In today’s technology-driven world, the ability to make and accept payments quickly and securely is key to the success of any business. Taking advantage of the right payment technology can help entrepreneurs stay ahead of their competition and remain competitive in their industry. Savvy entrepreneurs understand the importance of having multiple payment options available to their customers, as well as incorporating technology into their payment process in order to reduce costs associated with transactions. By introducing technology into their existing payments system, companies can be sure they are offering an efficient experience that will keep both customers and vendors satisfied.
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Data for today’s episode is provided by Mercator Advisory Group’s Blog – Buyer PaymentsInsights – Payments Behavior: Looking at Buyers through the Lens of Segmentation
Consumer Payments Method Segmented by Technology Savviness:
- Tech savviness is driven by employment status, age, and to a lesser extent, income.
- Tech Forward individuals are more apt to use charge cards and reloadable prepaid cards, which is due to the predominance of younger adults in the segment.
- 64% of tech ‘laggards’ use credit cards and 53% of tech ‘laggards’ use debit cards – both leaders in the category.
- Tech forward consumers lead payment method activity in the Store Card, Charge Card, Open-loop Prepaid, and Closed-loop Prepaid segments.
- Unsurprisingly, the use of universal wallets and payment services like PayPal is highest among the Tech Forward consumers.
- 24% of tech ‘laggards’ trust cash the most for in-store payments, compared to 7% of tech forward consumers.
- 18% of tech forward consumers trust universal wallets like Apple Pay for in-store payments, compared to 1% of tech laggards.
About Blog
Mercator Advisory Group’s latest Primary Data report, Looking at Buyers through the Lens of Segmentation is based on the company’s 2020 Buyer PaymentsInsights Survey. The online survey of 3,002 U.S. adult consumers, which was conducted in February 2020, explores consumers’ experiences as they shop in-store, online, and via mixed channels. The survey was designed with the goal of defining and highlighting consumer expectations for optimal experiences with merchants.
This third report of three on the survey’s findings explores how using segmentation techniques can help companies refine their strategies by placing a focus on likely buyers or users. These segmentation approaches are designed to demonstrate different methods for dividing the population into targeted, preferred groups of buyers. The report looks at the increasing popularity of in-store ATMs.
Peter Reville, Director, Primary Research Services, Mercator Advisory Group, the author of this report comments, “Segmentation is not a new tool in a strategist’s toolkit, but we wanted to show examples of how it can be a powerful tool in understanding the American consumer. One segmentation lens we use is attitudinal – looking at how survey participants feel about technology in their lives. The second is more behavioral, and groups shoppers by how they use cash in their day-to-day shopping. ”
