Serving the connected consumer of the future

A joint Strategy& and Electronic Transactions Association survey recently studied 1000+ consumers, 25+ merchants, and 50+ payments executives to understand consumer and merchant pain points and overlay against payment providers perception of the market.

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Serving the connected customer of the future
Strategy& studied 1,000+ consumers, 25+ merchants, and 50+ payments executives to understand consumer and merchant pain points and overlay them against payment providers’ perception of the market

Consumer insights
Shopping/paying experience is becoming more digital
online almost ubiquitous



Security remains a primary concern for consumers
How would you react if you learned that your credit or debit card information might have been compromised in a retailer security breach?
20% 25% 55% 18% 24% 58% 21% 22% 57%

“I would stop shopping at that retailer”
“I would wait to be contacted by the credit card company, my bank, or the retailer” “I would cancel the potentially compromised card”




Customers value:
Connected and digital Traditional

New product alerts Personalized deals and coupons based on shopping patterns Price comparison

Time Convenience

Security Savings

Paying as you go and avoiding checkout Real-time rewards used at checkout

Connected Consumers are those who have made an online and mobile transaction over the past 3 months Digital Consumers are those who have made an online transaction over the past 3 months 3 Traditional Consumers are those who have not used online or mobile for any of their transactions over the past 3 months
1 2

Merchant insights
Merchants recognize digital shopping trends…

Digitization of shopping

50% 42% 25%

Increase in threat of theft

Shift to mobile

Shift to two-way customer communications

Shift to social mediainfluenced shopping experience

…and are looking to payment service providers for value-added services
Aggregation/ reporting of payment data More transparent pricing

Top three services o ered

Analysis/insights of payment data Benchmarking services comparing payment data

Payment-integrated loyalty programs CNP fraud protection

Payment service providers insights
Payment service providers have a good understanding of consumer and merchant painpoints…
Largest painpoints
% listing need as “most important” 1% Other 10% Complexity 13% Lack of standardization 13% Speed of checkout 15% Irrelevant marketing/deals 22% Privacy Complexity 24% Other 2% Privacy 4% Lack of 21% standardization Security 23%

24% Security

Cost 26%



…however, an opportunity exists to support broader commerce e orts
Payment providers have the opportunity to move beyond traditional payments facilitation to help the merchant better serve the connected consumer.
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