Rise in digital wallets presents credit unions with opportunity
With the pandemic as catalyst, eCommerce as a share of retail sales jumped from 11.1% to a peak of 16.1% in 2020, per the U.S. Census Bureau. And although in-store shopping returned as the world reopened, eCommerce still represented 14.8% of total retail sales as of Q4 2022.
This shift is contributing to a revolution in how consumers prefer to pay. Although shoppers continue to pull out their debit cards at a rate of 38% for everyday purchases like groceries, this percentage falls to just 23% when shopping online. Digital wallets like Apple Pay, Samsung Pay, and Google Pay account for much of this disparity.
Another indicator of the growth of digital wallets is the fact that two-thirds of consumers said they now prefer mobile payments as they have more built-in security features. In addition, 71% of U.S. consumers surveyed had used a mobile wallet in the prior 12 months, and 56% felt comfortable leaving their wallets at home and using their phone for payments at the point of purchase.
As consumers are looking for greater convenience in payments, digital wallets are clearly on the rise. As a credit union, how can you best capitalize on this opportunity, while supporting your members’ evolving payment needs?
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