a brand
of
Contactless
Cashless
CardlessEvolving Consumer
Demands and the Future
of EBT
Overview
1
What we will cover…
Joseph Barna
EVP, Government Payments
goEBT, a brand of CDE
Thanks for joining us! During this session, we will discuss three
major changes that EBT must address to keep up with changing
consumer demands.
• CONTACTLESS: EBT cannot be contactless until account security can be managed by a method other than PIN entry.
• CASHLESS: How could QR codes balance the touch-free demand of consumers while protecting their sensitive account data?
• CARDLESS: Could mobile wallets make EBT more easily accessible to the 56% of consumers who want to use their phones as
their primary method of payment?
Key Consumer Trends Impacting
Retail and Payments
2
Online, digital, BNPL Afterpay sales hit $1 billion in value for Q3 2020.
65% of Afterpay customers are
either millennials or Gen Z
members.
Klarna partnered with Google
to pair its BNPL mobile app
with Google Pay.
Klarna now has 7.9 million
customers within the U.S (as of
June 2020).
• 47% of consumers in large cities have shifted to shopping for retail products online
• 63% of millennial shoppers have used digital wallets to make purchases between June and August 2020
Source: NEW DATA: Five Payments Innovations For Winning The Digital-First
Shopper, https://www.pymnts.com/news/retail/2020/paypal-how-we-shop-five-digital-payment-innovations-that-can-win-digital-shoppers/
Key Consumer Trends Impacting
Retail and Payments
3
Smartphone adoption
• 56% of consumers expect their phones to become their primary payment method (2019)
• 29% of consumers now prefer to pay with
contactless payment methods
• COVID-19 has revitalized interest in
QR codes for payments
• CVS, Walmart allow customers to use
mobile payments and QR codes
Source: Anatomy of a Consumer Payment, https://www.pymnts.com/wp-content/uploads/2020/08/PYMNTS-Anatomy-Of-A-
Consumer-Payment-August-2020.pdf
4
Source: Anatomy of a Consumer Payment, https://www.pymnts.com/wp-content/uploads/2020/08/PYMNTS-Anatomy-Of-A-Consumer-
Payment-August-2020.pdf, 2. NEW DATA: Five Payments Innovations For Winning The Digital-
First Shopper, https://www.pymnts.com/news/retail/2020/paypal-how-we-shop-five-digital-payment-innovations-that-can-win-digital-
shoppers/
• COVID-19 pandemic has sparked a need for touch-free experiences
• Surge in online ordering
• Online purchasing pilot program for EBT
• Digital payments projected to reach
$4.4 trillion by end of 2020
• 80 million U.S. adult consumers have switched to online shopping
Key Consumer Trends Impacting
Retail and PaymentsSafety and hygiene
Key Consumer Trends Impacting
Retail and Payments
5
Three major trends EBT must address
CONTACTLESS
› Consumers want safer, touchless
transactions
› Solutions for secure in-store
transactions without
PIN
CASHLESS
› Consumers want
to use phones as
primary payment
method
› Shift toward mobile wallets
CARDLESS
› Consumer adoption of QR
codes
› QR codes offer a balance of security
and touch-free
Contactless
6
Trend toward safer, cleaner, faster transactions
• 69% increase in no-touch payments since January1
• 79% of consumers surveyed use contactless payments2
• 74% will continue to use contactless post-pandemic2
• 61% of U.S. cardholders say that being able to pay contactless is at least somewhat important.3
• 63% of millennial shoppers have
used digital wallets to make purchases
during the last three months4
safer
cleaner
faster
Sources: 1. CS News, State of Retail Payments study, NRF and Forrester 2. Mastercard Global Consumer Study, APRIL 29, 2020
3. Anatomy of a Consumer Payment 4. NEW DATA: Five Payments Innovations For Winning The Digital-First Shopper
Blake Rosenthal
Executive Vice President,
Head of Mastercard Acceptance Solutions
“Contactless offers consumers a safer,
cleaner way to pay, speed
at checkout, and more
control over physical
proximity at this critical
time.
Contactless
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Two touchpoints…
Touching the PIN Pad
Touching the Receipt
PIN ENTRY RECEIPTS
Cashless
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Sources: 1. Anatomy of a Consumer Payment 2. New research suggests the coronavirus could live on cash, pushing consumers toward
digital payments, https://www.businessinsider.com/coronavirus-remaining-on-cash-may-accelerate-cashless-adoption-2020-10 3. The 2020 McKinsey Global Payments Report
Apple to broaden the
mobile walletpayment
capabilities of iPhones
31% of U.S. merchants
considerthemselves
cashless as of April 2020
Cash usage was already
declining in major markets prior to COVID-19
Cardless
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QR codes are now accepted
• EBT users only need a smartphoneto scan QR code
• QR codes simplify transactions for merchants
• Increased safety of transactions
• ExxonMobil has contactless and cardless payment at pumps
Sources: 1. Flipping the Model for EBT Transactions with QR Codes by Naveen Nukala, https://www.fisglobal.com/en/insights/what-
we-think/2018/july/ebt-transactions-qr-code, 2. ExxonMobil Brings New Contactless Payment Technology to the
Pump, https://csnews.com/exxonmobil-brings-new-contactless-payment-technology-pump
Takeaways
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Key trends impacting the retail space: Online, digital, BNPL, smartphone adoption,
and safety & hygiene
EBT cannot be contactless until account security can be managed by a method other than PIN entry
QR codes simplify transactions by allowing merchants to accept payments beyond
cash or card
As businesses and consumers gradually shift away from cash and credit card transactions, digital payment methods are seeing a rapid increase in usage
worldwide
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Q&Awww.goEBT.com
Thank you!
Joseph Barna
EVP, Government Payments
goEBT, a brand of CDE
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www.goEBT.com