Vantiv Releases Primary Research on Top Ten Payment Trends for 2013
Awareness, Interest and Adoption of New Payment Methods are Increasing, and Consumers Expect to Have More Choices within Two Years.
CINCINNATI - March 27, 2013 - Vantiv, Inc. (NYSE: VNTV), a leading provider of payment processing services and related technology solutions for merchants and financial institutions of all sizes, released today its primary research on the Top Ten Payment Trends for 2013. The Company will hold a live webinar detailing these findings today from 12:00 p.m. to 1:00 p.m. ET.
"Our research shows that consumers are beginning to embrace new, increasingly mobile options," said Moira Tamayo, senior vice president of marketing. "It also shows that consumers expect to have even more diverse payments choices in less than two years."
Each year Vantiv and its research partner Mercator Advisory Group conduct primary research on payment trends in the United States. A cross-section of U.S. consumers are asked details about how they currently make payments and how they expect to do so in the future. Selected research data and insights follow:
Selected Research & Findings
Consumers are increasingly using multiple channels to decide what products to buy and where to buy them. 46% of consumers usually research products online prior to an in-store purchase.
2) Mobile Payments Proliferation
Two-thirds of consumers expect mobile payments will be common in 5 years, and 36% of consumers think mobile payments will be common in less than 2 years, up 5% from 2012.
3) Mobile Wallets
44% of all consumers are aware of NFC-based mobile wallets, an increase of 12% since last year. However, just 10% of consumers say they are interested in using eWallets today.
4) Payments Security
Security concerns and lack of infrastructure availability are the primary reasons for low interest in mobile payments. 19% of consumers believe smartphones provide a secure technology for payments.
5) EMV Cards
EMV cards are just making their way into the U.S. Market, but some consumers already have them. 15% of consumers own a payment card containing a chip, and 24% have used them internationally.
6) Data and Offers
Discounts and rewards are big incentives for consumers and help steer their choice of payment methods. 34% of consumers would be more likely to use mobile payments if offered rewards similar to credit cards.
7) Consumer Behavior Changes
62% of smartphone owners currently use a password, but as phone-based payment become common, consumers acknowledge that password protection is critical. 77% of smartphone owners would prefer to have two security codes in place - one for the phone and one for the payment application.
57% of consumers are aware that small merchants can use a reader on their mobile phone to take payments, up from 34% last year. But usage is still limited to 6%.
9) Share of Wallet
With security concerns high, 23% of prepaid card buyers intend to purchase more general-purpose prepaid cards than they did last year. Nearly one quarter of all consumers and one-third of those 18-34 years of age expect to use prepaid cards as a substitute for a checking account with a debit card and checks.
10) Banking Relationships
In spite of all the new payment entrants, consumers express a preference for their current providers to lead the way into mobile payments. 50% of consumers prefer that a bank or credit union provide their digital wallet.
During today's live webinar, industry experts Lorena Harris, vice president of corporate marketing at Vantiv, and Ken Paterson, head of research operations at Mercator Advisory Group, will further detail how financial institutions and merchants can position themselves to meet rapidly-evolving consumer expectations.
To download the research paper or participate in this informative webinar, click here or register at http://info.vantiv.com/top-10-trends.html.
For more information about the Vantiv Insights series, to replay previous webinars, or to download articles from the Vantiv Resource Library, visit vantiv.com/Insights. To learn more about Vantiv, please visit vantiv.com or on Facebook, Twitter, LinkedIn, Google+, and YouTube.
Director of Public Relations
About Vantiv, Inc.
Vantiv, Inc. (NYSE: VNTV) is a leading, integrated payment processor differentiated by a single, proprietary technology platform. Vantiv offers a comprehensive suite of traditional and innovative payment processing and technology solutions to merchants and financial institutions of all sizes in the U.S., enabling them to address their payment processing needs through a single provider. We build strong relationships with our customers, helping them become more efficient, more secure and more successful. Vantiv is the third largest merchant acquirer and the largest PIN debit acquirer based on number of transactions in the U.S. The company's growth strategy includes expanding further into high growth payment segments, such as ecommerce, mobile, prepaid and information solutions, and attractive industry verticals, such as business-to-business, government, healthcare and education. For more information, visit www.vantiv.com.
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