Product Type: Market Research Report
Published by: TowerGroup
Published: April 2007
Product Code: R301-1269Description The use of credit and debit cards for purchases under $5 (USD) has been limited, but recent developments have shown the need for consumers' ability to make such micropayments. Some solutions also reduce merchants' costs associated with accepting such payments. This Research Note illustrates how card use for micropayments reinforces and can deepen issuers' relationships with their customers, thereby indirectly enhancing profitability. Customer retention is directly linked to product usage. Ideally, frequent use of cards for small everyday transactions will lead consumers to use the cards for larger and more profitable transactions.
Table of Contents
- TowerGroup Take-Aways
- Report Coverage
- Background
- Exhibit 1 US Small Consumer Purchases by Payment Type (2006)
- Exhibit 2 US Micropayments by Purchase Type (2006)
- State of the Micropayments Market Segment
- Listening to the Customer
- Controlling Choices at the Point of Sale
- Exhibit 3 Sample Merchant Interchange Pricing Methods by Payment Option (2007)
- New Marketing Channels for Micropayments
- Exhibit 4 US Users of Internet Services by Age Group (2005)
- New Payment Providers in the Market
- Point-of-Sale Developments
- Exhibit 5 Typical US Consumer's Monthly Offline Cash Purchases by Type (2006)
- Convenience for Customers Where They Shop
- Exhibit 6 US Average Monthly Credit Card and Debit Card Transactions With and Without Micropayments (2006)
- Consumers' Preferred Payment Methods for Small Everyday Purchases
- Exhibit 7 US Consumers' Willingness to Use a Debit or Credit Card for Small Purchases by Type (2006)
- Pricing Incentives and Rules Changes
- Wireless Providers as Competitors at the Point of Sale
- Summary
|
|
