As the holiday season continues and the frequency of payments spikes, understanding how and where consumers use different payment devices is invaluable to both merchants and issuers alike, helping assist in customer service, authorization, and fraud strategies. In this three part blog series, Javelin identifies key spending metrics for the in-store, online, and mobile channels, as well as methods of improving the frequency and value of a payment method with practical methods for issuers and merchants to determine how to balance their payment strategy this holiday season and through 2019.

Consumer payment preference is shaped by many factors, with in-store retailers having the greatest influence over the payment channel selected. The innovation many retailers are initiating this year are geared towards driving consumers to pay quickly and with specific payment methods. Having payment options enables consumers to quickly make purchases without the need to stand in line. As new payment methods are implemented, Javelin Strategy & Research will continue to assess how consumer payment preferences change in 2019. 

In store purchases remain the most frequent method of shopping at more than twice the rate of e-commerce and mobile purchases. Issuers and merchants should provide consumers with immersive experiences in store to make shopping an experience which evokes emotions. Many financial institutions offer discounts at participating merchants, yet consumer adoption of discounts has lagged. By tailoring the offer to an experience – after hours access with personal shopping assistance, additional rewards or discounts with same store transactions, and free gift wrapping (could be at the financial institution branch to drive greater traffic) can all be ways to increase payment utilization of credit and debit during the holidays. 

Consumers spend more money, and are more open to being influenced in store for purchases when they are using a credit card. To increase purchase volume, financial institutions can focus helping consumers understand what is available to spend in their debit account to make them feel more comfortable with a larger purchase. Improving dashboards to keep a budget, show progress, identify where savings can be found, can reduce the anxiety a shopper may have when trying to quickly determine if they can afford adding to their purchase1.  

Cash is not going away but it is used less frequently. The smaller ticket value and the lower frequency of usage indicates that consumers are still making smaller purchases with cash but use other payment methods. Ensuring that customers know where ATMs are located, if digital wallets are supported, or if gift cards are available at a branch for purchase can help streamline the holiday season for cash usage.


1September 2018 report Chase’s Finn App Aims to Make Financial Fitness a Lifestyle.



About Krista Tedder

Krista Tedder is an experienced thought leader in the payments industry working with issuing and acquiring financial institutions, merchants, and payment service providers. She advises clients on how to move from foundational to transformational payment practices to improve consumer satisfaction while increasing profitability. Krista provides strategic consulting on core technology providers and methodologies, emerging technologies, and product marketing functions for payments, including market assessments, go-to market strategies, and content marketing strategies.

Krista’s experience crosses all payment verticals of the past 20 years — from merchant, consumer (debit, credit, prepaid, mortgage), and processor (acquiring and issuing), to brand networks. Her experience in various management roles at Bank of America, First Data, Mastercard, and fintechs brings a holistic point of view to payment research. She has given numerous presentations at conferences globally — BAI Retail Delivery, Card Forum, Mastercard Global Risk Leadership, World Credit Union Conference, and others.

Krista holds a Bachelor of Arts degree from York College of Pennsylvania with a focus on communications and education. Ongoing education and certification in product management, product development, and marketing enable Krista to articulate business challenges and opportunities to Javelin Strategy clients within the Payments Practice.

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