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BizReport : Ecommerce archives : May 22, 2015

Consumers keen to use new payment technology but businesses slow to adopt

Shoppers are keen to use new payment technology but, according to a new report from Sage Pay, businesses are being slow to adopt them.

by Helen Leggatt

The Sage Pay 2015 Payments Landscape Report found that 22% of shoppers would be more likely to shop with a business that offers a choice of payment methods including cashless payments, online payments and credit/debit cards.

However, while 70% of businesses agree that payment technology is something that would improve the customer experience, just 45% of the 1,000 business decision makers surveyed said such technology was a priority for them in 2015.

Cash is fast becoming a redundant payment method. By 2020, businesses predict that cash will be the fifth most popular payment method. Meanwhile, the report predicts that cashless payments will rise to 19.9 billion transactions by the end of 2015, overtaking cash payments.

Almost a quarter (22%) of the 1,000 consumers surveyed for the report said they would probably begin to use cashless payments within the next 12 months; 31% of businesses say they are currently equipped to accept this payment type.

"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," said Sean Wilson, managing director of Sage Pay UK.

"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the time for businesses to be treading water on payments technology - they need to invest to ensure they don't follow outdated cash payments down the road to obscurity."

The Payments Council in the UK released new figures this week that show the total number of cash payments made by consumers, businesses and financial organisations in the UK fell to 48% last year (from 52% in 2013).

This is the first time that 'non-cash' payments have exceeded those made with cash.

Image via Shutterstock

Tags: cash, payment technology, retail, technology

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