Mastercard Research Shows Surge in Digital Payments as E-commerce Reaches New Heights Around the World
June 18 2020 - 6:00AM
Business Wire
Study shows consumers worldwide opting for
touch-free, secure and seamless ways to pay
The way we shop is changing. With constraints imposed on our
daily lives due to COVID-19, consumers are adopting new payment
habits at an accelerated pace, according to a global study by
Mastercard conducted in 15 markets. Consumers are increasingly
moving away from cash and opting for contact-free and digital
payments experiences – and they don’t expect to go back. E-commerce
is also seeing a surge, with Mastercard SpendingPulse reporting
record growth rates across the globe as consumers increasingly shop
online.
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As our payment behaviors evolve, two notable trends emerge in
our research:
- In store, a massive move away from cash: Globally,
almost seven in 10 consumers say the shift to digital payments will
likely be permanent, and nearly half of consumers plan to use cash
less, even after the pandemic subsides, according to a Mastercard
weekly survey launched April 27. Since the pandemic began, nearly
half (46%) of respondents in Asia Pacific say they are using cash
less often, while two-thirds of Latin American consumers say they
are using cash less or not at all. In Europe, which already had the
largest adoption of contactless payments of any region, 64 percent
say tap and pay is now their preferred way to pay in-store.
- A steep increase in e-commerce: As highlighted in
Mastercard’s newly released Recovery Insights: Shift to Digital
report, e-commerce has reached new heights. Mastercard
SpendingPulse1, which measures retail sales across all
payment types including cash and check, shows that United States
e-commerce spending grew by 93 percent year-over-year in the month
of May. And in April and May, e-commerce as a share of total retail
sales reached 33% in the United Kingdom – an unprecedented high
(ex. auto, petrol and restaurants). Note that e-commerce follows
the Census definition*.
“While no one could have predicted the state of the world we’re
in today, it has reinforced the necessity for us to continue
evolving the consumer payment experience to meet the consumer
wherever they are,” says Jorn Lambert, Executive Vice President,
Digital Solutions. “We’ve been focused on building our
Digital-First capabilities for years, which have enabled this
accelerated shift to digital payments – it’s unlikely consumers
will revert to old payment habits.”
Building the Foundation for the Future of Payments
From a simplified online checkout experience to an in-store tap
on a contactless terminal, Mastercard is leveraging its insights
and technology, forging critical partnerships and driving
innovation to ensure a solid foundation to deliver the future of
payments.
- Using non-sensitive data to enhance security: Mastercard
Digital Enablement Service (MDES) turns card numbers into tokens
that become useless to fraudsters and eliminates the frustration of
manually updating your card information. MDES is live with more
than 2,600 issuers and 1,200 token requestors, and we’re rapidly
adding global players from across the ecosystem, including
Adyen, Braintree, a PayPal Service, Etsy, Mercado Libre/Mercado,
Mastercard Payment Gateway Services (MPGS), Pago, PayPal,
Stripe, Thales, T-Mobile, and Yandex.Checkout to deliver
this security at scale.
- One-click payments to speed checkout: Click to Pay, our
one-click checkout experience, uses tokenization to secure your
card credentials and makes passwords a thing of the past.
Enrollment is being made simple for consumers including
Citi’s tens of millions of cardholders in the United States
who can now push their card credentials from their banking mobile
app to merchants and Click to Pay. More than 10,000 merchants have
been enabled for Click to Pay, including Crate & Barrel,
Expedia, Fresh Direct and Saks Fifth Avenue. Technology
partners such as MPGS are important to enabling acceptance
for merchants, and we also work closely with ACI Worldwide,
Aurus, Global Payments, and Square.
- Digital First powers consumer choice: Even before the
pandemic, mobile devices have been our primary source of
communication, information and, increasingly, commerce. That’s why,
instead of merely supporting physical cards with digital
experiences, we’ve been focused on designing digital products from
the ground up, with the physical card optional. This summer, we’re
partnering with Samsung and SoFi to deliver a Digital First
debit card backed by a cash management account called Samsung Money
by SoFi. We have also launched Digital First programs with
Falabella in Latin America, GrabPay in Singapore and
the Philippines, Mox by Standard Chartered and WeLab
Bank in Hong Kong, and cooperative banks in
Germany.
"Amidst an incredibly challenging time for individuals, for
communities and for businesses, we’re seeing sparks of change
brought upon by the growth of digitally-savvy consumers and
businesses embracing technology that will enable a swifter, more
secure future,” Lambert added.
Survey Methodology
Mastercard proprietary study conducted between April 27-May 17,
2020 among adults 18+. 6,750 interviews were conducted across 15
countries: Australia, Brazil, China, Colombia, France, Germany,
India, Italy, Spain, Japan, Mexico, Russia, United Arab Emirates,
United Kingdom, and The United States of America.
1About Mastercard SpendingPulse
Mastercard SpendingPulse™ reports on national retail sales
across all payment types in select markets around the world. The
findings are based on aggregate sales activity in the Mastercard
payments network, coupled with survey-based estimates for certain
other payment forms, such as cash and check. As such,
SpendingPulse™ insights do not in any way contain, reflect or
relate to actual Mastercard operational or financial performance,
or specific payment-card-issuer data.
*E-commerce sales are sales of goods and services where the
buyer places an order, or the price and terms of the sale are
negotiated over an Internet, mobile device (M-commerce), extranet,
Electronic Data Interchange (EDI) network, electronic mail, or
other comparable online system. Payment may or may not be made
online.
About Mastercard (NYSE:MA)
Mastercard is a global technology company in the payments
industry. Our mission is to connect and power an inclusive, digital
economy that benefits everyone, everywhere by making transactions
safe, simple, smart and accessible. Using secure data and networks,
partnerships and passion, our innovations and solutions help
individuals, financial institutions, governments and businesses
realize their greatest potential. Our decency quotient, or DQ,
drives our culture and everything we do inside and outside of our
company. With connections across more than 210 countries and
territories, we are building a sustainable world that unlocks
priceless possibilities for all. www.mastercard.com.
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Katie Priebe +914-707-9822 Katie.Priebe@mastercard.com Global
Communications
Jennifer Langione +1 (914) 318-2111
Jennifer.Langione@mastercard.com Global Communications
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