Customer payment preferences have changed as we adapt to a new financial reality. In the latest Carat Insights finding we analyzed over $3 trillion in payments data, combined with a consumer survey of 2,200 Americans to understand how and why payment methods have changed, from the start of the pandemic in Q1 2020 to today in Q3 2021.
We examined three essential questions to understand customer behavior, describe the key takeaways, and detail the actions merchants can take to improve their business.
The pandemic has shifted the way customers pay. Our data reveals that debit continues to widen its lead as the #1 online payment method.
Analyzing a large range of customers, from Gen Z to baby boomers, reveals that demographics are key to understanding why certain segments prefer debit or credit.
Customers now have a variety of options when paying for goods and services. We deep dive into why customers are choosing Buy Now Pay Later (BNPL) installment options as a strong alternative to debit and credit.
To adapt to changing customer preferences and payment options, merchants can take the following actions:
Source: Carat Insights Report and Fiserv data