For Holiday Spending, Consumers Will Use Cash and Debit
As consumers head to the malls and shopping strips this holiday season, more than half are expected to use cash or debit cards and only one out of three shoppers will break out credit cards to buy gifts, so reports an online survey of Litle & Co., a Lowell-Mass.-based payments processing company.
Ben Saren, vice president of marketing at Litle, said this trend might help credit unions market debit cards to members and attract new members as long as the card provides incentives.
Consumers apparently are not yet enamored with using their mobile devices at retailers’ point of sale. The survey found 71% of consumers have never used a merchant’s mobile device swipe service such as Square, Google Wallet or PayPal. What’s more, only 8.6% of shoppers with smartphones think mobile wallets are going to change the payment world, according to the survey.
“Consumers are carefully choosing between using credit or debit/cash, and it’s no wonder given the current economic climate,” said Saren. “They are making trade-offs between using their available funds rather than credit to defer payment but are evidently swayed by the chance to earn bonus awards and miles. Meanwhile, the number of shoppers transacting via their mobile devices is small and really calls into question the consumer appetite for mobile payments.”