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Mastercard research reveals surge in digital payments with bolstering e-commerce

By Pavithra R

June 22, 2020

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Jorn Lambert, Executive Vice President, Digital Solutions

Mastercard’s recent global study conducted in 15 markets has revealed that consumers are adopting new payment habits at an accelerated pace due to the constraints imposed on daily lives due to COVID-19. Many are moving away from cash and opting for contact-free and digital payments experiences.

Mastercard’s SpendingPulse has also disclosed surge in e-commerce with record growth rates across the globe as consumers increasingly shop online.

The research revealed two notable payment behaviours:

  1. In-store, a massive move away from cash: 7 in 10 consumers say the shift to digital payments will likely be permanent, and nearly half of consumers plan to use cashless, even after the pandemic subsides. About 46% of respondents in the Asia Pacific say they are using cashless often, while two thirds of LATAM consumers say they are using cashless or not at all. In Europe, 64% said tap and pay is now their preferred way to pay in-store.
  2. A steep increase in e-commerce: Mastercard SpendingPulse1, which measures retail sales across all payment types, including cash and check, shows that U.S. e-commerce spending grew by 93% year-over-year in May. In April and May, e-commerce, as a share of total retail sales reached 33% in the United Kingdom.

“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. 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,” said Jorn Lambert, Executive Vice President, Digital Solutions.

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 card information.
  • One-click payments to speed checkout: Enrollment is being made simple for consumers including Citi’s tens of millions of cardholders in the U.S. who can now push their card credentials from their banking mobile app to merchants and Click to Pay.
  • Digital First powers consumer choice: Mastercard believes mobile devices as the primary source of communications and is focussed on designing digital products from the ground up, with the physical card optional.

“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,” added Lambert.

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