SOURCE: Balance Innovations LLC
LENEXA, KS--(Marketwired - Mar 6, 2014) - A February survey of 1,488 consumers found that 39 percent were "very confident" that using a credit or debit card was safe. Half (49 percent) of consumers surveyed were only "somewhat confident."
In light of the mass retail payment security breaches in recent months, Balance Innovations surveyed shoppers about their confidence in using credit and debit cards at their primary grocery store and whether they have changed their payment methods in response. Respondents indicated only moderate confidence in credit and debit security and a move toward cash for some (32 percent).
"Retailers have seen the cash tender increasing the last couple of years and even more after the recent credit card breaches," said Lee Jurgens, board chair for the Merchant Advisory Group.
Survey results include:
- While 59 percent of shoppers have not made any changes in payments methods used, 32 percent plan to use cash more often, distantly followed by credit at 8 percent. Increased use of cash likely affects especially smaller purchases.
- Only 30 percent of shoppers age 50-64 said they were very confident about using a credit card at their primary grocery store. Younger shoppers (18-24) were more trusting (48 percent), but 46 percent say they do now use cash more often.
- Supermarket shoppers place the highest confidence in payment security (53 percent) compared with 33 percent of supercenter shoppers.
- Consumers' food safety confidence (49 percent "very confident") exceeds their trust in payment security (39 percent). Important lessons can be drawn from historic food safety confidence ratings in that mass food safety breaches can very quickly turn consumers' trust levels and drive changes in behavior. With more than 60 percent of total grocery sales being credit and debit, according to the NGA/Balance Innovations Payments Study, payment confidence has become an integral part of the shopping experience.
With an increase in cash usage, retailers could see more time spent managing cash and other tenders at the store level. "The United States is under-banked, and cash or preloaded cards are the only option millions of Americans have to pay for goods and services," said Jurgens.
"Many consumers like to use cash because it's anonymous and carries little risk, but for retailers it can be very time consuming to manage and reconcile," said Shelley Bosler, senior vice president for strategic innovations for Balance Innovations. "Increased usage of cash among consumers makes it all the more important for retailers to optimize cash processing policies at both the corporate and store levels."
The survey, conducted by 210 Analytics, LLC, polled an online census-balanced sample of 1,488 shoppers. Balance Innovations will release results of the full survey in March.
About Balance Innovations
Balance Innovations is the leading developer of reconciliation and cash office management solutions for the retail industry. Our solutions integrate seamlessly with existing POS technologies to simplify and improve retailers' cash office management operations. Balance Innovations' premier product, VeriBalance, is an easy-to-use software solution that is helping retailers across the United States and Canada increase profitability and improve operations by reducing labor, bank fees and shrink while standardizing and enforcing best practices and corporate policies. Other products include: vbEPIX™, an electronic check processing solution; vbSecure™, electronic-safe management solution; vbScout™, a self-checkout management tool; and vbInSight™, a corporate reporting product. Customers range from independent grocers to Fortune 50 retailers. For more information, visit www.balanceinnovations.com.