Consumers to use various contactless payments options for holiday shopping

A Strawhecker Group (TSG) and Electronic Transactions Association (ETA) report has shown consumers are using different types of payments options as they attempt to shop safely, both in store and online, this holiday season.

For in-store purchases, over 72% of consumers will use electronic payments as their first payment method choice, which includes traditional credit/debit cards, contactless cards, and digital wallets as the top methods. For online purchases, traditional credit/debit cards were cited as consumer's number one choice, followed by one-click payment options, and digital wallets.

Consumers are embracing methods that allow them to pay for purchases online quickly and securely. According to survey results, 81% of consumers have used 1-click payment methods, with 37% stating they use these services frequently. The service allows consumers to sign-up once to access their saved cards and then pay securely for purchases across retailers with one click.

Sixty-one percent of consumers that have used contactless card payments reported they had a positive impression. Many consumers have also tried emerging payment methods like buy online pick-up in-store and curbside pick-up (27%), digital wallets (25%), and delivery services for gifts (27%).

These finding are consistent with TSG's Acquiring Industry Metrics (AIM) platform, which shows a 9% increase in consumer spending using credit/debit cards from February 1 to November 1, 2020. Since the start of the COVID-19 outbreak in the US, consumer spending on credit/debit cards has increased 32% in both the grocery and retail store segments. Certain segments of retail, including sporting goods stores, bicycle shops, sports apparel stores, and home supply stores, have experienced increases in consumer spending on credit/debit cards of over 30% from before COVID-19 to present.

Between November 9 and November 11, 2020, TSG and the ETA surveyed 961 consumers in the US, with the goal of understanding payment method preferences and spending trends this holiday season. All results are from the perspective of the consumer. The survey represents consumers across various US regions and industries.