According to a Mastercard study that was conducted in 15 markets, consumers are adopting new payment habits at an accelerated pace. They are moving away from cash and choosing contact-free and digital payment experiences – and they don't expect to go back according to that study. E-commerce has also surged, with Mastercard's SpendingPulse reporting record growth rates globally as consumers shop online.
 
This study has shown two notable trends in payment behavior change:

  • In-store, a move away from cash
    • According to a Mastercard survey launched April 27, almost seven in 10 consumers said the move to digital payment would be permanent, and nearly half of consumers plan to use cashless, even after the pandemic subsides
  • Steep increase in e-commerce
    • Shown in Mastercard's newly released Recovery insights: Shift to Digital report, e-commerce has skyrocketed. The brand's SpendingPulse has shown that U.S. e-commerce spending grew by 93 percent year-over-year in May. In April and May, as a share of total retail sales, was 33 percent in the United Kingdom
 
"While no one could have predicted the state of the world we're in today, it has reinforced the necessity for us to continue evolving the consumer payment experience to meet the consumer wherever they are," says Jorn Lambert, Executive Vice President, Digital Solutions, in a Mastercard press release. "We’ve been focused on building our Digital-First capabilities for years, which have enabled this accelerated shift to digital payments – it’s unlikely consumers will revert to old payment habits.”
 
Mastercard is using the technology at its disposal to adjust to these new buying habits in multiple ways:
  • Using non-sensitive data to increase security
    • Mastercard Digital Enablement Services turns card numbers into tokens that become useless to fraudsters and eliminates having the frustration of manually updating card information
  • One-click payments to speed checkout
    • Click to Pay uses tokenization to secure their card credentials. Enrollment has been made simple for consumers who can now push their card credentials from their banking mobile app to merchants and Click to Pay
  • Digital First powers consumer choice
    • The brand has been focused on designing digital products from the ground up, with a physical card optional
 
"Amidst an incredibly challenging time for individuals, for communities and for businesses, we’re seeing sparks of change brought upon by the growth of digitally-savvy consumers and businesses embracing technology that will enable a swifter, more secure future,” Lambert added in the same news release.
 
 

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