When considering whether to switch which payment card they prefer to use, consumers tend to seek out higher discounts on purchases, new research suggests.
For its study “Payments Regulation and Consumer Expectations: How to Best Manage the Changes Ahead,” Javelin Strategy & Research surveyed 4,998 U.S. adult consumers online in September. The survey included a series of hypothetical questions about possible changes in payments behavior, Beth Robertson, Javelin director of payments, tells PaymentsSource.
Asked what would motivate them to switch cards from debit or credit to prepaid, cash or another option, 47% of respondents said no discount below 10% would persuade them to switch, while just 9% would switch for a discount of less than 3%.
“Because consumers seek a reasonably costly incentive, it will be difficult for merchants to steer consumers to the payment option the merchant prefers,” says Robertson. “Consumer preference will continue as a more important influence on payment mix, although disincentives, such as bank fees, may ultimately affect that preference.”
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