Deloitte's Center for Financial Services today reports that consumers are looking toward the broader ‘ecosystem’ to simplify their payments experience as innovative payment instruments become more prevalent.
Nearly half of US consumers surveyed expect to use credit cards more than any other payment instrument in the next two years, Deloitte finds. This is primarily driven by the attractive rewards, discounts, and cashbacks that accompany credit card spending.
Despite this, consumer loyalty toward credit card usage appears fragile, with two-thirds (approx. 66%) of consumers surveyed likely to switch alternative payment instruments if they receive similar, credit-card-type rewards in return.
Credit cards with device-based wallets such as Samsung Pay or Apply Pay are currently the most popular option for payments, and as they only comprise around 40% of transactions, Deloitte argues that issuers should target this area to capitalise on the trend and increase market share.
Interestingly, the report found that a majority of respondents were interested in using a financial superstore app to streamline their day-to-day transaction activity. Such an app would allow consumers to access financial products such as a personal loan from the same bank or other institutions, buy products and services, and manage personal finances from a single app.
More than three in four respondents believe banks or credit card issuers are best positioned to deliver such a product and would be well served by achieving first-mover advantage.