This holiday season one in three shoppers plan to use their credit cards, while nearly 40 percent will use their debit or check cards according to the National Retail Federation's 2006 Holiday Consumer Intentions and Actions Survey. This year, online shopping sales alone are expected to increase 23 percent. The forecasted 70 percent use of electronic payments - whether shopping online or waiting in line - is a rather sizable contribution to the $457.4 billion expected in holiday spending for the U.S. economy.
With a fifth shopping weekend added to this season's holiday calendar, ShopperTrack reports that Dec. 23 will be the largest traffic day for retailers, surpassing the traditional day after Thanksgiving. For most retailers, 50 percent of their profits and sales are achieved during this spending period - these numbers are supported by the 20th century innovation of electronic payments.
"Electronic payments offer tremendous benefits for both consumers and businesses and this is most evident during the holiday shopping period. In addition, electronic payments spur innovation and competition in the marketplace," said Peter Madigan, Director for the Electronic Payments Coalition.
Particularly during the holidays, retailers see the increased benefits of electronic payments with increased sales at the checkout, faster customer transactions, prompt payment, and reduced incidences of bounced checks or counterfeit currency. Concurrently, consumers enjoy the benefits of convenience, reliability, and security of electronic payments.
Today, more Americans are using electronic payments. In fact, the majority of consumer transactions now take place using electronic payments. This flexible and convenient form of payment continues to account for an increasing share of revenue for the U.S. economy, accounting for more than $2.5 trillion in transactions annually.
The Electronic Payments Coalition is a broad-based group of 52 community banks, trade associations, financial services institutions, and payment card networks dedicated to protecting consumer choice and competition. Its mission is to educate policy-makers and the public about the value of payment systems and the many benefits provided by these systems to consumers and merchants - including convenience, speed, reliability, security, and fraud protection. http://www.ElectronicPaymentsCoalition.com
