UK consumers and businesses are poles apart on the adoption of new and innovative payments technologies, according to Sage Pay’s 2015 Payments Landscape Report.
Consumers seek innovative payment methods
More than 1 in 4 consumers say that they are more likely to shop somewhere which offers a greater range of, or more innovative, payments methods. The report also found that almost a quarter (22%) of consumers say they are likely to adopt contactless payments within the next year, indicating that the use of innovative payments methods amongst consumers looks set to increase.
However, businesses appear to disagree with their customers, with a third of businesses polled stating that they do not believe offering a greater range would encourage customer loyalty.
Businesses also demonstrated an alarming reluctance to invest in the innovative payment types consumers are calling for, with nearly half (45%) of businesses stating payments innovation is not a priority for them in 2015.
This is all the more surprising given the research found the majority of businesses agreed that the customer is king, with 59% stating that a customer-centric attitude is very important.
More businesses now accept contactless payment
The research does show that there has been a slight increase in the number of businesses which now accept contactless payments compared to last year however, with almost a third surveyed (31%) now able to facilitate contactless payments, compared to just 26% in 2014.
Those businesses will be well placed to cope with the continuing downward spiral of cash, with cashless payments set to rise to 19.9 billion by the end of 2015, overtaking cash payments (falling to 19 billion) for the very first time. Online payments and debit/credit cards are set to become the two most preferred forms of payment amongst consumers.
Decline of cash
Looking into the future, Sage Pay’s report uncovered that cash is ranked only 5th by businesses of payment types they believe will be most popular in 2020, underlining the ever-reducing importance of cash on a not-so-long journey into obscurity.
“Our research makes it clear that the UK’s consumers have taken an affinity to the convenience and speed of cashless payment types,” said Sean Wilson, Managing Director of Sage Pay UK. “There are huge opportunities for businesses nationwide to take advantage of this but few are capitalising on them.”
“Despite businesses agreeing that cash is dying, they aren’t reacting to the changing payments landscape quickly enough and, as a result, aren’t able to meet their customers’ demands. This report clearly shows that customers are ready and willing to be the guiding star, but only if companies are prepared – and able – to listen. Now is not the time for businesses to be treading water on payments technology – they need to invest to ensure they don’t follow outdated cash payments down the road to obscurity.”
Other key report findings
- 70% of businesses polled believe that payments technology can improve the customer’s experience
- A significant increase this year of those who believe that UK businesses are lagging behind other countries in terms of payments innovations
- Despite the emergence of Apple Pay signalling an inflection point in the payments industry, the research shows that the majority of consumers surveyed (61%) said they would not consider using it
- Just 5% of consumers said they would consider Apple Pay when it comes to the UK
- Consumers expect a seamless payment experience with £1 in every £4 spent online and 37% of online sales being made on a mobile device
- 43% of businesses said their online and offline channels are already integrated and a fifth of those who have not integrated say they are planning to do so in the next six months
Find out more and download the report here
About Sage Pay
Sage Pay is the UKI’s leading independent payment service provider (PSP) and is one of the most trusted payment brands. Every year Sage Pay processes billions of pounds worth of secure payments for its 50,000+ customers and makes the process of accepting payments online, over the phone, or in person simpler, faster, safer and more profitable for businesses.
Sage Pay is a subsidiary of FTSE 100 business management software and services company The Sage Group plc.
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