Discover® Global Network Study Shows 85% of Consumers are Less Likely to Interact with a Business Due to a Poor Payment Experience
03 June 2024 - 4:00PM
Business Wire
Improved payment experiences are vital to
merchants, with 94% considering payments a strategic priority
Discover Global Network®, a leading global payment
network, released the first portion of the 2024 Payment State of
the Union (PSOU), one of the most comprehensive studies of its kind
in the industry, providing global perspectives from merchants and
consumers. The research study, commissioned by Discover Global
Network with S&P Global Market Intelligence’s 451 Research,
uncovers key insights into merchant payment trends in response to
customer payment priorities, merchant pain points and advancements
in digital payments. At Money 20/20 Europe, Discover Global Network
will share a first look at the PSOU results, highlighting emerging
trends in the industry from global merchants and consumers.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240602256326/en/
Payments are at the heart of omni-channel
success (Graphic: Business Wire)
Here are key takeaways from respondents in this new study:
- Payment Diversification Can Drive Competitive
Differentiation for Merchants
- Merchants see value in a seamless payment experience: Nearly
two out of three (61%) merchants say payments are a highly
strategic area of focus that drives significant competitive
differentiation.
- Merchants see an assortment of digital payment options as a key
driver: More than half of merchants (53%) said offering a variety
of digital payment options is the top strategy for driving
conversions, highlighting the need for diverse payment integration
for a personalized payments experience.
- Consumers agree with merchants: the ability to pay using a
preferred payment method is the most significant factor (63%
strongly agree) influencing consumers to complete a purchase.
- Merchants realize there is room for improvement: Less than one
out of four (23%) merchants believe they are providing highly
engaging digital experiences for customers.
“We’re seeing a continuing trend of merchants viewing payments
as a driver for top- and bottom-line improvements, in addition to
customer experience enhancements,” said Rajiv Gupta, vice
president, international markets (EMEA) at Discover Global Network.
“It’s no longer cash or credit as the two options. Our payment
solutions can help merchants enable various options so consumers
can pay using their preferred payment method.”
- Click and Mortar: Omnichannel Options are a Key Pain Point
for Consumers and an Opportunity for Merchants
- In-store payment experiences should not be overlooked: While
most consumers globally (57%) expect to spend most of their
discretionary income online this year, in-store purchases are
rebounding, rising to 43% in 2024, up from 39% in 2023.
- Consumers in both North America and EMEA are driving in-store
spend. More than half (55%) of consumers in North America and
nearly half (48%) of consumers in EMEA expect to spend the majority
of discretionary income in-store.
- Consumers are frustrated by today’s omnichannel experience:
Over the last six months, a lack of omnichannel options is the
primary pain point consumers experienced after making a payment to
businesses.
- Merchants recognize there’s work to be done as 86% agree their
omnichannel payment experience needs improvement.
- Tap to Pay on Mobile and Integrated Checkout Experiences Are
a Key Piece of the Future In-Store Experience
- Merchants see tap to pay on mobile (92%) as the #2 two value
driver for their organizations over the next three years.
- The benefits of Tap to pay on Mobile drives merchant interest:
The ability to accept payments nearly anywhere (61%) and deliver a
more personalized sales experience (56%) are the top two use cases
driving merchant interest in the technology.
- Consumers enjoy ease of tap-to-pay on mobile: Nearly three out
of four consumers (73%) are comfortable making an in-person payment
by tapping their card or phone onto a merchant’s mobile
device.
- Merchants are prioritizing unique checkout experiences: In
addition, to convert more shoppers in-store, merchants are
prioritizing ways to offer an integrated app checkout experience
that combines payment, offers and rewards (43%), promote
contactless payment options (39%) and offer more
installment/financing options (39%).
“With more consumers returning to in-store shopping, merchants
have an opportunity to elevate their payment options to ensure they
reflect the changing preferences of consumers," said Gupta.
“Whether it’s tap on pay mobile or contactless payment options,
Discover Global Network offers the payment tools and resources
merchants need to help convert customer sales.”
Money 20/20 Europe
Discover’s Rajiv Gupta and 451 Research’s Jordan McKee
will host an in-depth mainstage presentation to highlight the
findings from the Payment State of the Union and what it reveals
about the payments space and merchant/consumer needs.
- When: Tuesday, Jun. 4 10:30 AM Local Time
- Where: The Singularity Stage, RAI
- What: Enhancing the Payments Experience: Balancing
Merchant & Consumer Needs
“This year’s survey revealed the value of payments for both
merchants and consumers. Merchants are recognizing how diverse
payment options can lead to higher conversions, while consumers are
prioritizing payment methods tailored to their individual needs and
requirements,” said Jordan McKee, Research Director of the fintech
practice at 451 Research, part of S&P Global Market
Intelligence. “With this in mind, a critical success factor for
merchants is aligning with payments partners who understand the
nuances of the global landscape and can connect them to the payment
methods their customers expect to use.” 1
For a deeper dive into these findings, visit (or download) the
full study.
Survey Methodology
A global survey of 5,030 consumer and 2,258 merchant respondents
was commissioned by Discover Global Network and conducted by 451
Research, part of S&P Global Market Intelligence, an
independent research firm, in Q1 2024. Markets surveyed include
Brazil, Canada, mainland China/Hong Kong, Germany, India, Japan,
Mexico, Singapore, the UK and the US.
About Discover
Discover Financial Services (NYSE: DFS) is a digital banking and
payment services company with one of the most recognized brands in
U.S. financial services. Since its inception in 1986, the company
has become one of the largest card issuers in the United States.
The company issues the Discover® card, America's cash rewards
pioneer, and offers private student loans, personal loans, home
loans, checking and savings accounts and certificates of deposit
through its banking business. It operates the Discover Global
Network® comprised of Discover Network, with millions of merchants
and cash access locations; PULSE®, one of the nation's leading
ATM/debit networks; and Diners Club International®, a global
payments network with acceptance around the world. For more
information, visit www.discover.com/company.
1 Enhancing the payment experience: Balancing merchant and
consumer needs, S&P Global Market Intelligence 451 Research,
2024
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Katie Gaynor +1-513-478-0851 katiegaynor@discover.com
@Discover_News
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