Over the past few years, businesses in every industry have started accepting both credit and debit cards as a primary mode of payment for their products and services. This shift is largely attributed to a change in consumer behavior over the past decade. Nowadays, majority the customers prefer to make payments online, via cards. As a result, the use of credit and debit cards is increasing at an expedited rate worldwide due to the evolving habits and acceptance of the consumers. This increase is not expected to stop soon as reports predict a worldwide increase in the number of card payments by about 55%.
Online merchants are boosting card usage
According to recent reports, in 2015 the number of payments via card increased by nearly 15% to over 270 billion dollars, as compared to the mere 8% increase in the number of cards issued during the same period. The changing habits and increase in the acceptance among the consumers have been the major two factors in this growth. This figure demonstrates the fact that card payments have become the most prevailing payment methods adopted by both the businesses and the consumers. The rapid emergence of online merchants is also promoting the card usage because of its safety and convenience.
This increase in the card payment numbers is predicted to witness a more drastic increase between the years 2015 to 2021 and is expected to be around 417 billion.According to the report, this increase in the card payments amount is expected to be the strongest in developing countries like Asia Pacific, Central and Eastern Europe (CEE), and the Middle East and Africa (MEA).
According to a report, the e-commerce industry only constitutes about 11% of the card payments, indicating that 89% of card payments have been made at physical stores. This shows that a higher number of businesses have started accepting payments through cards.
An array of strategies are being used
There are different strategies being embraced in different markets in order to enhance the use of cards as the means of payment. Many countries are offering incentives and promotions for the consumers if they make payments through debit or credit cards. This has shown an increase in the amount of card payment.
The report showed that in Thailand, banks are using marketing tactics to encourage the usage of debit cards as the mode of payment. They are offering incentives to the businesses and merchants to accept card payments in order to make a contribution towards an increase in card payments.
Furthermore, in Poland and Czech Republic, the introduction and drastic spread of contactless cards have further escalated the increase in card payments.
Similarly, many other developed and developing markets have started introducing contactless cards and with the acceptance infrastructure of the consumers, as well as their evolving habits, more and more users have started utilizing debit and/or credit cards as their major means of payment.
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