Debit cards dominate POS marketplace: despite the widespread availability of new forms of digital payment, debit cards are used by more consumers than any other form of payment at the point-of-sale, with 78% of consumers indicating that they use debit cards for purchases. Debit cards are followed by cash (74%), credit cards (66%), digital wallets (36%), gift cards (33%), BNPL (28%), merchant apps (20%), checks (19%), prepaid cards (14%), pay by bank (7%), and cryptocurrency (3%).
A typical consumer uses multiple payment options in different scenarios: on average, consumers use 4.1 different payment methods, and the reasons given for each vary. These reasons could be ease of use or the perception of social status associated with different forms of payment.
More than half of consumers used non-traditional payment methods in the past 90 days: a majority (55%) of consumers say they have been using newer forms of digital payment methods, such as digital wallets, BNPL, merchant apps, and even cryptocurrency. The most frequently used of these are digital wallets (36%) and BNPL (28%).
Distinct consumer segments: based on patterns of consumer behaviour and customer satisfaction with the multiple forms of POS payment methods, J.D. Power has identified six distinct consumer personas that POS payment brands can use to segment the market and target their offerings. These personas are experimenters, borrowers, rewards optimisers, security seekers, budgeters, and minimalists.
Financial health influences behaviour: J.D. Power measured the financial health of consumers since 2020 and embedded those measurements into the Customer POS Payment Program. The results validate the influence consumer financial health has on POS decision-making and indicate how behaviours are likely to change with economic conditions.
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