whether these are fit for purpose in the UK market. This should review the IFR cap, the scope of the IFR, and the impact interchange fees are having on innovation in the market. • The fee structure should be such that low value transactions are charged on a % basis whilst anything above a certain threshold should be on a flat fee, as there is no difference in cost to move £50 vs £500. We recommend this fee structure for open banking payments too. • We fully support the development of open banking payments, but think it’s imperative that we do not replicate existing structure of the card schemes.

Financial crime evolves alongside customer behavior. Failing to account for shifts in spending patterns, leaves institutions vulnerable to blind spots that criminals can exploit. Below are 5 key points from the last Consumer Payments Survey (CPS) conducted by RBA: ✔️Cash use is rapidly declining: Australians are using cash less and less, with the share of in-person transactions made with cash halving to 16% from 32% in 2019. ✔️Debit cards lead the way: Debit cards are now the most common payment method, accounting for half of all consumer payments. Credit cards also remain popular, making up another quarter. ✔️Contactless payments dominate: Over 80% of card transactions at point-of-sale were contactless, showing a strong preference for tap-and-go payments. ✔️Online shopping thrives: The share of online payments has increased significantly, reaching 18% of all transactions, compared to 12% in 2019. This reflects the rise of e-commerce and the impact of pandemic restrictions. ✔️Other payment methods see limited use: While "buy now, pay later" (BNPL) services are gaining traction, they still comprise only a small share of overall consumer payments. Cheque usage continues to decline as well. https://lnkd.in/gZ-5-KWw

🔍 Navigating Merchant Service Fee Changes? Here's a Must-Read! 💡 Did you know that a recent article revealed some eye-opening trends in business spending? According to the report, "33% of credit card holders across all demographics upped the share of their expenses paid using credit cards in the last six months, while just 15% reduced it." 📊 With both Visa and MasterCard gearing up for rate hikes, particularly aimed at online transactions, it's high time for businesses to take a closer look at their merchant service fees. Being proactive now could lead to significant long-term savings. As someone who's passionate about helping businesses thrive, I encourage you to consider reviewing your fee structure. Let's connect and discuss how you can strategically navigate these changes and ensure a resilient financial future. #MerchantServices #FinancialStrategy #BusinessGrowth #OnlinePayments #SavingsAhead

In GO Banking Rates, Justice Petersen writes "According to a 2022 survey from research company Statista, 55% of American consumers say the biggest reason they shop online is for a “straight to your door” delivery. Statista also found that, as of early 2023, 43% of consumers in America say they prefer to shop online rather than in person." To survive the current retail landscape of closing stores and changing customer habits retailers must come up with creative ways to engage the customer and keep them engaged. Lowering prices is a short term solution as pricing is too easily shopped. If customers can get the same lower prices and not have to venture out that's how they will naturally shop. Retailers must create positive and enticing in-store experiences which draws their customers into "needing" to physically visit them. However, that's just the beginning. once the "experience" bar is set, customers will continuously expect newer and better experiences. What was once "amazing" will quickly become "expected" and not so effective. The successful retailer must have the ability to continuously build on their efforts with newer and better opportunities for their customer. This is a prime opportunity for smaller retailers who have the ability to adapt and implement changes more quickly than their larger counterparts. The big question will be, will independent retailers recognize and act on the current landscapes opportunities or stick to doing business as they always have and hope that the storm(s) pass them by. We'll see.

🛍️💳 Exploring the Impact of #Buy #Now, #Pay #Later Services on #Retail: Helpful or Harmful? Join the conversation on the pros and cons of Buy Now, Pay Later (BNPL) services in retail! A recent article from RetailWire delves into the growing trend of BNPL options and examines their potential benefits and challenges for both retailers and consumers. Key points of discussion include: 1️⃣ Increased Conversion Rates: Explore how BNPL services can drive higher conversion rates by offering consumers flexible payment options at checkout. Learn how retailers can leverage BNPL to reduce cart abandonment and boost sales. 2️⃣ Financial Responsibility: Examine the potential risks associated with BNPL, such as encouraging impulse spending and leading to debt accumulation among consumers. Discover strategies for retailers to promote responsible spending and transparency in BNPL offerings. 3️⃣ Competitive Advantage: Consider how retailers can differentiate themselves in the market by integrating BNPL services into their payment options. Explore innovative approaches to leverage BNPL as a tool for enhancing customer loyalty and satisfaction. Read more ➡️ https://lnkd.in/efdNeNNE #RetailStrategy #PaymentInnovation #CustomerExperience #BNPL #RetailTrends #KIVALUE

Nearly 85% of consumers said they’d be interested in paying with points if the option was offered. That’s according to a new survey, which found that there’s been a significant increase in consumer interest compared to previous years. According to the research, which polled 1,000 U.S. consumers, many respondents said they’re willing to switch to credit cards for their enhanced pay with points benefits. In fact, 76% indicated a readiness to make the switch. Read more: https://ow.ly/OnE750QnVxC1 #payments #creditcards #rewards #points #loyaltyprograms