adyen, financial technology platform chosen by many of the world’s leading companies, presents the results of its latest Adyen Payment Methods Report 2023 in Spain. This new study makes visible the evolution of the offer of multiple payment options for both consumers and retailers, and shows, among other data, the growth of the offer of payment options deferred payment in Spanish companies (63%)wave safety priority by consumers when opting for one method or another when paying (87%).
This report, developed by Adyen based on surveys carried out with more than 411 companies with more than 100 employees and more than 1,000 consumers in Spanish territory during the second half of February 2023 (1), allows us to see the evolution of habits of payment in our market as a direct consequence of the changes experienced.
Shopping trends: credit cards and deferred payment
The last three years have caused purchasing habits to condition the choice of users and the investment of companies around the payment methods offered. Technological progress, as well as different global events, have shaped the current profile of the average Spanish consumer, however, some predictions, such as the end of cash or the disappearance of physical stores, do not seem to be fulfilled at the moment.
Although slightly, the number of users who opt today for digital payment options has increased from 43% in 2022 to 45% in 2023, and they assure that they have no reason not to use them. However, there are still 22% who do not consider it necessary to use digital payment options, and 12% who do not because they do not want to lose control of what they spend.
The Credit or debit card It ranks as the option most used by consumers (82%), followed by him cash (62%) and payment through PayPal (54%). In addition, among payment methods, the progressive growth of e-wallets such as Apple Pay, Google Pay and Samsung Pay (29%) stands out, which were used only by 13% of consumers in 2022; an increase that reveals how companies in our country are increasingly adapting to offering various possibilities through digitization.
When it comes to payment in installments, analysts predict that the global financial expense of this type of payment method will increase by 92%, an increase of 353 billion to 680 billion of dollars. And within two years, the value of this payment method is expected to reach 12% of total e-commerce spending on physical goods alone.
Given the current global situation, more and more forms of financing are required to make purchases. Deferred payment offers a great advantage in this sense, financial flexibility for consumers of all kinds. In our market, more than half of consumers (55%) claims to have used payment postponed sometime. When analyzing this payment method by type of product, we can identify that in the sectors where it is most used is in purchases linked to household appliances (28%), electronics (21%) and automotive (20%).
ANDt is rewarding and interesting to observe the development of the digital transformation of companies every year. In 2022 it was an open secret and we were observing how e-wallets were having an interesting growth, as well as deferred payment methods. Now, in 2023, we discover that for more than half of the companies in Spain this already means a higher volume of income.
Juan José Llorente, Country Manager of Adyen in Spain and Portugal.
With this, within its strategic plan, 6 out of 10 Spanish companies that have payment in installments indicate that they have added this option precisely because of the demand of their customers (63%), and more than half of them (57%) they claim to have increased their income for that reason.
Despite this, in Spain there is great ignorance on the part of the conditions and consumer protection when talking about this type of payment method. Specifically, 44% of consumers do not use deferred payment and the majority that do not do so is because they mistrust their financial institutions (14%).
User loyalty, a key process for digital transformation
With the arrival of digitization, the user experience acquires a relevance never seen before and the demand of consumers is increasing. According to him Adyen Report on Retail 2022In times of economic uncertainty, 82% of consumers determined that they will take advantage of discounts and offers.
Customer loyalty and personalization of the experience are essential requirements for the user in 2023. In this new report on payment methods we discover that 7 out of 10 respondents (74%) consider that, in order to retain them, the payment methods must offer promotions.
With regard to payment methods, among the main challenges of companies in our country is digital transformation according to 50% of respondents. It is followed in second place by fraud and security (43%) followed by its relationship with customers (37%).
According to the results of this new study, it can be seen how company strategies tend to cover consumer demand, since 51% of the companies surveyed determine that they want to identify their regular customers and apply discounts in exchange for their loyalty. at the time of payment.
In sectors such as the sale of luxury items or the hotel industry, the loyalty of foreign customers plays an important role. 50% of companies considers it important to offer this type of audience their local payment methods, as it is a way to increase their trust and loyalty. Followed by 37% who believes that the more payment methods are offered and available, the more sales opportunities there will be.
The price of security, the biggest concern of buyers
Security continues to be one of the priorities for consumers when evaluating different payment methods, while it remains one of the biggest concerns for businesses (57% of companies). Specifically, 5 out of 10 retailers of our country consider it a priority to offer payment options with the lower risk of chargeback to your customers. Therefore, it is not surprising that for companies the challenge of 2023 in terms of payment methods is precisely the proper management of fraud and security (51%).
As far as consumers are concerned, survey data reveals that the vast majority of them value above all the security offered by payment methods (87%) when deciding between one or the other. Despite this concern, almost 7 out of 10 users state that they have never experienced fraud in their purchases (67%).
When choosing with which payment method they feel more secureconsumers say it is the credit/debit card (82%), however, it is precisely with this payment method that they have experienced fraud to a greater extent (19%). When talking about security, Strong Customer Authentication (SCA) also comes into play to reduce fraud, exactly half of the people surveyed prefer to receive authentication codes on their phone via SMS when buying (53%).
2026: predictions of an uncertain future
Payment methods will condition the future of purchasing habits for the next three years. According to 36% of consumers, by 2026 e-wallets and virtual cards will completely supersede physical credit/debit cards and more than 3 out of 10 users (31%) say that cash will be completely extinct within your shopping routine.
When it comes to investment and business behavior, when it comes to forecasting the future of the market, 8 out of 10 agree with the statements that it will drive investments in technologies that favor purchases through different methods of digital payment (85%). In turn, they consider that it will be necessary to offer incentives through means of payment to build customer loyalty (84%) and consider that they will increasingly offer deferred payment options (82%).
In the words of Juan Jose Llorente: “This type of study allows us to know not only the present and the past, but also analyze the future of payment methods and the potential investment in innovation of Spanish companies. And adds: “There is no doubt that the integration of all business management on the same platform will be essential in the coming years to be able to enjoy all the advantages derived from unified commerce and to make data management even easier. In addition, deferred payment options will make their way at a good pace among user preferences. For this, the work of financial technology platforms such as Adyen that integrate payment methods and expand the quality of the service will be essential, in turn obtaining greater flexibility when accepting any type of purchase alternatives in businesses”.