World of Choice: Consumer Payment Preferences

A decisive shift in consumer payment preferences from paper and cash to electronics poses customer relationship and cost control challenges for banks.

The inevitable and ongoing march from paper to electronic retail payments has become a full-on run, according to a recent consumer payment study conducted by BAI and Hitachi Consulting. Consumers are using debit cards more aggressively, particularly PIN debit, instead of cash or checks, even for small-value purchases in stores, while increasingly using electronic bill pay for recurring payments. This rise in the use of plastic and automated payment vehicles is putting greater pressure on banks to find new ways to reward and retain customers for their electronic payments. Bankers also need to find an appropriate balance managing cash and checks, as those become a smaller part of the payments mix...
BAI: World of Choice: Consumer Payment Preferences