A new study on account-to-account (A2A) payments reveals that a significant barrier to greater acceptance of this payment method among younger consumers is their limited knowledge and awareness. The study, conducted by PYMNTS Intelligence and Amazon Web Services (AWS), aimed to understand the attractiveness of A2A payments and explore incentives that could motivate consumers to use this method.
Interestingly, the study found that nearly 35% of Generation Z consumers who do not use A2A payments cited a lack of understanding of how these payments work as the main reason for not using this method. Furthermore, 33% of Generation Z consumers were not even aware that A2A payments were possible. This lack of knowledge is more common among younger consumers than older generations, with only 12% of baby boomers and seniors, and 17% of Generation X consumers being unaware of A2A payments.
One possible explanation for this low level of awareness is that many consumers have not encountered A2A payments as an option during online transactions. To gain more popularity, A2A payments may need greater exposure at the point of payment, similar to buy now, pay later options.
The study highlights the need for merchants to launch more comprehensive educational campaigns targeting customers, especially younger consumers. After increasing awareness, the next significant step is addressing concerns about the security of A2A payments. Approximately 15% of Generation Y and Z respondents expressed reservations about the security of A2A payments. Emphasizing effective security measures employed by A2A platforms can help alleviate these concerns and further promote adoption.
In conclusion, to encourage wider adoption of A2A payments, it is necessary to address the issue of limited knowledge and awareness among younger consumers. This can be achieved through educational initiatives undertaken by merchants and by addressing security concerns to build trust. As the benefits of A2A payments become better understood, an increase in usage of this payment method can be expected across all consumer segments.
Sources: pymnts.com
The source of the article is from the blog newyorkpostgazette.com