Meta research has shown that consumers are demanding faster payments from businesses. With only 20% of surveyed consumers saying they prefer a paper check as a method for receiving payment, we may well ask: how long before digital payments from businesses are ubiquitous? Reporter Patrick Brusnahan of Verdict Payments recently looked at the current state of digital disbursements in America.
- Direct deposit: Meta’s recent study revealed that 39% of Americans would prefer to do business with a company that offers a direct deposit they’d receive in a few days. This increases to 47% if the direct deposit is available in minutes. This translates into opportunity for businesses. Meta’s Sheree Thornsberry is quoted: “faster payments meet consumer demand while providing the opportunity for business growth.”
- Digital, peer-to-peer: While 47% of survey-takers said they would prefer a business to direct deposit their payments, 24% of respondents would like to receive payments from a business via PayPal, Zelle or Venmo – indicative of how mainstream these P2P payments have become.
- Fast and convenient: When asked what factors influenced their payment preferences, 36% of respondents named convenience as the key payment feature. A further 18% selected their preferred method because it was quicker. Curtis Webb of Meta noted that our research seems to show that “…consumers are demanding seamless, faster payments across the board.”
Though this all highlights the trend toward digital payments, Webb pointed out “…not everyone is on board with faster payments just yet. Some still prefer the paper check, including 20% who prefer to receive business-to-consumer disbursements via paper check, 60% of which are 55 years of age or older.” Nonetheless, with the data from the study showing that faster payments have a direct impact on customer retention and loyalty, it is likely that businesses will work to encourage all consumers to adopt faster payment technology while diminishing reliance on paper checks.
Read the complete Verdict Payments article here.