More than half of Spaniards say that they are free to choose the means of payment at the point of sale
Having the freedom to choose how to pay at the point of sale is increasingly important for the viability of retailers. In the UK, as a leader, Italy and Spain the perception that this is possible is high. Specifically, 74%, 60% and 57% of consumers, in that order, say that they can exercise their choice of payment method at the point of sale. This is not the case in other southern European countries such as Portugal or in Latin America, such as Colombia, Argentina and Peru, where users report not having been able to choose their preferred payment method at the point of payment.
According to Minsait Payments' Digitisation of payments at the point of sale report, the lack of options to choose different payment methods in establishments means that cash is still often prioritised. Without having anything to do with equipment or consumer choice, many merchants choose not to accept digital payments, leaving the shopper to use cash. Moreover, in 46% of cases, point-of-sale reluctance to accept digital payments is one of the main reasons for shoppers to use cash in-store.
According to consumers dissatisfied with their inability to choose their preferred payment method in shops and establishments, there are three difficulties that impede their choice: the fact that their preferred payment method is not accepted by the point of sale; technical errors at the time of payment; and the establishment of additional conditions such as commissions or differentiated prices by the merchant.
With regard to what could make it easier for merchants to consolidate their digitisation processes, the Minsait Payments report states that nearly half of the experts who participated in the study consider smartphones as a tool for points of sale to digitise their collections and payments, especially in those still underserved (long-tail), posing as one of the best allies to expand financial inclusion and digitisation of the point of sale, especially in emerging countries.
In Europe, there is still a significant challenge in digitising cash collection for the self-employed and small businesses, which underlines the need for further progress in this area to ensure that all merchants can benefit from the advantages of digitisation.
In this respect, softPOS technology, which allows a smartphone or tablet to be converted into a point-of-sale (POS) terminal without the need for additional hardware, is a promising solution. This approach allows card payments to be accepted via an application that uses the mobile device's NFC technology, eliminating the need to purchase expensive physical terminals and providing greater flexibility for merchants.
The survival of cash
According to the report, the prevalence of cash is due to a variety of reasons. Despite the progress of digitisation at the point of sale and the universalisation of cards, both physical and virtual, there are still non-digitised points of sale, where only cash is still accepted today. At the institutional level, its existence and use is considered essential, so that it always remains a tangible means of payment for the population, as it is still essential for many businesses and households that are financially or even digitally excluded. Moreover, cash is still the means of payment that enables the informal economy, which reaches a considerable size in many of the countries in the Report, despite being residual in European countries such as Portugal and Spain.
Minsait Payments' "Digitalisation of payments at the point of sale" sector report is part of the study that the company presents every year on Trends in Means of Payment, and which is prepared in collaboration with Analistas Financieros Internacionales (AFI). This document gathers the opinions of more than 4,800 banked internet users in Spain, Italy, Portugal, the United Kingdom and Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and the Dominican Republic).
Access to the report: Report: Digitisation of payments at the point of sale - Minsait Payments
