Survey Says: 43% Of Consumers Prefer To Use Credit Cards
By Fatima D. Lora, Assistant Editor Retail TouchPoints recently conducted a social poll via Facebook and LinkedIn which indicated that most (43%) of consumers prefer to use their credit cards when shopping at their favorite retailer. BIGinsight Analyst Randi Honkonen took the poll on LinkedIn and explained why she chooses to use her credit card rather than cash, a debit card or a smartphone. “I'm a big fan of my American Express card — I get points I can use like cash on Amazon. I rarely carry cash, and I prefer not to use my smartphone or debit card for security reasons.”
Similarly, Retail TouchPoints’ Contributing Editor, Lorna Pappas, opts for the credit card because she likes to receive CitiCard’s cash-back bonus points. “I also like to pay by check so my credit card balance doesn't get too high,” she said. One Facebook respondent offered to comment on why credit cards might be the most preferred method of payment. “I think [credit cards are] still more trusted than the phone and more convenient than cash,” said Jennifer A. Jones, SVP at MSLGroup, a division of advertising services provider, Publicis Groupe.
Although a majority of respondents chose to use their credit cards (43%), debit cards (25%) and smartphones (22%) still are preferred methods of payment over cash. ‘Smartphonatics’ Dominate Mobile Adoption An increasing number of consumers worldwide are adopting mobile payment methods. The group of consumers most interested in mobile technology and mobile payment are a particular segment of smartphone owners. Aite Group, an independent research and advisory firm, defined these consumers as “Smartphonatics” —people who change their shopping, financial and payment behavior as a result of owning a smartphone. “Nearly two-thirds of U.S. Smartphonatics say they’re using less cash than they did three years ago. Among other consumers, approximately 50% are using less cash,” according to an Aite Group study titled: The Global Rise of Smartphonatics: Driving The Mobile Payment and Banking Adoption in the Americas, EMEA, and Asia-Pacific.
“The differences between Smartphonatics and other consumers are reflected in their choice of payments,” the study noted. “Paying with a mobile device is already the preferred method of payment for small-ticket items, higher-value goods and person-to-person transactions among a small percentage of Smartphonatics. This percentage is sure to increase as the number of retail locations accepting mobile payments rises.”