An annual survey from PSCU finds younger generations are increasingly turning to mobile wallets for payments. The 2019 Eye on Payments: Payment Preference Motivated by Convenience and Ease of Use provides a detailed snapshot of consumer preferences this year, driven by responses from more than 1,750 consumers surveyed across the country. It finds mobile wallet usage is on the rise, with three out of every 10 consumers reporting they use a mobile wallet to make purchases either online or in stores.
Mobile wallet usage is even higher among younger generations: Six out of 10 Gen Zers and Millennials report using a mobile wallet, with almost half using the technology at least a few times per month, said PSCU officials. The top reason people reported not using a mobile wallet is because they do not know what it is or how to use it.
Apps, debit for online purchases also gain ground
The survey also finds purchasing something on the Internet or through an app has become second-nature to most consumers. Nearly 96 percent of consumers report making online purchases at least a few times per year, with 57 percent making an online purchase at least a few times per month. Additionally, over one-fourth report using a mobile app for order-ahead food purchases at least a few times a month, and two-thirds use a streaming service like Netflix or Hulu.
Overall, respondents prefer to pay for online purchases, order-ahead food and streaming services with a debit card, further supporting the finding that convenience trumps security. In particular, a majority of Gen Z and Millennials agree they are comfortable using a debit or check card to make online purchases.
“This is especially noteworthy given card-not-present fraud has increased and debit is slightly less secure than credit when it comes to liability for unauthorized card use,” said PSCU in a summary of the report.
Among the other top trends in payments: contactless cards are primed for wider adoption, consumers are increasingly choosing debit to pay for transactions, and convenience trumps security as consumers say convenience and ease of use are the main drivers when choosing a payment method.