PSCU Payments Study: Consumers Focused on Security, Convenience & Comfort
The study highlighted the ways credit union members and non-members apply needs and desires to their choice in payment methods.
MaritzCX, on behalf of St. Petersburg, Fla.-based PSCU, surveyed more than 1,500 credit union and non-credit union members from across the United States about their payments preferences. The study highlighted the ways consumers apply needs and desires to their choice in payment methods and provided key information about factors influencing consumers daily.
PSCU wanted to obtain a better understanding of factors influencing consumers when it comes to their choice and usage of different payments methods, how these factors may differ among different life stages and how credit unions can better meet these preferences and needs. PSCU discovered that when making payments, consumers today are motivated by two primary needs: safety and convenience.
“Consumers are faced with purchasing decisions every day. As the payments landscape continues to evolve at a rapid speed, it is more essential than ever for credit unions and other financial institutions to effectively manage innovation and security to ensure all of their products, services and offerings are meeting consumer expectations,” Tom Pierce, chief marketing officer for PSCU, said.
Key survey findings included:
- Thirteen percent of credit union members have been a card fraud victim and 4% have had their identity stolen in the last year alone. Similarly, 11% of non-credit union members were a card fraud victim and 4% also had their identities stolen during the same time period.
- While a third of respondents currently use digital payment methods, 38% cited concerns about security as a reason for not using digital payments. With improved fraud detection tools now available and consumer education about the value of these tools, financial institutions can help mitigate any hesitation consumers may have when it comes to digital payments and maximize opportunities related to mobile wallets.
- Baby boomers prefer to use credit cards more than any other age group. They are also more likely to use a credit card over cash, which breaks the stereotype that boomers are set in their older ways.
- Generation Z is already comfortable with conducting their banking and making transactions online. However, the survey found that this group more interested in having a financial adviser at their fingertips, even more than Millennials. Gen Z is paving the way for a future where digital payments and quality, personal assistance will merge.
- Debit is the most often used payment method among credit union members when making in-store purchases. Debit cards have the potential to serve as a replacement payment method for cash users, particularly at routine retail locations. Paying with a debit card is both convenient and allows for better budgeting. When they choose to use a debit card, both members and non-members like it for its convenience and ease of use.
“Credit unions in particular – where ‘people helping people,’ customer service and personal relationships have always taken priority – are dedicated to meeting member needs for safety and convenience. PSCU plans to use insights uncovered from the study to spearhead conversations around secure leadership in the digital financial world and to deliver possibilities and seamless experiences to our owners and their members,” Pierce added.
The online survey, which took place in September 2018, was taken by participants aged 18 to 65 plus. Of those surveyed, 54% were female and 46% were male, and demographic characteristics of those surveyed closely align with consumer data from CUNA’s 2018 Member Profile.