Bank Transfers Look to Make the Leap From Bill Pay to Retail

The path to broad retail acceptance of online bank transfers may depend on consumers’ willingness to experiment with new payment methods, and PYMNTS’ data suggests the willingness is there: 29% of consumers are very or extremely interested in trying a new payment method.

Moreover, the younger and wealthier consumer demographics — those who are most sought after by merchants and financial institutions (FIs) – have the greatest interest in trying new payment methods, such as online bank transfers. This may indicate the opportunity awaiting merchants that facilitate the usage of this payment method.

In “New Ways To Pay: Aligning Consumer And Merchant Payments Preferences,” a PYMNTS and Nuvei collaboration, we surveyed 2,466 U.S. consumers to assess the factors that influence consumers’ decisions about their preferred payment methods at time of purchase.

• Thirty-seven percent of U.S. consumers have used online bank transfers in the previous month for recurring bill payments, and 26% say the transfers are their preferred method for recurring payments. The challenge for merchants is convincing these consumers that the transfers can be useful for shopping.

• Thirty-five percent of consumers who are highly interested in using online bank transfers say they want to use them because of their faster speed. Consumers tend to show interest in trying a new payment method when they believe they will derive some benefit; in the case of online bank transfers, the speed of the transaction is one of the attributes that appeals most to consumers.

• Forty-six percent of consumers know what online bank transfers are and have used them. PYMNTS’ data shows the presence of a base of consumers already participating in the economy’s digital shift, are familiar with payment methods like mobile apps and are willing to experiment with emerging methods like online bank transfers.

As more consumers recognize the benefits of using online bank transfers in the purchase process, usage of this emerging payment method may become more widespread.

To learn more about the potential of online bank transfers for merchants and consumers, download the report.