Choice of payment methods

Question 1

What are the factors influencing customer choice of payment methods?

Answer 1

The factors influencing customer choice of payment methods are:
1) Convenience
2) Safety and security
3) Cost
4) Technology
5) Lifestyle
6) Ability to pay

Question 2

The factors influencing customer choice of payment methods are convenience, safety and security, cost, technology, lifestyle and ability to pay.

1) Convenience:
Most customers choose a method of payment that suits their …

Answer 2

Most customers choose a method of payment that suits their personal circumstances

Question 3

The factors influencing customer choice of payment methods are convenience, safety and security, cost, technology, lifestyle and ability to pay.

1) Convenience:
Most customers choose a method of payment that suits their personal circumstances.
Older customers, for example, may prefer to …

Answer 3

Older customers, for example, may prefer to pay by cash or cheque

Question 4

The factors influencing customer choice of payment methods are convenience, safety and security, cost, technology, lifestyle and ability to pay.

1) Convenience:
Most customers choose a method of payment that suits their personal circumstances.
Older customers, for example, may prefer to pay by cash or cheque, while younger customers are likely to use …

Answer 4

Older customers, for example, may prefer to pay by cash or cheque, while younger customers are likely to use payment technologies

Question 5

The factors influencing customer choice of payment methods are convenience, safety and security, cost, technology, lifestyle and ability to pay.

1) Convenience:
Most customers choose a method of payment 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 …

Answer 5

Credit cards and debit cards make it easy to pay for larger transactions where cash would not be suitable

Question 6

The factors influencing customer choice of payment methods are convenience, safety and security, cost, technology, lifestyle and ability to pay.

1) Convenience:
Most customers choose a method of payment 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 …

Answer 6

Direct debit allows customers to spread payment over a period of time

Question 7

The factors influencing customer choice of payment methods are convenience, safety and security, cost, technology, lifestyle and ability to pay.

2) Safety and security:
Customers want to know …

Answer 7

Customers want to know their money is safe when making a purchase

Question 8

The factors influencing customer choice of payment methods are convenience, safety and security, cost, technology, lifestyle and ability to pay.

2) Safety and security:
Customers want to know their money is safe when making a purchase.
Some customers

Answer 8

Some customers prefer not to carry cash or cards as they may be stolen

Question 9

The factors influencing customer choice of payment methods are convenience, safety and security, cost, technology, lifestyle and ability to pay.

3) Cost:
Some methods, such as credit cards, may …

Answer 9

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

Question 10

The factors influencing customer choice of payment methods are convenience, safety and security, cost, technology, lifestyle and ability to pay.

4) Technology:
Some methods require …

Answer 10

Some methods require access to technology such as a:
1) Smartphone
2) Tablet
or
3) Computer

Question 11

The factors influencing customer choice of payment methods are convenience, safety and security, cost, technology, lifestyle and ability to pay.

5) Lifestyle:
The ability to pay remotely means that …

Answer 11

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

Question 12

The factors influencing customer choice of payment methods are convenience, safety and security, cost, technology, lifestyle and ability to pay.

6) Ability to pay:
Some customers may …

Answer 12

Some customers may overspend and get into debt

Question 13

The factors influencing customer choice of payment methods are convenience, safety and security, cost, technology, lifestyle and ability to pay.

6) Ability to pay:
Some customers may overspend and get into debt.
Example

Answer 13

For example, using a credit card allows the cardholder to delay payment, but they might struggle to pay the credit card bill when it comes due

Question 14

The impact on the enterprise:
Enterprises recognise that in order to maximise sales of products, they need to offer customers a range of …

Answer 14

Enterprises recognise that in order to maximise sales of products, they need to offer customers a range of payment options

Question 15

The impact on the enterprise:
Enterprises recognise that in order to maximise sales of products, they need to offer customers a range of payment options.
These may involve additional …

Answer 15

These may involve additional costs and risks

Question 16

The impact on the enterprise:
Enterprises recognise that in order to maximise sales of products, they need to offer customers a range of payment options.
These may involve additional costs and risks:
1) Cash …

Answer 16

Cash may be stolen and high levels of security are required

Question 17

The impact on the enterprise:
Enterprises recognise that in order to maximise sales of products, they need to offer customers a range of payment options.
These may involve additional costs and risks:
1) Cash may be stolen and high levels of security are required
2) For credit cards and debit cards,

Answer 17

For credit cards and debit cards:
1) Card readers are required
2) Fees are payable by the enterprise on credit card sales

Question 18

The impact on the enterprise:
Enterprises recognise that in order to maximise sales of products, they need to offer customers a range of payment options.
These may involve additional costs and risks:
1) Cash may be stolen and high levels of security are required
2) For credit cards and debit cards, card readers are required and fees are payable by the enterprise on credit card sales
3) For direct debit, …

Answer 18

For direct debit, the customer may not be able to keep up regular payments, which results in a loss of sales revenue

Question 19

The impact on the enterprise:
Enterprises recognise that in order to maximise sales of products, they need to offer customers a range of payment options.
These may involve additional costs and risks:
1) Cash may be stolen and high levels of security are required
2) For credit cards and debit cards, card readers are required and fees are payable by the enterprise on credit card sales
3) For direct debit, the customer may not be able to keep up regular payments, which results in a loss of sales revenue
4) Payment technologies require …

Answer 19

Payment technologies require:
1) Investment in technology
and
2) For the enterprise to become a member of ecommerce schemes