In-Store Holiday Shoppers Enjoy Various Ways To Pay

This holiday season, people are wondering if it’s easier to swipe, or not to swipe. Maybe it’s time to try tapping. Are they comfortable with the dip? What about the wave? No, this has nothing to do with dancing at the annual holiday party. Consumers have more choices than ever when it comes to paying for holiday shopping.

Will they wave a mobile device in front of a scanner or open their wallets to pay the old fashioned way? A recent Bankrate survey reveals how Americans plan to pay for most of their holiday gifts. Let’s take a look at what they found.

Cash – While it can be lost or stolen—at the carrier’s risk—cash remains king. It’s the payment type of choice for the largest number of survey respondents: 39%. Cash is straightforward, accepted by nearly every vendor, and carries built-in spending control (they can’t spend what they don’t have!).

Debit cards – The second most popular method of payment, chosen by 31% of respondents, debit cards offer cash-free convenience without the ability to overspend. And debit cards are of particular interest to Millennials, who tend not to carry other forms of plastic in their wallets. Learn more in Millennials: How They Pay Today.

Credit cards – Twenty-two percent (22%) of survey participants plan to use credit cards for the majority of their purchases this holiday season. These consumers either don’t mind racking up some debt or they’re getting rewards such as cash or special manufacturer warranties for using their cards. Or, they simply prefer the added protection credit cards provide.

Then again, one can never be too careful at the register. A particularly dangerous strain of malware, ModPOS, is expected to infect point of sale systems, making shoppers wary of most any non-cash payments. Strip cards tend to be the most fraud-attracting, but even purchases made with more highly secured EMV, or “chip,” cards are vulnerable if transactions at ModPOS-infected registers are unencrypted.

Checks
Favored by only 3% of respondents, checkbooks aren’t something retailers can expect to see at the register too often.

Mobile payments

For as much attention as mobile payments have garnered, a mere 14% of Bankrate survey participants say they’ll use the emerging technology to make holiday purchases. (And to no surprise, 19% Millennials indicate they will use a mobile payment service in store over the holidays.) Why do 84% of smartphone users say they won’t use a mobile wallet app to make an in-store purchase this holiday season?

• Not secure enough – 36%
• Other payment methods are more convenient – 31%
• Don’t know how to make one – 12%
• Don’t own a phone that allows them – 11%
• Favorite stores don’t accept them – 3%
• Other/don’t know – 7%

Mobile payments are expected to grow in popularity as more consumers see the value in using devices at the register. For many, there’s not necessarily an incentive to use them. On the other hand, mobile payments made online are expected to rise this holiday season. According to a GPShopper survey, 22% of consumers will purchase products through apps and 21% will purchase products on mobile websites. What’s more, 54% of consumers will use their mobile devices to research products and 46% will use them to compare prices while they are in stores.

Most retailers will experience an assortment of payment methods at their registers—and the mix is bound to change from year to year. Whether they see more waves or dips, swipes or taps, customers will be shopping…to the tune of their preference.