MINNEAPOLIS –Retail shoppers are saying they don’t just want but expect seamless self-service capabilities, flexible payment options, and accelerated e-commerce checkout according to a new survey of 1,000 U.S. retail shoppers.
The survey was conducted by Entrust.
“This survey reinforces that consumers have come to expect more integrated payment and banking experiences and the need for a digital-first, not digital only approach. People want the flexibility to choose how they interact with their banks and how they make payments,” said Tony Ball, SVP-general manager, instant issuance at Entrust. “Enabling simplified and seamless digital card controls, while also providing a variety of ways to make payments increases the likelihood of a bank’s card becoming top-of-wallet.”
As more consumers become accustomed to on-demand services in other aspects of their lives, they expect that their financial institution will deliver those experiences, the company said.
The Survey Findings
Among the survey findings:
- More than half of respondents said they choose to engage with their bank or credit union via a mobile application rather than at a branch or via the bank’s website.
- Approximately 85% of respondents indicated they prefer to use a card for in-person and online transactions that provides them the ability for digital self-service and card controls.
- 9 out of 10 respondents saw ‘ease of account’ opening as an important factor when choosing a bank or credit union.
- Nearly half of respondents prefer to open an account on a mobile device, with 26% choosing to open one online, and 27% in-branch.
Some ‘Gaps’
According to Entrust, while some financial institutions are building upon their capabilities in order to meet these expectations, there are “clear gaps” in current technologies.
“For example, of those that told us they use a third-party e-wallet like Apple Pay or Google Pay, 54% stated that they had to manually enter their payment card into an e-wallet,” Entrust reported. “Manual entry of card information is slow and can be frustrating to cardholders. Providing automated push provisioning to wallets is a great way to bring a more integrated experience that consumers crave.”
Entrust said it wasn’t surprising given the survey’s findings that there is a “dramatic preference for both digital and physical payment methods,” but for different use cases.
“Respondents indicated they prefer to use digital cards for e-commerce transactions, while still preferring physical tap-to-pay cards for in-person payments,” Entrust said of the findings. “This indicates that while consumers do prefer to go digital, they still want the flexibility to choose how they pay depending on the situation. It’s important for banks not to move the pendulum too far – a digital-first, not digital only approach is best.”
Additional Findings
Separately, Entrust noted it also asked survey respondents how they typically complete an e-commerce transaction.
“More than half of respondents (53%) indicated that they opt to either use the stored card on file or use an expedited checkout button for an easier checkout experience,” the company reported. “However, even though both methods are equally convenient, banks that provide the ability to use an expedited checkout button are providing an additional layer of security as the payment information becomes tokenized. With tokenization, card numbers are replaced by encrypted tokens, bringing more security to consumers when it comes to using a contactless card to pay (both digital and physical cards). Providing tokenization and token management capabilities can empower the cardholder with more security and self-care.”
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