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Consumers’ migration to using contactlesspayment methods more often for their speed and convenience was only accelerated during the onset of the pandemic last year. It is easy to see why contactlesspayments are growing in a time of social distancing and touchless safeguards to prevent spreading the virus.
The coronavirus pandemic winds on, and while it seems like it’s been forever, when — and not if — we emerge from all this, consumer spending will be altered. Even grocery spending growth slowed to 25 percent on credit cards and 10 percent for debit cards, which gives a nod to the fact that consumers are likely “fully stocked up.”
Might consumers be ready for a new way to pay? In an interview with PYMNTS, Jeremiah Lotz, managing vice president of Digital Experience and Payment Products at PSCU , said the timing is right for the shift to contactless. The Consumer Perspective. Consumers are also comfortable with their plastic cards,” he said.
Consumers who previously paid for purchases by swiping or inserting their cards at in-store point-of-sale (POS) terminals are now turning to contactless cards and online shopping to safely and easily obtain needed goods. These two forces appear to be driving an increase in consumers’ use of touch-free debit payment options.
In today’s top digital-first banking news, Singapore tech startup Sea has reportedly bought Indonesia’s PT Bank Kesejahteraan Ekonomi (Bank BKE), while creditunionserviceorganization (CUSO) PSCU has lengthened its payment processing collaboration with Fiserv. Singapore Tech Startup Sea Buys Indonesian Bank BKE.
Paymentscreditunion PSCU is prepared to handle what they predict will be a rush in 2020 to adopt contactless cards, the company said in a press release on Wednesday (Nov. In 2020, PSCU anticipates distribution of more than three million new contactless cards to 100-plus creditunions.
The continued pivot toward digital banking and mobile devices substituting for in-person visits to branches is spurring financial institutions (FIs) to reconsider how they deliver new products and services – and what their consumers really need right now.
PYMNTS’ latest Next-Gen Debit Tracker® done in collaboration with PULSE , a Discover company, delves into debit trends like that, exploring options that merchants and their payments tech partners are using to keeping volume up as the economy reopens. It may be most prevalent in grocery payments now, as consumers adjust buying behaviors.
A transformation toward contactlesspayments is underway at the nation’s creditunions as the public shuns cash and even physical cards to lower infection risks with COVID-19. This change in consumer behavior is expected to remain even after vaccines are more widely distributed.
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