PYMNTS DATA AND ANALYTICS: INDUSTRY INDEXES

PYMNTS Data and analytics

INDUSTRY INDEXES

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem.

bank innovation readiness

October 2017 INDEX

key FINDINGS include:

36 percent of FIs said their existing IT infrastructure made payments innovation hard or very hard

68.0 percent of FIs with less than $500 million in assets say they are well suited for innovation

63.0 percent of FIs identify meeting a customer need as the main driver for innovation

83.6 percent of FIs run core processing systems without a sandbox for development innovation

39.7 percent of top innovators use sandbox-to-scale functionality

CHECKOUT CONVERSION

Q4 2016 INDEX

key FINDINGS include:

The top merchants all do certain things right—100 percent of the top 30 e-tailers offer product reviews and recommendations, free shipping and coupons.

The industry is getting smarter—two new merchants received an “A” grade in this edition, bringing the total number of top-grade earners to 20.

No single industry has yet reached a grade of either A or B. Most of them recieved C’s, while four make a D and two make an F.

DISBURSEMENT SATISFACTION

OCTOBER 2017 INDEX

INSIDE THE OCTOBER INDEX

52.8 (out of 100) was the average Disbursement Satisfaction Index Score, across all payment methods and respondents.

84 percent of respondents received at least one type of disbursement within the past 12 months.

Paper checks received the lowest Disbursement Satisfaction Index Score with at 4.4 (out of 100).

75 percent of respondents earning less than $60k who had used instant payments were mostly or completely satisfied with the experience

FINANCIAL INVISIBLES

OCTOBER 2017 INDEX

INSIDE THE OCTOBER INDEX

Financial Invisibles largely live paycheck-to-paycheck: 85 percent of Shut Outs, 73 percent of Second Chances and 66 percent of the On The Edge group reported doing so.

75 percent of Shut Outs were contacted by a bill collector within the past year.

24 percent of respondents were Voluntary Invisibles, while 5 percent were Involuntary Invisibles.

GIG ECONOMY

NOVEMBER 2017 INDEX

KEY FINDINGS INCLUDE:

84 percent of gig workers would do more work if they were paid faster

26 percent of gig employees said they receive payments through PayPal

69 percent of gig employees said they would not quit their gig for a full-time job

17 percent of gig employees lost 10 to 20 percent of their income to payment mechanisms

GLOBAL CASH

United Kingdom November 2017

KEY FINDINGS INCLUDE:

Total cash use in the U.K. surged to £218.3 billion in 2016 representing 11.3 percent of the GDP.

With banks shuttering, consumers are increasingly relying on ATMs for accessing cash. The U.K. has 108 ATMs and 30 bank branches per 100,000 people.

Cash usage may be growing, but overall share of cash is declining. Between 2010 and 2016, cash share declined by roughly 4 percent even as usage increased.

GLOBAL CITIZEN

FEBRUARY 2017 INDEX

KEY FINDINGS INCLUDE:

45 percent of international healthcare patients in the United States are aged 55 and older.

44 percent of patients list quality of care as their main reason for medical travel.

33 percent of patients are seeking treatment for life-threatening conditions.

GLOBAL FRAUD

OCTOBER 2017 INDEX

Key Findings Include:

45 percent: Increase in account takeovers in Q2 2017

$3.3 billion: Amount lost by merchants to account takeovers in Q2 2017

$57.8 billion: Value of potential fraud in the eight industries studied by the Index

5.5 percent: Increase in total fraud from Q2 2016 to Q2 2017

11.64 percent: Fraud rate of transactions over $500, 22 times higher than the fraud rate for transactions worth less than $100

Omni Usage

DECEMBER 2017 INDEX

KEY FINDINGS INCLUDE:

69.5%: share of consumer respondents that shop at large-format stores.

31.1 out of 100: average score for Digital Consumers, which outranked scores for Any-Channel Consumers (30.6 out of 100) and Brick and Mortar consumers (29.7 out of 100)

33%: the share of large-format shoppers who have tried or want to try “Value Me” features, the highest percentage of any category.

OMNIREADI

November 2017

Key Findings include:

Overall, 14 merchants saw their Index scores improve, while 60 scores stayed the same and nine

Mass Merchants retained the highest OmniReadi Index score of any industry, but scores in the space fell from 81.7 out of 100 last year to 81.3 this year.

Purchase Histories, Wish Lists and Account Profiles were among the main differentiators for Top 10 merchants.

The Index also features an interview with Drew Green, CEO of Indochino, discussing how the company has found omnichannel success despite an unconventional journey to get there.

RESTAURANT READINESS

DECEMBER 2017 INDEX

KEY FINDINGS INCLUDE:

The average Index score was 38 out of 100.

53 percent of QSRs use cloud-based POS systems.

74.1 percent of QSR’s offer in-store promotions.

Soup/Salad sellers had the highest average scores (50 out of 100), while frozen dessert distributors did the worst (26 out of 100).

SMB TECHNOLOGY ADOPTION

Q3 2016 INDEX

KEY FINDINGS INCLUDE:

While the average SMB says they are moderate users of technology, just 13 percent are willing to jump on the innovation bandwagon.

80 percent of smaller merchants still cannot accept mobile wallets like Apple Pay or Android Pay.

SMBs embrace innovation when enough customers ask them to. 31 percent of merchants in face-to-face environments and 26 percent of merchants in remote environments have adopted new payment technology because their customers want them to.

STORE FRONT

MARCH 2017 INDEX

KEY FINDINGS INCLUDE:

Fitness companies emerged on top in this quarter’s index with a growth rate of 6.0 percent. They were followed by building contractors/remodelers and personal services, both of which grew by 3.9 percent.

Main Street USA now boasts 3.4 million store fronts, a projected 2.1 percent growth since Q3 2016.

For a second quarter in a row, Mountain and Southern states continued to grow at the fastest rate. The two regions grew by 3.9 percent and 3.6 percent, respectively in Q2 2016.

SUBSCRIPTION COMMERCE CONVERSION

Q3 2017 INDEX

KEY FINDINGS INCLUDE:

59.8 out of 100 was the average Subscription Commerce Index Score, down 1.3 points (2.1 percent) from Q2.

SaaS/Cloud computing was the highest rated industry, receiving a score of 81 out of 100, compared to the worst performing industry, business services, which sored a 53.2 out of 100.

100% of the top 20 merchants offer plan options

The average time it took to sign up for subscription services was 114.6 seconds, a 221.sec (16.2 percent) drop from Q2.

X-BORDER PAYMENTS OPTIMIZATION

NOVEMBER 2017 INDEX

KEY FINDINGS INCLUDE:

The United States kept its top spot in the Index, coming in as the most cross-border friendly country PYMNTS studied with an Index score of 65.9 out of 100. China rose from fourth to second place with a core of 63.9 out of 100, followed by the U.K. in third 63.2 out of 100.

The Travel industry received the highest Index score with a 64.8 out of 100, followed by the Apparel and Accessories industry (63.0 out of 100) and the Housewares and Home Furnishing industry (59.4 out of 100).

Visa is the most commonly accepted payment type, accepted by 94.5% of merchants, followed by Mastercard, accepted by 94 percent – and PayPal, accepted by 79.8 percent.

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