6 Surprising Facts About Popular Payment Methods
At Red Payments, we’re fascinated with everything that has to do with merchant services and payments processing. We love to find out what methods are the most popular, what methods are fading out, and the overall trends in the merchant services world. Recently, some studies revealed some facts that may surprise you about how consumers pay for their goods. Here are our favorite study revelations from recent years...
- People who are younger tend to be more likely to pay with a prepaid card. This one surprised us, but it probably shouldn’t have. Younger people tend to need prepaid cards because they don’t have the credit to obtain a credit card. 2 of every 3 people under the age of 35 have bought a prepaid card within the past year. If you don’t accept prepaid cards, you might want to start doing so soon – at least, if your target audience is youthful.
- 18% of all people are expecting stores to begin accepting digital currency by 2020. Bitcoin might actually become a serious currency among retailers if this becomes true. However, we’re not sure it’s actually going to happen so soon, since there are still issues with the currency’s value and use.
- People will spend twice as much with a credit card as they will with a debit card. In 2016, the average purchase on a debit card was $39. The average price of a purchase on a credit card was $98. Prepaid card purchases tend to be the smallest, with an average purchase value of only $23.
- Transactions with the highest average value were done via ACH and check payments. The average ACH transaction equated to approximately $2121. The average check payment stayed around $1363 in 2016. If you have a company that does high price purchases, this may be a payment method you want to keep in your arsenal.
- The only places where most people still pay with cash are now fast food stores and coffee shops. Cash apparently is still king for small, quick transactions. However, that, too, is quickly changing as fewer and fewer people carry cash on them.
- Debit cards are more popular than credit cards – by a wide margin. 43% of people prefer debit cards, compared to only 36% of people who prefer credit card payments.
Are you surprised by any of these statistics? To find out what payment methods you should accept, give us a call. We’re always here to help you out.