Factors influencing customer choice of payment methods

  • Created by: sarp2004!
  • Created on: 01-02-20 09:17


  • Most customers choose a method ofpayment that suits their personal circumstances. Older customers, for example, may prefer to pay by cash or cheque while younger customers are likely to use payment technologies.
  • Credit cards and debit cards make it easy to pay for larger transactions where cash would not be suitable.
  • Direct debit allows customers to spread payment over a period of time.
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Safety and Security

Customers want to know their money is safe when making a purchase. Some customers prefer not to carry cash or cards as they may be stolen.

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Some methods, such as credit cards, may require customers to pay a fee or rate of interest.

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Some methods require access to technology such as smartphone, tablet or computer.

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The ability to pay remotely means goods and services can be purchased from almost anywhere in the world at any time of day or night.

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Ability to Pay

Some customers may overspend and get into debt. For example, using a credit card allow the cardholder to delay payment, but they may have difficulty paying the credit card bill when it comes due.

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The payment method used by customers is based on a number of factors. The methods chosen will have an impact on the enterprise's revenue.

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