According to a survey held in 2016, 40% population preferred credit cards, 35% chose debit cards, and 11% population selected the cash option. It showed that most of the people prefer to use credit cards than any other payment method. Year by year, credit card holders are increasing, and debit card holders are decreasing. The survey also revealed that debit cards were being preferred by the individuals running small businesses and less developed industries.
Usage of digital wallets or E-wallets is not much promoted till now. There are only a few users who prefer to use digital wallets. Only 36% of merchants and retailers have been accepting payments through E-wallets. Developed businesses are accepting (56%) digital wallets with more intensity in comparison to that of small businesses (25%). The ones who’re unable to take the digital wallet concept, are basically not aware of the technology behind it, that’s why don’t consider it secure enough.
Hesitation to go digital because of security concerns
A measurable part of the world population still not feel comfortable to make payments digitally because of the security issue. As per the 2017 American Express Digital Payments Survey, 73% of consumers made an average of 3-4 online transactions in a year measured before June 17. While 37% of consumers ignored to make a digital purchase because of security norms. According to the survey, approx. 47% shoppers increased their frequency to buy online, and also 71% of sellers /dealers explained that their sale through the internet grew considerably.
Annoyance due to EMV chip cards may be a cause to amplify the number of digital wallet users
A study being run for many years shows that credit cards with inbuilt EMV chips have set a standard since 2015. Though, many consumers faced inconvenience due to increases security levels of these chip cards. More than 87% of users complained about the EMV chipped credit cards because of its reduced performance levels and slow processing. The time taken for processing of payment has been improvised in 2017 by using Visa’s Quick Chip technology. This technology allows processing transactions in 2.5 seconds only.
Credit Cards’ Usability
Nowadays, credit card users are increasing with time. More than 50% users use credit cards for routine payments. As per the FINRA 2016 Investor Education Foundation’s National Financial Capability Study, 52% of the users were recorded in 2015, who are paying solely with their credit cards only.
Person to person (P2P) payment statistics
According to the trends revealed by Bank of America in 2017, 36% of respondents and 62% of established business owners reported being using P2P payments. P2P payments are simpler because of ease it provides. There is no need to stand in a long line to submit a cheque and then to wait for it getting cleared. 68% users found P2P really convenient and 48% got to try it because of getting positive feedbacks from their friends.
How consumers prefer to pay for their expenses
It is hard to describe a preferred payment method. A survey done by an online bill payments’ provider in 2016 resulted that more than 33% were paying their monthly bills via mobile phone. A reduction in payments via cheques and drafts is noticed.
After getting an idea of all the payment methods, we can conclude that at whenever an unusual approach implemented to an ongoing technology, its usability decreased. For example; we can consider, EMV chip credit cards which caused great inconvenience to the consumers. There is not any payment method that provides its users with utmost flexibility in all sort of payment purposes.
There introduced an approach based on blockchain technology in 2009 by Satoshi Nakamoto; the name of the introduced technology is Bitcoin. It is the first cryptocurrency ever which availed people with all new advancements payment terms. After that many other cryptocurrencies launched based on the same concept. Using blockchain technology, a cryptocurrency transaction can be made. A cryptocurrency can be owned by investing any fiat currency like USD, EURO, GBP etc. Cryptographic technology gets involved in Blockchain technology which allows people to transfer funds from anywhere in the world (one country to other) at any time. This approach is fully decentralized, i.e., completely free from any authorization of government bodies. More people are adopting this technique as the time is going by.
The chief advantages attached with the use of any cryptocurrency is security, transparency, untraceable transactions, decentralized transfer process and peer-to-peer connection establishment. In recent years, cryptocurrency world has been accepted by many investors and traders.