Consumers plan to head to brick-and-mortar stores to buy gifts this holiday season, but many have concerns about physical retail. A majority (78%) of shoppers say they fear for their safety and security while shopping in-person during the holidays this year, according to a new survey from retail mobile communications platform Theatro. Most agreed that more proactive measures are needed, with 60% saying they would like retailers to invest more in tools and technology to keep stores safe during the 2024 holidays. Nearly half (47%) of holiday shoppers are frustrated by understaffed stores and said it negatively impacts their willingness to shop there, with 22% saying they’ll avoid a store at all costs if it’s not properly staffed.  More than seven-in-10 (72%) shoppers said they anticipate long lines and crowds being the most frustrating aspect of shopping at brick-and-mortar stores this holiday season, while 27% of shoppers said they’ll likely abandon their shopping cart while waiting in line if there’s not enough employees to keep the line moving. The survey revealed that 26% of shoppers plan to shop more in-person this year this holiday season compared to previous years. More than half (54%) say they’ll rely on their typical mix of in-person and online shopping. When asked what draws them to physical stores, 64% of shoppers said they want to see and touch the product, while 32% enjoy the festive atmosphere and 34% appreciate being able to easily return items. When it comes to buying online, 59% said they do so to compare prices and save money, while 51% want to access a greater selection and 31% flagged that learning about product info online is easier than asking an employee. “The holidays are a time for joy, but shoppers are delivering a clear message: safety and service are non-negotiable while shopping for gifts in 2024,” said Theatro CEO Chris Todd. “In a year defined by many stresses and pressures, retailers have a chance to stand out by providing memorable experiences that make every visit feel like a gift itself.”  Self-checkout or self-service devices that are difficult to use or malfunction ranked as shoppers' top annoyances while encountering retail store technology (36%). Thirty percent said they are annoyed when employees haven’t been properly trained in the store’s technology, while 24% are annoyed by store employees staring at a device. Additional insights from the survey include the following: Theatro used the third-party survey platform Pollfish to conduct an online survey of 500 U.S. consumers aged 18 and older in October 2024. ## Protecting Brands and Building Consumer Trust: Discover Global Network’s Approach to Mitigating Risk In payments, mitigating fraud and risk is essential. Fraud is growing, and access to advanced tools helps fraudsters exploit payments vulnerabilities. Companies must prioritize robust defenses to safeguard their operations. Kate Weiler, director of payment services risk at Discover® Global Network, told PYMNTS that fraudsters use advanced technologies to commit financial crimes worldwide. “A company’s brand is a critical component that helps to instill consumer confidence — and that’s something that can rapidly diminish in a digital world,” she said. Fraudsters are everywhere, probing for vulnerabilities in various commerce systems, especially where payments are concerned, she said. “A brand can be impacted at every interaction, and every engagement with our customers, whether they are account holders, acquiring partners or merchants, can pose risk,” she said. In the digital world, transactions and various payment types come from all angles, Weiler said. The rise of artificial intelligence also introduces more risk, as fraudsters can harness advanced technologies to launch large-scale attacks or impersonate legitimate people or organizations to catch their victims unaware. The duty is incumbent on enterprises, payments firms and networks — Discover among them — to ensure compliance, creating a safeguard against criminals, Weiler said. Discover has a brand to protect and needs to instill confidence across its own user base and clients since millions of transactions cross the Discover platform daily. The balancing act between keeping the fraudsters at bay without introducing more friction for merchants and cardholders is tricky, Weiler said, adding that simply declining more transactions is not the easy fix. For platforms such as Discover Global Network, data offers the best lines of defense against criminals, she said. Data also can be used to understand where transactions are originating and what patterns might be taking shape that warrant further analysis. She offered an example where a merchant is “set up” as a small clothing shop, but the transaction amounts tied to that business are higher than would be seen with a business in that line of commerce. Weiler pointed out that the Discover Global Network High Brand Risk program allows the network to obtain incremental data insights from acquiring partners into the merchants that may operate in categories that do indeed pose higher risk. Without this data and registration by acquirers, she said, “we would lack ability to provide oversight and monitoring of this [high-risk] activity,” such as sports betting. The level of detail extends to geolocation and other specifics, which may be tied to transactions crossing state lines. By drawing a bead on anomalous transaction trends and other signals, the potential is there to cement the “payments for good” concept, where the Discover Global Network is not being used for criminal means. Asked by PYMNTS about the roadmap ahead for Discover, Weiler said that managing risk will continue to be the backbone of the company’s efforts, especially as faster and instant payments gain ground. The introduction of a portal for High Brand Risk operations will streamline many of the manual processes that exist for acquirers and merchants, “while