A new report from checkout.com and YouGov said U.S. consumers show significant skepticism towards digital payments, with only 8% transacting online daily compared to 35% in Brazil.
Digital wallet adoption in the U.S. lags at 65%, far behind China's 93% adoption rate.
Consumer trust issues lead to 40% of shoppers abandoning carts over security concerns.
AI tools are widely used, but 60% of users see them as a data security risk.
Digital identity is seen as a potential solution, with 60% of Gen Z viewing it as a future primary payment method.
A new report from Checkout.com and YouGov reveals U.S. consumers are far more skeptical of digital payments than their global counterparts, a trust deficit that directly impacts online commerce and slows the adoption of digital wallets.
A tale of two wallets: The data paints a stark picture of the trust gap. Just 8% of U.S. consumers transact online daily, a fraction of the 35% in Brazil. This hesitancy extends to digital wallets, which have been adopted by only 65% of Americans, far behind the 93% adoption rate in China.
The cost of caution: This consumer anxiety directly hits merchants' bottom lines. The report finds that globally, 66% of consumers see payment performance as the top driver of trust. For instance, about 40% of shoppers abandon carts over security concerns, and just as many won’t return to a merchant after a single failed payment.
The AI paradox: Artificial intelligence further complicates matters. While over half of regular online users engage with AI-powered tools, a majority (60%) also believe AI poses a data security risk, adding another layer of mistrust for businesses to overcome.
The report suggests digital identity could be the key to rebuilding confidence. A remarkable 60% of Gen Z consumers believe a digital ID will be their primary payment method in the future, viewing it as a way to improve security, speed, and personalization. Beyond the checkout, payment performance is reshaping the future of work, with 70% of gig workers saying they would take more shifts if they received instant payouts, according to the report. At the same time, CX Dive found peer-to-peer payment apps are becoming hotbeds for fraud, with one survey finding about a fifth of users have been targeted by scams.
