In the ever-evolving landscape of retail, the methods consumers use to pay for their in-store purchases are rapidly changing, reflecting broader shifts in technology and consumer preferences. There is a diverse array of payment options now available, ranging from traditional cash and credit cards to emerging digital wallets and contactless technologies.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: Global A2A Retail Payment Systems: Lessons for the U.S.
Preferred Payment Methods for In-Store Purchases
- 39% prefer swiped/chip card
- 24% prefer contactless card
- 19% prefer cash
- 7% prefer mobile wallet
About Report
The recent launch of FedNow—the Federal Reserve Bank’s instant payment service—seems certain to be a game-changer in payments. The ability of financial institutions to offer their customers 24/7/365 access to transactions that are initiated, cleared, and settled in seconds will spur the development of new payment methods, deliver new use cases for older methods, and change consumer expectations and behaviors.
One of those older methods—account-to-account (A2A) transfers—might be made new again in a world of ubiquitous instant payments. A2A payments, traditionally the province of sellers and suppliers, could see a renaissance in merchant sales now that the power to engage them is being pushed out to a wider array of payers and payees. This Javelin Strategy & Research report looks at A2A payments through the lens of successful initiatives in India and Brazil, detailing how their breakthroughs could be mimicked in the United States—and how various stumbling blocks could hinder such efforts.
