ST. PETERSBURG, Fla.–PSCU has released a new study, “Eye on Payments,” that surveyed credit union members and non-members about their payments preferences, highlights the ways consumers apply these needs and desires to their choice in payment methods, and further provides key information about the factors that influence consumers on a daily basis.
Through the research, PSCU said it set out to gain a better understanding of the factors that influence consumers when it comes to their choice and usage of different payments methods, how these factors may differ among different life stages and how credit unions can better meet these preferences and needs.
The company said it discovered that when making payments, consumers today are motivated by two primary needs: safety and convenience.
“Consumers are faced with purchasing decisions every day,” said Tom Pierce, chief marketing officer with PSCU. “As the payments landscape continues to evolve at a rapid speed, it is more essential than ever for credit unions and other financial institutions to effectively manage innovation and security to ensure all of their products, services and offerings are meeting consumer expectations.
Among the Findings
According to PSCU, findings from the study include:
- According to the survey, 13% of credit union members have been a victim of card fraud and 4% have had their identity stolen in the last year alone. Similarly, 11% of non-credit union members were a victim of card fraud and 4% also had their identities stolen during the same time period.
- While one third of respondents currently use digital payment methods, 38% cited concerns about security as a reason for not using digital payments. “With improved fraud detection tools now available and consumer education about the value of these tools, financial institutions can help mitigate any hesitation consumers may have when it comes to digital payments and maximize opportunities related to mobile wallets,” PSCU said.
- Nearly three-fourths of people agree that they make decisions about how they will pay for something primarily based upon which option is the most secure. Convenience and comfort are just as important as safety concerns for those choosing to use credit and debit cards.
- Baby Boomers prefer to use a credit card more than any other age group. They are also more likely to use a credit card over cash, which breaks the stereotype that Boomers are set in their older ways.
- Generation Z is already comfortable with conducting their banking and making transactions online. “However, the survey found that this group is more interested in having a financial adviser at their fingertips – more so, even, than Millennials,” PSCU said. “This generation is paving the way for a future where digital payments and quality, personal assistance will merge.”
- Debit is the most often used payment method among credit union members when making in-store purchases. “Debit cards have the potential to serve as a replacement payment method for cash users, particularly at routine retail locations,” according to PSCU’s analysis. “Paying with a debit card is both convenient and allows for better budgeting. When they choose to use a debit card, both credit union members and non-members like it for its convenience and ease of use.
To ‘Spearhead Conversations’
“Credit unions in particular – where ‘people helping people,’ customer service and personal relationships have always taken priority – are dedicated to meeting member needs for safety and convenience,” said Pierce. “PSCU plans to use insights uncovered from the study to spearhead conversations around secure leadership in the digital financial world and to deliver possibilities and seamless experiences to our owners and their members.”
MaritzCX, on behalf of PSCU, surveyed more than 1,500 credit union and non-credit union members from across the United States for the study.The Eye on Payments white paper is available for download on the PSCU website.