Payments Analytics Highlight Valentine’s Day Spending Trends

On this Valentine’s Day, insights from payments data show that Americans will continue to increase their day of love spending on experiences, according to an analysis from ETA member Mastercard. According to Mastercard SpendingPulse, which provides overall retail spending trends across all payment types, including cash and check, experiential purchases – restaurants and hotels – is set experience solid growth this Valentine’s Day.

For restaurants, retail sales could increase 5.4 percent to $15.3 billion today, Mastercard predicts. For hotels, sales could jump nearly ten percent year-over-year, reaching $1.4 billion.

Unlikely to feel the love tonight are more traditional Valentine gifts, the report said. Jewelry sales are expected to decrease this year to $1.1 billion, despite a 2018 Valentine’s Day performance that surged over 25 percent higher than 2017. Overall luxury sales are likely to be flat, Mastercard predicts, generated $250 million and falling just .4 percent.

Data from the National Retail Federation’s (NRF) Valentine’s Day Spending Survey predicts that consumers will spend $162 per person on average on Valentine’s Day in 2019, up from $144 in 2018. Despite the higher average spend, NRF data suggests a downward trend in participation in the holiday – 51 percent of Americans plan to celebrate the holiday in 2019, down from 55 percent last year and from a high of 63 percent in 2007.

Significant others aren’t always the focus of Valentine’s Day spending, the NRF survey found. Gifts for pets continue to be popular, the NRF report says – 20 percent of consumers will buy a present for the pets, totaling $886 million and dwarfing 2008’s $519 million. And 11 percent of Americans plan on treating themselves to gifts like clothing and jewelry; just under 10 percent plan to get together with other single friends and family.

 

https://www.electran.org/publication/transactiontrends/payments-analytics-highlight-valentines-day-spending-trends/


ETA Expert Insights: Imagining the Future of Mobile Payments

By the ETA Mobile Payments Committee

Our industry spends a lot of time trying to make our products and services invisible. That is, we try to make payments frictionless so that the end user doesn’t have to think about the process at all. We want consumers to focus on what they’re buying, not how they’re buying. The ETA Mobile Payments Committee works hard to make this seamless shopping experience a reality for everyone by promoting the adoption of mobile payments and identifying ways to expand the opportunities afforded by new technology. Below, committee members step back and consider what the mobile payments space will look like in 2025.

Q: Fast-Forward to 2025 – what is your wildest idea in terms of what will be hot in the Mobile Payments space?

Harry Hargens, TSYS: We may see a significant number of merchants (retail and restaurants) deploy technology that enables an “Uber experience”. Walk in, pick up an item you want to purchase, walk out. Or, finish your meal and just walk out. No interaction with a clerk, waiter, or POS required.  I can’t predict exactly how this will work, but I’m pretty sure that a mobile device (phone, wearable, or implant) will be involved.

Craig Ross, Apple: “Hey Siri, pay for my items.” This is the catch-phrase that I think will be commonplace in 2025. I envision a world where I will be able to select items in a store and place them in a lightweight, reusable, and biodegradable bag made from hemp. Once I’ve completed my shopping, all I will need to do is speak those six words and Siri will take care of the rest. I will not need to authenticate via TouchID or FaceID, as Siri will use the biometrics of my voice to authenticate the transaction and then leverage Apple Pay to complete the transaction. Also, since Siri will know where I am, based on geolocation, she will be able to also send along my loyalty credentials so that I receive my standard double-points or loyalty discount percentage. Talk about hassle-free (and hands-free) commerce …

Steve Klebe, Google: Conversational Commerce (“OK Google, I need a Tall Latte”) is here now and will become much more pervasive in the next 5 years. Starbucks’ integration with Google Assistant is available today across Android, iOS and any Assistant enabled device from a variety of purveyors.

Markiyan Malko, Paysafe: At storefronts I can envision the Amazon Go type of experience where a consumer effectively walks in, grabs what they want, and walk out. We have the tech today and by 2025 it will be cheap enough to deploy and integrate that many mid-large retailers will have it. In eCommerce, I can see the checkout experience getting more streamlined as offerings like Apple Pay in Safari grow and the W3C works on the Payment Request API to make the integration of payments simple for merchants.

 

 

Source: https://www.electran.org/publication/transactiontrends/eta-expert-insights-imagining-the-future-of-mobile-payments/