r/fintech – If consumers welcome new payment options, why are they slow to adopt them?

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It seems we tend to be overwhelmed by too many options, or stifled by ”choice overload”.

As evidence of this, in the last six months, just three instore payment methods have dominated among respondents – cash (69%), chip and pin (65%) and contactless (57%).

For making online payments, the two favored methods were entering card details (42%) or using PayPal (48%). It’s not necessarily irrational to want more options available, this is a risk-free arrangement for the consumer. However, juggling many different ways to pay, in reality, isn’t always efficient, and may be too much.

Secondly, shifting consumer behavior takes time. People value convenience and security when managing their money, so the methods that prevail will be those offering both efficiency and trust.

Small in-store payments are driven by convenience (40% choose their preferred payment method because it is quick, and 23% because it is easy). For higher ticket items, security is more influential. For medium and large expenses, 34% and 45% respectively say their payment preference was selected because it is secure. Online, security outweighs convenience across all payment amounts.

Originally post on LinkedIn

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