Payment Preferences Have Changed This Year

contactless payment trends

Since the start of the pandemic, new and expanded technology has become a way to move through the world safely. And that means your credit union’s contactless payment solutions are probably here to stay.

Here are some of the ways payments have changed this year, and how those changes may look in the future.

Contactless Is Key

As of July 2020, the NAFCU reported a “259% year over year increase in contactless volume.”

Contactless transactions and operations are safer during this pandemic, but there’s no denying that many of these options are also more convenient for Americans, especially right now as they juggle remote work, online schooling with their children, and other COVID-related changes.

A study done recently by Mastercard shows that 46% of cardholders have moved their contactless cards to the Top-of-Wallet positions in their physical and digital wallets.

Online Shopping Is Preferred in 2020: Banking Trends Are Shifting, Too

This holiday season, 77% of online shoppers are planning to do more than half of their holiday shopping online. 

Credit unions often struggle to adopt the latest technology, but that will have to change as the future is becoming more and more digitally-based. Consumers, shoppers, and credit union members are increasingly trusting of online banking and payment technologies.

Some good news here for credit unions is that mobile payments are taking a backseat to contactless cards for the top payment method. Credit unions can work with this by increasing those contactless options with their credit and debit card offerings.

Moving Forward

These payment preferences may have been impacted by the protocols and changes COVID-19 has affected, but the trend toward digital and contactless transactions is here to stay. So what does that mean for your credit union?

It will be wise to plan on implementing and bolstering contactless card options – for debit and credit card options. This could include promoting these contactless options in everyday purchases, like grocery and pharmacy expenses, as well as highlighting the health and hygiene benefits of contactless payments.

74% of MasterCard customers state they will continue using contactless payments as a primary practice post-pandemic, according to a report in April of 2020. And these trends have only gotten more popular as the pandemic continues to impact the activities of daily life.

Upgrade Your Business-Facing Technology, Too

The customer-facing technology updates are only as good as their back-end support and infrastructure. IMS has a host of virtual private cloud and other tech services for credit unions. If you are interested in upgrading some of your technology with core hosting, virtual desktop, and disaster recovery tools, contact us today.

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