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Contactless payments apparently have sway with U.S. consumers. Fifty-four percent of them would switch to a new store that offers contactless payments, according to a global survey by Visa Inc. measuring changes in payments habits in the face of the Covid-19 pandemic.
The effects of the pandemic, and the resulting urge of many consumers to limit their contact with point-of-sale devices and cashiers, also means 35% are using cash less often. Younger consumers, perhaps, are the most motivated. Seventy-two percent of Millennials are likely to switch, compared to 56% of Generation X consumers, and 31% of Baby Boomers.
Indeed, many small businesses have tried different ways to cope with all the changes. Overall (the survey also includes data from Brazil, Canada, Germany, Hong Kong, Ireland, Singapore, and the United Arab Emirates), 20% of merchants adopted contactless payments in recent months. Another 33% say they either have accepted less cash or stopped accepting it completely since the Covid-19 onset. The survey canvassed 2,000 small businesses and 4,500 consumers.
Within the United States, 60% of U.S. small and medium-size businesses have made some change to adjust to the pandemic. Twenty-three percent used targeted advertising on social media, 20% adopted alternative payments, and 18% applied for a business loan.
Top concerns for these merchants are revenue levels and attracting consumers, Visa says, with 52% of them citing revenue declines and 46% citing attracting new customers.
