Report: What Consumer Social Media Buzz Means for Payments (Sept. 8, 2015)
Retailers globally may be facing pressure to adopt new payment technologies, as shoppers demand simpler and more innovative ways to pay, according to MasterCard’s first Retail Social Listening Study. The first-of-its-kind study, according to Mastercard, taps into what consumers are saying on social media about payments and retail.
New digital payment methods elicited the most positive conversations around convenience, the study indicates. Rewards and benefits were the most talked about and most positively discussed topics across social media when it came to shopping and retail, with consumer discussion about which retailers accept newer forms of payment the second-most discussed topic.
The study, conducted with PRIME Research, analyzed more than 1.6 million social media posts from July 2014 to June 2015 on the subject of shopping and retail conversations, in the context of MasterCard and its industry peers. The social media channels examined included Twitter, Facebook, Instagram, Forums, Weibo, Google+ and YouTube. The study covered consumer opinion in 61 markets in North and South America, Europe, Africa, Asia and the Pacific Rim.
The highest percentage (96 percent) of favorable conversations on social media regarding digital wallets and in-app payments was in North America. In Latin America, contactless payments were discussed more (88 percent), compared with digital wallets and in-app payments (12 percent). Digital wallets and in-app payments (93 percent) were discussed more favorably than contactless payments (91 percent) in Europe. Meanwhile, rewards and benefits were the most discussed topics in the Middle East and Africa, and the region’s consumers discussed digital wallets and in-app payments slightly more favorably than contactless payments, 93 percent to 89 percent. Asia-Pacific had the highest percentage of favorable tone on the topic of contactless payments.
“The wave of social engagement we see every time new payment innovations are rolled out truly reflects the demand and desire for new and more convenient ways to pay,” said Carlos Menendez, executive director for international markets at MasterCard. “It also shows that payments have really moved into the heart of the shopping experience, causing frustration when not accepted and engagement when fast, easy and personal.”
In other MasterCard news, the card company reportedly will allow “high-value” mobile contactless payments across all contactless terminals in Europe by 2017. Consumers currently have fixed amounts on the purchases they make, for example €25 (US$27.95) in France and £30 (US$46.13) in the U.K. What’s more, contactless payments will be accepted at every POS in Europe by 2020, according to MasterCard.