Credit Card Issuers Must Target Digital Payment Apps, Deloitte Reports

Credit Card Issuers Must Target Digital Payment Apps, Deloitte Reports
29.10.2019 09:26 am

Credit Card Issuers Must Target Digital Payment Apps, Deloitte Reports

Payments

Deloitte's Center for Financial Services today reports that consumers are looking toward the broader ‘ecosystem’ to simplify their payments experience as innovative payment instruments become more prevalent.

Nearly half of US consumers surveyed expect to use credit cards more than any other payment instrument in the next two years, Deloitte finds. This is primarily driven by the attractive rewards, discounts, and cashbacks that accompany credit card spending.

Despite this, consumer loyalty toward credit card usage appears fragile, with two-thirds (approx. 66%) of consumers surveyed likely to switch alternative payment instruments if they receive similar, credit-card-type rewards in return.

Credit cards with device-based wallets such as Samsung Pay or Apply Pay are currently the most popular option for payments, and as they only comprise around 40% of transactions, Deloitte argues that issuers should target this area to capitalise on the trend and increase market share.

Interestingly, the report found that a majority of respondents were interested in using a financial superstore app to streamline their day-to-day transaction activity. Such an app would allow consumers to access financial products such as a personal loan from the same bank or other institutions, buy products and services, and manage personal finances from a single app.

More than three in four respondents believe banks or credit card issuers are best positioned to deliver such a product and would be well served by achieving first-mover advantage.

Related News

Mastercard enables Contactless limit raise across 29 countries; and champions permanent increase

Today Mastercard announced its commitment to enabling the increase in contactless payment limits across... Read more »

TransUnion Research Quantifies How Social Distancing is Changing Shopping Patterns

TransUnion (NYSE: TRU) today released new research that quantifies the spike in digital commerce since social distancing became widespread globally. The company found a 23%... Read more »

Wirecard expands presence in Mexico

Wirecard, the global innovation leader for digital financial technology, and Banca Afirme, a Mexican financial institution with a nationwide presence, are collaborating to... Read more »

Barclaycard to enable UK retailers to accept new £45 Contactless Limit

Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, will be rolling out the deployment of the new £45 contactless limit across UK retailers... Read more »

Digital Payments in Europe to Surpass $802bn Transaction Value This Year

The increasing number of mobile phone users and the massive growth of eCommerce have led to the rapid adoption of digital payments all over the world. Cashless payments have... Read more »

SumUp launches free Mobile Payments and Invoicing across Europe to help consumers pay safely and remotely via smartphone

As Europe moves into COVID-19 lockdown - affecting small businesses and retailers everywhere - SumUp, the London-headquartered fintech and leading provider of digital payments... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel