New Paysafe study reveals retail cash acceptance trends
- A new Paysafe study has found that most businesses are not giving up on cash, despite the rise in contactless payments.
- This includes how online merchants place an increased emphasis on offering a variety of payment options at checkout.
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Paysafe has published research which shows how companies in Austria, Bulgaria, Canada, Germany, Italy, the UK and the US have changed or plan to adapt their retail strategies following of the crisis, as well as in-store sentiment and online payment processes and technologies.
Paysafe’s report includes three key points that demonstrate pandemic trends for retailers:
- Despite the substantial increase in contactless paymentsmost retailers don’t plan to shy away from cash. Eighty-three percent of businesses said they would accept contactless payments, with 62% of those not planning to do so at some point. And although nearly half of businesses have stopped accepting cash for some time during the pandemic, new payment methods are likely to complement them, rather than replace them: 6 in 10 sellers who currently don’t take cash cash say they plan to accept it again after the pandemic. Recent research showing that the coronavirus can live on cash for long periods of time may have contributed to the decline of cash and the increase in the use of contactless payments during the pandemic.
- Businesses place increased importance on online payment options as e-commerce takes off. Sixty percent of businesses agree that it’s more important than ever to offer a variety of payment options, especially as shoppers have turned more to digital payment options. As e-commerce has exploded, 88% of businesses said they introduced a new payment option during the pandemic, especially for online payments, including installment payments, cryptocurrencies and especially digital wallets.
- However, the majority of businesses report facing significant challenges with fraud and cart abandonment. More than half of companies surveyed agreed that increased fraud has been one of the biggest concerns during the pandemic, especially as malicious actors proliferate. To mitigate risk, companies have likely added security measures, but this could increase friction at checkout, leading to increased cart abandonment, which 73% of companies surveyed said was a problem in the marketplace. Paysafe survey.
Payment providers that support retailers should seek to improve
offers and process. The pandemic could be the perfect time for vendors to build relationships with merchants looking to digitize and roll out new digital payment offerings, especially when it comes to e-commerce.
However, to establish these relationships, payment providers will need to ensure that appropriate security measures, such as the integration of fraud protection solutions like the one recently developed by payment fintech Rapyd, are in place to mitigate the risk of fraud while limiting friction at the consumer checkout.
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