Why Consumers Need Incentives to Adopt Account-to-Account Payments

Convincing consumers to part with their money often comes down to convenience, especially during economic uncertainty.

87% of millennials say convenience is important when shopping, and 52% of consumers believe convenience influences at least half of their decisions.

To drive revenue and consumer loyalty, businesses must make their checkout experience seamless and convenient. The best way to do this is to get customers to switch payment types and adopt account-to-account (A2A) payment methods. 

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A2A payments digitally transfer funds between bank accounts for near-real-time payments. They’re also called open banking payments. Notably, 60% of consumers using A2A payments say convenience is why they use the method.

While fintech payment systems like digital wallets, online payments, and P2P payments (like Venmo) are gaining popularity, they haven’t reached widespread adoption yet. That’s because 36% of consumers don’t understand how A2A payments operate, and another 24% are unaware the option exists (according to a survey by PYMNTS).

But the secret to driving A2A payment adoption is actually very simple—consumers need to be incentivized to try out A2A, and businesses can help nudge them.

This post breaks down the reasons consumers need incentives before adopting A2A payments and the creative ways businesses can drive digital payment adoption. 

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Non-A2A users are willing to switch if incentivized

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No matter how convenient and impressive a piece of technology may be, not everyone is an early adopter. We saw this happen with Uber in 2014 when their market share vs. taxis was only 9%. One year later, Uber jumped to 29% market share—now it’s hovering around 70%.

Account-to-account payment service providers are heading down a similar path. They’re currently only used by 36% of U.S. consumers but have the makings to completely disrupt how people pay, potentially replacing traditional debit cards and credit cards.

The reality is that consumers just need a little nudge to realize that A2A payment services have better functionality than card payments. Here’s what survey data from PYMNTS says potential A2A users want:

• 41% of consumers who have not used A2A transfers in the last 90 days are open to trying them if offered incentive programs. 
• 33% of consumers would like discounts on purchases when using A2A fund transfers.
• 34% of consumers would like cash-back incentives when using A2A payments.

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It’s clear some consumers need a little extra love before making the jump to A2A. And it makes sense since many have security measure concerns or minimal understanding of the technology.

Luckily, we know exactly what these hesitant shoppers need in order to give A2A a shot: incentives. 

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3 ways businesses can incentivize A2A transactions

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To determine what kind of incentives to offer, take a glance at the previously mentioned data above. We see consumers want incentive programs, specifically ones offering discounts or cash-back incentives. 

Note: A2A money transfers typically have lower transaction costs than traditional payment processing.

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Here’s how your business can incentivize without cutting into margins:

1. Offer small discounts on all A2A purchases. You don’t have to discount much for a consumer to choose a new payment option. Try offering 1% off all A2A purchases and increase the amount a bit if needed.

2. Combine A2A payments with your loyalty program. Offer 2x loyalty points (or whatever number makes sense) for every A2A purchase. Because consumers care about earning points for each purchase, they’ll move toward A2A. Plus, you’ll fuel loyalty at your store as customers spend toward rewards.

3. Give A2A customers a small gift with each purchase. A small token like a sticker, tote bag, or coupon will improve customer experience and have the next shopper in line asking how they can get a gift. 

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Takeaways for businesses:

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• If you haven’t already, add A2A payments as an option for consumers; they’re faster and more convenient than card networks.
• Not everyone will understand or want to use A2A payments right away. 
• Create a culture of encouragement and education around A2A payments.
• Many consumers are willing to try A2A payments; they just need an incentive.  
• Offer small incentives to help nudge shoppers toward A2A and build loyalty at your business. 

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Learn more about A2A payments

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As a leading A2A payment provider, Aeropay offers fast, reliable A2A payments for in-store and e-commerce business transactions nationwide.

Businesses using Aeropay experience:

• 25% higher customer spend 
• 30% increase in completed online orders
• 70% increase in online customers returning at most locations

The simplicity, security, and efficiency of Aeropay make it an easy choice for your customers—and your business.

‍Schedule a 15-minute demo to see our full payment solution and make bank-to-bank transfers work for your business.