getting the data to us faster, with a simpler way of communicating any potential risks,” she said. ## Fintechs Navigate the Shifting Payments Landscape: Instant Payments, Fraud Prevention are Top Priorities Discover Global Network has released the third portion of its 2024 Payments State of the Union, the most comprehensive study of its kind, with key insights into the payments ecosystem. Conducted in partnership with 451 Research of S&P Global Market Intelligence, Discover Global Network surveyed thousands of decision-makers across fintechs, merchants, and consumers to better understand if ecosystem priorities are aligned. Over the past few years, the fintech industry has had a transformative effect on the way consumers and businesses leverage finances for their needs. Yet, some fintechs are at crossroads of satisfying both parties due to complex requirements from merchants and consumers. Striking the right balance between these needs has become essential for continued success. “The fintech ecosystem is having a transformative impact on our everyday lives. We’re seeing a lot of adoption and maturation of financial services from consumers and businesses,” said Jennifer Cruz, SVP, US Acceptance & Credit Issuing, Discover Global Network. “That said, fintechs walk a tightrope between consumers who expect instant and convenient payment experiences and merchants that demand seamless integration and security. As a leader in financial services and in our fourth year of surveying thousands of decision-makers within the payments ecosystem, this study should help fintechs with their persistent balancing act.” ## The Rise of Instant Payments The study found that instant payment adoption is increasing, with 73 per cent of consumers using the payment method in the last 90 days. Consumers revealed interest in using instant payments for: When deciding to use an emerging payment experience, 51 per cent of consumers see the security of their personal information as the most important factor; followed by ease of use (33 per cent) and convenience (30 per cent). While many believe that added friction would put customers off, the majority (71 per cent) of consumers said they are willing to adapt to additional security steps when logging in or at checkout. “The third instalment of this year’s survey revealed significant opportunities for fintechs to address the needs of both consumer and merchant audiences,” said Jordan McKee, research director at 451 Research. “Contrary to expectations, their priorities aligned more closely than anticipated, unveiling a clear path to current and future growth. Overall, the findings emphasise that instant payments and fraud prevention are key areas where fintechs should concentrate their efforts to drive success.” ## Merchants Demand Secure and Seamless Payment Experiences Merchants view accepting payments as a highly strategic focus for competitive differentiation (61 per cent) – seeing payments as critical to the success of the customer experience (58 per cent), business performance (58 per cent), and customer loyalty (57 per cent). Merchants also want to improve fraud prevention processes (75 per cent) and provide a wide variety of payment options for consumers (75 per cent) to ensure business success. Thirty-eight per cent of merchants identified reducing fraud/chargebacks as a top business payment priority in the next two years. ## Fintechs’ Key Focus: Bridging Consumer Needs and Merchant Expectations Fintechs see consumers (49%) and merchants (39%) as a growth opportunity in the next five years. Fraud prevention (92%), payment data security (92%), commercial/B2B payments (90%), and instant payments (93%) are important payment initiatives for fintechs. Ninety-three per cent of fintechs say instant payments are an important emerging payment use case for their business. Business-to-business payments (66 per cent), business-to-consumer payments (57 per cent), and consumer-to-business (55 per cent) are the instant payments use cases fintechs are most interested in pursuing. Fintechs are also most interested in keeping their expertise in artificial intelligence (AI) (44 per cent) and half (50 per cent) of fintechs want to leverage AI to pursue fraud prevention. “The third installment of this year’s survey revealed significant opportunities for fintechs to address the needs of both consumer and merchant audiences,” said Jordan McKee, Research Director, 451 Research, a part of S&P Global. “Contrary to expectations, their priorities aligned more closely than anticipated, unveiling a clear path to current and future growth. Overall, the findings emphasize that instant payments and fraud prevention are key areas where fintechs should concentrate their efforts to drive success.” ## The Way Forward: A Future-Proof Payments Strategy This comprehensive payments ecosystem study reveals significant market dynamics impacting Discover's competitive position. The high consumer adoption of instant payments (73%) and merchant prioritization of payment technologies (61% view it as strategic) signal strong growth potential in digital payment solutions. Three key opportunities emerge: * The alignment between consumer demands and merchant priorities creates a favorable environment for Discover to expand its payment network services and potentially increase transaction volume and market share. * The study highlights a strategic pivot point in the payments industry. The convergence of instant payments and fraud prevention as top priorities (93% and 92% respectively among fintechs) presents a significant opportunity for Discover's network infrastructure. * The focus on B2B payments (66%) as the leading instant payment use case, coupled with AI integration for fraud prevention (50%), suggests an evolving business model that could drive higher-margin commercial payment volumes. This positions Discover favorably against competitors in the rapidly growing digital payments space.