The State of Payment Methods and Local Businesses

What is the current state of payment methods when it comes to local businesses? 

According to a report by Podium, 42.9% of U.S. internet users prefer to make purchases at local businesses using a credit card reader. Meanwhile, 18.4% of customers prefer to use cash as a form of payment. Text payments are at 11.1%, while services such as Apple Pay and Venmo were at 10.3% and 9.2% respectively. Other forms of payment methods pertain to completing transactions over the phone and reading credit card information out loud at 5.4% and 2.8%. 

It should be noted that the study was conducted in the context of the coronavirus (COVID-19) pandemic. While customers participated in social distancing measures by minimizing contact with others, the use of credit cards also saw an increase in popularity. Another study, this time conducted by YouGov, reflects this. 

The study found that when it came to ordering restaurant takeout, 51% of those surveyed said they used a credit card as their preferred method of payment. This is a significant increase when compared to the popularity of credit card usage in December 2019, which was at 30%. In terms of purchasing groceries, it was found that 46% of U.S. adults preferred to use their credits in April 2020 compared to December 2019, which was at 27%.

While credit card usage increased in usage, the same, however, cannot be said for debit cards and cash. For instance, while 42% of restaurant takeout customers used a debit card last year, the percentage decreased to 32% in April 2020. In addition, grocery shoppers went from 50% to 39% in terms of usage. As for cash payments, more adults used them last year compared to 2020 for both restaurant takeout and grocery purchases. 

A company such as Desjardins, for example, has already created an initiative that customers and businesses can leverage in order to increase sales and ensure the health and safety of their customers. 

On March 20, Desjardins increased its no-contact payment limit on their point of sale (POS) terminals. The increase was from $100 to $250, allowing grocery stores, pharmacies, and convenience stores to allow customers to make bigger purchases. 

“While many businesses have temporarily closed, those providing essential services are seeing a significant uptick in traffic,” the announcement read. “Desjardins hopes that this announcement will help shorten lines and greatly reduce physical interaction between customers and payment terminals, and customers and employees.”

Given this information, local businesses may do well in offering credit card payment methods to their customers. Such a method would not only aid in the mitigation of COVID-19, but also allow shoppers to conveniently make purchases without much hassle. 

Businesses can take advantage of the increased use of credit cards by consulting with a professional at Find Your Audience. A member of the team can be reached through either 647-479-0688 or hi@findyouraudience.online.

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