Consumers Prefer to Pay Digitally Instead of Using Cash, Select Vendors Who Offer Cashless Payments

Rhea-AI Summary

According to a new study by Thryv and Payments Dive, small businesses that do not accept digital payments are losing customers. The survey of 2,050 small business consumers revealed that 73% are influenced by payment options when choosing between businesses. Younger consumers, particularly Millennials (68%) and Gen Z (71%), prefer cashless transactions. The findings indicate a growing trend towards contactless payment options, with 71% of respondents intending to continue using them post-pandemic. Furthermore, 64% prefer digital payments for purchases over $1,000.

Positive

• 73% of consumers consider payment options when choosing businesses.
• 68% of Millennials and 71% of Gen Z prefer cashless payment options.
• 71% of consumers plan to continue using contactless payments post-pandemic.
• 64% prefer digital payments for purchases over $1,000.

Negative

• None.

Small Businesses that Provide Digital Payment Options Have an Advantage, Survey Shows

DALLAS--(BUSINESS WIRE)-- Small businesses that don’t accept digital payments are missing out on customers, a new study confirmed.

Thryv, Payments Dive 2022 Consumer Payments Survey (Graphic: Business Wire)

Nearly three-in-four consumers (73%) say that when comparing two businesses, the type of payment options available will influence their final decision, according to data discovered by Thryv Holdings, Inc. (NASDAQ: THRY) and Payments Dive.

The companies surveyed 2,050 small business consumers to determine how payment strategies have changed, what customers seek from vendors, and how they’ll respond if a business doesn’t offer their preferred payment method.

“We’ve seen consumers grow accustomed to the ease, convenience, and safety of digital payments, and the pandemic accelerated this trend,” said Ryan Cantor, Chief Product Officer at Thryv. “Consumers want more digital and contactless payment options, and the small businesses choosing to adapt and capitalize on consumer preferences will win the war of customer retention.”

Younger consumers are driving the trend. According to the survey results, 68% of Millennials and 71% of Gen Z respondents prefer cashless payment options. These younger generations are spending at greater rates than older customers, and their purchasing power has grown significantly as they have aged and advanced in their careers.

Over the past two years, contactless payments have become ubiquitous and consumers have grown accustomed to using digital wallets, touchless terminals and tap-to-pay platforms. Some 59% of consumers say they used such tools more often during the pandemic, and 71% say they intend to continue using cashless or contactless payments in the future.

“More than 50% of my business this year has been cashless,” says Andy Corman, owner of AC Trash Hauling, a junk removal company in the Indianapolis, Indiana, area. “I can send a bill online and I can get paid before I leave the driveway.”

Other key findings from the report include:

• Digital payment options preferred for purchases over $1,000: 64% say they prefer digital payments when paying for larger services, like home repair or medical treatment
• Paperless is the future: 67% of those surveyed said they prefer to receive receipts in a format other than paper, such as email or text
• Safety isn’t a concern: 77% of customers believe using a credit card on an online portal is just as safe or safer than paying in person
• No fees, please: 57% of customers are not willing to pay additional convenience fees to pay with a credit card but when given other digital options, like ACH, they will use them

Download the report for the full results of the survey here.

About Thryv Holdings, Inc.

Thryv Holdings (NASDAQ:THRY) is a global software and marketing services company that empowers small- to medium-sized businesses (SMBs), franchises, and agencies to grow and modernize their operations so they can compete and win in today’s economy. Over 45,000 businesses use our award-winning SaaS platform, Thryv®, to manage their end-to-end customer experience, which has helped businesses across the U.S. and overseas grow their bottom line. Thryv also manages digital and print presence for over 400,000 businesses, connecting these SMBs to local consumers via proprietary local search portals and print directories. For more information about Thryv Holdings, Inc., visit thryv.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220303005928/en/

Media:

Morisa Young

Gregory FCA

347.428.4325

thryv@gregoryfca.com

Investors:

Cameron Lessard

Thryv, Inc.

214.773.7022

cameron.lessard@thryv.com

Source: Thryv Holdings, Inc.

FAQ

What does the Thryv and Payments Dive study reveal about consumer payment preferences?

The study shows that 73% of consumers are influenced by payment options when choosing businesses, with a strong preference for digital payments.

How has the pandemic affected payment preferences among consumers?

The pandemic accelerated the adoption of contactless payments, with 71% of consumers intending to continue using these options.

What age groups are driving the trend towards cashless payments?

Millennials and Gen Z are leading the trend, with 68% and 71% respectively preferring cashless payment options.

What percentage of consumers prefer digital payments for larger purchases?

64% of consumers prefer digital payments for purchases over $1,000.